U NIVERSITI T EKNOLOGI

M ALAYSIA
TRAFFIC CONGESTION AND THEIR EFFECT TO
COMMERCIAL RENTAL VALUES

CASE STUDY : CENTRAL TOWN OF JOHOR BAHRU

SITI FATIMAH BT MUHAMAD AKHIR

830413-02-5760
5 SGP

SUPERVISOR : P.M DR BUANG B ALIAS

 Problem Identification

Conclusion &
Recommendation Objectives

Outline
Data Analysis Literature Review

Case Study Research Methodology

PROBLEM STATEMENT

Paul Mitchell & Hadyn Ingram (2002) :

Traffic congested caused decreased in quality access and
land value
Pearson (1958) :
Traffic congested caused loss of attractiveness for shopping
activities and decreased property value

Based on this theory there are several issue ;

……
 Issues;

Does traffic congested have any effect on visitors to city

centre?
Does the factor also effect to the business activities at city
centre?
What is the relationship between traffic congested and
rental values?
 Objectives ;

to examine visitors perception in visiting congested city

centre

to examine the effect of traffic congestion on the business

activities

to examine relationship between accessibility factors that

weigtening by traffic congestion on the rental values
 RESEARCH METHODOLOGY

Literature Review
Data
Collection
Case Study

Questionnaire Survey

Frequency Analysis

Data Analysis
Likert Scale Analysis

Crosstabulation Analysis
LITERATURE REVIEW
Congestion ;
(Oxford Advanced), the state of being crowded, blocked
(Buton & Opcit 1996), traffic congested occurred when the road
unable to support the high capacity volume at the same time.
Accessibility ;
(Faning 1994)
‘….address the degree of convenience or inconvenience in moving
people, good, and services between different loci of activity. The degree
of friction, or inconvenience, is measured in terms of time, cost, and
aggravation. Accessibility is akin to negative transportation cost…’

Relationship between Accessibility & Commercial Properties Values:

(Hallberg & Somake 1996) accessibility is one of the important
element to attract potential buyers on commercial properties
(Garette 1976) The property values which is free from traffic congested is higher
because the income flow more stable. It it because the potential buyers more
easier to visit their premised and level selling more encouraging compare the
other properties.

(Adam Smith 1995) The highest degree level of accessibility affected to the
property values because the premises have the higher competency to distributed
the products.

Definition Rental Values:

Hasmah (1989) ; the amount of money which is payable by tenant for occupying
the properties.

Other Factors That Influence Shop house Values

Macro and Micro Factors

Macro : Economic
Politic & Laws
Social
MICRO FACTORS

Location Amenity of Conveyance

Distance from town Quality of Road
Specific lot Types of Transportation
Facing Main Road Frequency of
Distance From Main Road Transportation Amenity

Accessibility
Physical
Types of Land Use
Broad
Building Design
The other subheading in literature review are :
The concept of demand and supply in property values
Transportation
Haig : Transportations is related accessibility to another places to do the
economic and social activities
Transportation Attribute that Attract Visitors to Central Town
Parking Space
Distance of Travell
a)Primary Zone
b)Secondary Zone
c)Tertiary Zone
PRIMARY DATA COLLECTION

OBSERVATION Inspection the location of case study

Identify congested and “non congested” area
INTERVIEW Valuation Officer
Police Traffic
QUESTIONNAIRE Distributed to Retailers and Visitors
PART A : VISITORS 50 SAMPLING
PART B : RETAILERS 25 SAMPLING
Sampling Technique

-Simple random sampling technique to retailers and visitors

-Harnett (1980), this procedures normally against the best result in obtaining
representative sample for a small population
-The sample size is determined by past studies that are quite similar in this
research.

Faishall Ibrahim (2002) Disaggregating travel component in shopping

85
centre choice, an agenda for valuation practices

Siti Norzehan (2003) Effect of Traffic Congested on Commercial Values 50

Case Study : Central Town, Kelantan
Jefferi Japirun (2002) Effect of Traffic Congested on Commercial Values, 50
Case Study : Jalan Tebrau
 QUESTIONNAIRE SURVEY

DAY RESPONDENT DISTRIBUTED ACCEPTED AVAILABLE TO

ANALYZE

1ST VISITORS 15 15 11

RETAILERS 10 10 10

2ND VISITORS 15 15 12

RETAILERS 5 5 5

3RD VISITORS 10 10 10

RETAILERS 5 5 5

4TH VISITORS 10 10 8

RETAILERS 5 5 5

5TH VISITORS 10 10 9

RETAILERS - - -

TOTAL 85 85 75
Secondary Data Sources
a) Laporan Teknikal Pengangkutan dan Perhubungan, MBJB 2001-2010
TrafficVolume Johor Bahru District
b) Jabatan Kerja Raya Malaysia

Traffic Volume State of Johor Laporan Banci dan Lalulintas Kebangsaan, Kementerian Kerja Raya
Malaysia, 2005

a) Rancangan Struktur MBJB 2001,-2010 Jabatan Perancang Bandar dan

Population Data Desa MBJB
b) Jabatan Perangkaan Malaysia, 2001Jabatan Perangkaan Malaysia,
2001

Numbers of Commercial Unit JB Laporan Pasaran Harta 2000-2005, Terbitan Kementerian Kewangan
Malaysia

Laporan Ekonomi Negeri Johor CD-ROM Rancangan Struktur Negeri Johor, 2010-2020

Employment Population Statistics

Jabatan Statistik (2001)

Demand and Supply of Parking Space PSM, Abd Rahman Karim 2005
 DATA ANALYSIS

FIRST OBJECTIVE FREQUENCY ANALYSIS

LIKERT SCALING
SECOND OBJECTIVE FREQUENCY ANALYSIS
CROSSTABULATION ANALYSIS
LIKERT SCALING
THIRD OBJECTIVE CROSSTABULATION ANALYSIS
 ANALYSIS TECHNIQUE

FREQUENCY ANALYSIS

Frequency analysis using SPSS (Statistical Package for Social

Science) is the method of analysis chosen for this research. It is
used to measure the scale of agreement and usage that have
been scaled by the respondents in the questionnaire survey,
(Ibrahim Atan Sipan, 2003)

Frequency analysis is an analysis to determine the total of the

score in each factor. The most important factor will get highest
score. The total score will be divided with the total respondent
to get the mean score. This is a simple analysis technique,
which depend on how many times the subject take place,
LIKERT SCALING ANALYSIS

Likert Scaling technique was introduced by Densis

Likert. In this technique, the respondents have to give
their opinion into number scale. Likert scalling also was
known as Summated Scale, which it will sum up all the
respondents to a large number (Aaker & Day, 1990 via
Nadila 2006)

The scaling used to measure the agreement and usage

level by the respondent. It is divided into five integers
i.e. 1-5.
Based on arrangement of all effect, index range and index
must be calculated for measure the agreement each effect.
Formula for range of index and index (Lake, 1979 in Buang
2001 in Aziatie Abd Aziz 2003) :-

Range of Index = Highest Mean Score - Lowest

No. of Scale

Index = Range of Index + Mean score

 FIRST OBJECTIVE : Data Analysis and Findings

FREQUENCY ANALYSIS

VARIABLES HIGHEST
PERCENTAGE (%)
Etnic Malays 86%
Gender Male 64%
Age 36-50 years 30%
Ownership of Transport Yes 74%
Types of Transport Car 68%
Purpose to Central Town Workplace 62%
Frequency Using Own Transport More than 5 days 60%
perweek
 70
60

Peratus (%)
50
40
30
20
10
0
Hari Ahad Isnin Selasa Rabu Khamis Jumaat Sabt u

The most congested day at city centre.

Time No. < dari 1 hours 1-2 hours 2-3 hours Total
Morning Frekuensi 18 29 3 50
Peratus% 36 58 6 100%
Afternoon Frekuensi 13 31 6 50
Peratus% 26 62 12 100%
Evening Frekuensi 16 26 8 50
Peratus% 32 52 16 100%
Night Frekuensi 44 6 - 50
Peratus% 88 12 - 100%
Duration Estimate to city centre
Residence Distance to Central Town Frequency Percentage

Tampoi 4km-8km 17 34%

Singapura 25km-30km 2 4%
Segamat 100km-120km 2 4%
Batu Pahat 180km-210km 3 6%
Bandar Baru Uda 5km 2 4%
Gelang Patah 45km-50km 4 8%
Larkin 5km-10km 14 28%
Skudai 20km -25km 6 12%
Total 50 100%
 Likert Scaling (Part A-Visitors)
Variables as effect of traffic congestion
No Variables 1 2 3 4 5 Total Mean
Score Score
1 Safety Road 0 5 22 16 7 175 3.50

2 Noise Disturbance 0 0 16 23 11 195 3.90

3 Air Pollution 0 3 9 27 11 196 3.92
4 Lack of Parking Space 0 5 2 12 31 219 4.38
5 Easement to visit central town 0 13 7 25 5 172 3.44
6 Rate of Accident 2 5 18 20 5 171 3.42

7 Waste of Time 0 11 6 20 13 195 3.90

Total Score = ∑ ( Score x No of score choices)

= (1x0) + (2x5) + (3x22) + (4x16) +(5x7)
= 175

Mean Score = Total Score/ Total of Respondent

= 175/50
= 3.50
 Scale Index Calculation Index Range

Strongly Not Serious 3.412 + 0.192 3.42-3.612

Not Serious 3.612 + 0.192 >3.612 – 3.804

Moderately Serious 3.804 + 0.192 >3.804- 3.996

Serious 3.996 + 0.192 > 3.996 – 4.188

Strongly Serious 4.188 + 0.192 > 4.188 – 4.38

Based on arrangement of all effect, index range and index must be calculated for
measure the agreement each effect.

Formula for range of index and index (Lake, 1979 in Buang 2001 in Aziatie Abd Aziz)
For example index for strongly not serious;

Range of Index = Highest mean score (4.38) – Lowest (3.42)

No. of Scale (5)

Index = Range of Index (0.192) + Mean score (3.42)

= 3.612
Index scale No Variables Mean Score

4.188-4.38 1 Less of Parking Space 4.38

(Strongly Serious)
(3.804-3.996) 2 Noise Disturbance 3.90
Moderately Serious
3 Air Pollution 3.92

4 Waste of Time 3.90

(3.42-3.612) 5 Safety Road 3.50

Strongly Not Serious
6 Easement to Visit Central Town 3.44
7 Rate of Accident 3.42
 FINDINGS
4 serious factor as the impact of traffic congestion :
-Less of Parking Space
-Noise Disturbance
-Air Pollution
-Waste of Time

Strongly not serious factor

-Easement to visit central town

Even though these factors are serious factors as an impact of traffic

congested, but its discourage visitors to do their activities at city centre.
So, its showed that decreased in quality access isn’t a factor that consider
by visitors to do their activities.
 SECOND OBJECTIVES : DATA ANALYSIS AND FINDINGS

FREQUENCY ANALYSIS

Analysis on Business Activities

VARIABLES HIGHEST
PERCENTAGES(%)
Types of Business Services 56%

Period of Business Less than 10 years 60%

Intend To Move No 80%

Reason on Move Rent is Higher 60%

Frequency Degrees Visit “on peak hours’ Very Encouraging 72%

Frequency Degrees Visit During “off peak hours’ Encouraging 40%

 45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Ahad Isnin Selasa Rabu Khamis Jumaat Sabt u

The Most Congested Day at City Centre

120%
Bilangan Responden

100%
80%
60%
40%
20%
0%
7.00- 8.00- 9.00- 10.00- 11.00- 12.00- 13.00- 14.00- 15.00- 16.00- 17.00- 18.00- 19.00- 20.00- 21.00-
7.59 8.59 9.59 10.59 11.59 12.59 13.59 14.59 15.59 16.59 17.59 18.59 19.59 20.59 21.59
Masa 24 jam

Critical Time “Peak Hours” at City Centre

CROSSTABULATION ANALYSIS

REFER TO APPENDIX A & B

Likert Scaling (Part B - Retailers)
Variables as effect of traffic congestion

No Variables Total Mean

Score Score

1. Safety Road 67 2.68

2. Noise Disturbance 80 3.20

3. Risk on Products Distribution 78 3.12
4. Air Pollution 91 2.48
5. Lack of Parking Space 62 3.64

6 Easement to Works 66 2.64

7. Rate of Accident 67 2.68

Scale Index Index Range
Calculation

Strongly Not Serious 2.48+0.232 2.48-2.712

Not Serious 2.712+0.232 >2.712-2.944

Moderately Serious 2.944+0.232 >2.944-3.176

Serious 3.176+0.232 >3.176-3.408

Strongly Serious 3.408+0.232 >3.408-3.64

Based on arrangement of all effect, index range and index must be calculated for
measure the agreement each effect.
Formula for range of index and index (Lake, 1979 in Aziatie Abd Aziz) :-

For example index for strongly not serious;

Range of Index = Highest mean score (3.64) – Lowest (2.48)

No. of Scale (5)

Index = Range of Index (0.232) + Mean score (2.48)

= 2.712
Index scale No Variables Mean Score

3.408-3.64 1 Lack of Parking Space 3.64

(Strongly Serious)

3.176-3.408 2 Sound Pollution 3.20

Serious
3 Risk on Distributed Product 3.12

(2.48-2.712) 5 Safety of User Road 2.68

Strongly Not Serious
6 Comfortable to Visit Central Town 2.64

7 Rate of Accident 2.48

FINDINGS :
Likert Scaling ;
Based on the result of research analysis, it can be seen that traffic
congestion has a serious effect to the risk of distribution retail
goods, noise disturbance and lack of parking space. However, these
effect doesn’t ruin the retailers easement in doing their work.
Cross tabulation Analysis ;
The result of the research show that the frequent visit during
peak hours is mainly towards has a positive effect to the
business activities. Its also show that the frequent visit
during peak hours is mainly towards services business
(40.2%). Most of the retailers (66.6%) doesn’t intend to
move even though they have to bear with the higher rental.
This is because their business income is very profitable even
located at congested areas.
 DATA ANALYSIS AND FINDINGS (3rd OBJECTIVE)

CROSSTABULATION ANALYSIS
To examine whether traffic congested have or haven’t relationship with rentals of ground floor
shop houses, cross tabulation analysis was applied. The rentals value cross with business
activities during “peak hours” and frequent degrees of visitors during “peak hours”

PLEASE REFER APPENDIX C

 Traffic volume and rentals at city centre of Johor Bahru

Jalan Traffic Volume Rentals of Ground Floor Shophouses

Jalan Wong Ah Fook 60,000-80,000 RM7,000-RM15,000

Jalan Meldrum 20,000-30,000 RM5,000-RM9,000

Jalan Storey 5,000-10,000 RM1,800-RM3,000

Jalan Trus 10,000-20,000 RM3,000-RM4,500

Jalan Ungku Puan 20,000-30,000 RM6,000-RM8,500

Sources ; Rancangan Struktur Majlis Bandaraya Johor Bahru (Pengubahan Kedua 1997) , Laporan Pasaran Harta (2005)
dan Kajian Lapangan
Nota : isipadu kenderaan adalah bagi setiap 16 jam dua hala
Level of Rent Frequency Degrees of Visitors “On Peak Hours“ Total

Very encouraging Encouraging Moderately Encouraging Not Encouraging

<RM3,000 0 0 1 1 2
0% 0% 33.3% 100% 8%

RM5,000 0 1 0 0 1
RM7,000 0% 33.3% 0% 0% 4%

RM7,001 2 0 2 0 4
RM9,000 11.1% 0% 66.7% 0% 16%

RM9,001 7 1 0 0 8
RM11,000 38.9% 33.3% 0% 0% 32%

RM11,001 7 1 0 0 8
RM13,000 38.9% 33.3% 0% 0% 32%

RM13,000 2 0 0 0 2
RM15,000 11.1% 0% 0% 0% 8%

Jumlah 18 3 3 1 25
100% 100% 100% 100% 100%
 FINDINGS
The traffic congestion factor which is decline the level of
accessibility of visitors to retail premises doesn’t reduce the value
of commercial property. This can be seen through the relationship
between the frequency of visitors during peak hours with the
rental value of the premises.

Retail premises which receive very encouraging visits has the

highest level of rental namely around RM9,000-RM13,000.
Compared to premises which receive moderately encouraging and
encouraging visits, its level rental is much lower which is
RM7,000-RM9,000 and not less than RM3,000.

The factor on why such premises received higher visits with

higher rental value is that the premises are easily noticeable due to
its location on the main road such as Jalan Wong Ah Fook
 Even though this road is highly congested, it doesn’t
reduce the value of the commercial properties in that
area, but the level rental is much higher compared to
other roads that are less congested.
 CONCLUSION
• In conclusions, the findings revealed that
there is no congestion effects on
decreased property value due to low
access. This is because traffic congestion
make the rentals value of shop house
increased at city centre of Johor Bahru.
 RECOMMENDATIONS

RECOMMENDATIONS FROM FINDINGS

To improve availability the road circulations at central town of
Johor Bahru
To built up more commercial properties at suburban of central
town.

RECOMMENDATIONS TO FUTURE STUDY

Effect of traffic congestion on residential values
Functions of land use planning to develop efficient transportations
system