LAND VALUE

DEPARTEMEN PERENCANAAN WILAYAH DAN KOTA

FAKULTAS ARSITEKTUR, DESAIN, DAN PERENCANAAN
INSTITUT TEKNOLOGI SEPULUH NOPEMBER SURABAYA
 NILAI LAHAN / LAND VALUE

1
 NILAI LAHAN
 NILAI SOSIAL, memandang pemanfaatan lahan
sebagai fasilitator pola kegiatan dan aspirasi sosial
yang diinginkan
 NILAI PASAR, memandang pemanfaatan lahan sebagai
media keuntungan dari property yang dapat dibangun
 NILAI EKOLOGIS, memandang pemanfaatan lahan
sebagai ancaman potensial terhadap lingkungan yang
harus dikurangi
 NILAI LAHAN / LAND VALUE

2
 NILAI SOSIAL
 Urban Form
 Vitality
 Sense
 Fit
 Access
 Control
 Efficiency
 Justice
 Activity System
 Neighborhoods
 NILAI LAHAN / LAND VALUE

3
 NILAI PASAR
 Correcting market failure
 Redistributing wealth and power
 Public private partnership
 NILAI LAHAN / LAND VALUE

4
 NILAI EKOLOGIS
 Environmental assets
 Environmental integrity
 Carrying capacity, a measure of capability
 Land suitability, a measure of desirability
 Sustainable development, a measure of feasibility
 Nature preservation
 ILUSTRASI LAND VALUE

Industrialization brought about the mass transit system,

which was built like spokes from the outer ring to the
center of the city,
the city core became the area with the highest
accessibility, desirability, and land prices;
areas along the transit spokes second,
and the areas between the spokes the least desirable
 ILUSTRASI LAND VALUE

Only the richest and biggest companies could afford to

located in the city core
Industries, stores, and high-density apartment complexes
developed along the mass transit routes to lower
transportation costs
Low density residential areas filled in the locations within
the spokes
 ILUSTRASI LAND VALUE

Central Business District (CBD):

The nucleus (“downtown”) of a city, where retail stores,
offices, and cultural activities are concentrated,
mass transit systems converge,
and land values and building densities are high
LAND VALUES AND THEIR ATTRIBUTION
1 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

CASE 1 (COMMODITY A)
Selling price = $ 100
Production cost = $ 50
Transport cost / mile = $ 5
Profit = Selling price – Production cost – Transport cost
2 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

CASE 2 (COMMODITY A)
Selling price = $ 125
Production cost = $ 50
Transport cost / mile = $ 5
Profit = Selling price – Production cost – Transport cost
3 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

CASE 3 (COMMODITY A)
Selling price = $ 100
Production cost = $ 50
Transport cost / mile = $ 10
Profit = Selling price – Production cost – Transport cost
4 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

CASE 4 (COMMODITY B)
Selling price = $ 150
Production cost = $ 75
Transport cost / mile = $ 10
Profit = Selling price – Production cost – Transport cost
5 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

CASE 5 (COMMODITY C)
Selling price = $ 50
Production cost = $ 25
Transport cost / mile = $ 1,66
Profit = Selling price – Production cost – Transport cost
6 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

COMBINED CASE
Commodity A
Commodity B
Commodity C
7 AGRICULTURE LAND MARKET
(taken from Alonso-theory of the urban land market)

ABSTRACTING THE VIEW OF AGRICULTURAL LAND MARKET

Land uses determine land values, through competitive bidding among
farmers
Land values distribute land uses, according to their ability to pay
The steeper curves capture the central locations
 A MODEL OF LAND VALUE
1
A work by BRIAN BERRY
LAND RENT = LOCATION RENT + AMENITY RENT
A MODEL OF LAND VALUE
(TRANSPORTATION – LAND RENT) 2
A MODEL OF LAND VALUE
(LAND VALUE) 3
A MODEL OF LAND VALUE
(CAPITAL LAND RATIO) 4
A MODEL OF LAND VALUE
(NET POPULATION DENSITY) 5
A MODEL OF LAND VALUE
(URBAN LAND VALUE) 6
A MODEL OF LAND VALUE
(URBAN LAND VALUE) 7
1
VON THÜNEN, ECONOMIC RENT, AND LAND USE

THE WORK BY von THÜNEN (1793 – 1850)

A country with no connection with the outside world
A metropolis is located within unbounded plain
Uniform soil and climatic characteristic
Transport possibilities are equal in any direction
Costs of transportation increase linearly with distance
The metropolis provides manufactured goods for the rural community
Rural community provides agricultural products for the workers in the
metropolis
All prices are set at the marketplace, which is the metropolis
2
VON THŰNEN, ECONOMIC RENT, AND LAND USE

CASE 1 (WHEAT
COMMODITY)
Transport cost from A
to marketplace is $ 0.40,
A will receive $ 3.60
Transport cost from B
to marketplace is $ 1.00,
B will receive $ 3.00
Transport cost from C
to marketplace is $ 1.50,
C will receive $ 2.50
3
VON THŰNEN, ECONOMIC RENT, AND LAND USE

CASE 2 (VEGETABLES
COMMODITY)
Transport cost from A
to marketplace is $ 1.70,
A will receive $ 4.30
Transport cost from B
to marketplace is $ 4.00,
B will receive $ 2.00
Transport cost from C
to marketplace is $ 5.75,
C will receive $ 0.25
4
VON THŰNEN, ECONOMIC RENT, AND LAND USE

Economic rent curves for three competing land uses

5
VON THŰNEN, ECONOMIC RENT, AND LAND USE

Concentric land-use zones derived from economic rent curve

 ECONOMIC RENT AND LAND USE
IN URBAN ENVIRONMENT 1
The composition of location cost for low-income and high-income
 ECONOMIC RENT AND LAND USE
IN URBAN ENVIRONMENT 2
The location of different urban land uses is related to the accessibility
requirements and ability to pay for land of the different land users
FACTORS THAT CONTRIBUTE TO LAND VALUE

The PHYSICAL ATTRIBUTES of land include quality of location, fertility

and climate; convenience to shopping, schools and parks; availability of water,
sewers, utilities and public transportation; absence of bad smells, smoke and
noise; and patterns of land use, frontage, depth, topography, streets and lot
sizes.
The LEGAL or GOVERNMENTAL FORCES
The SOCIAL FACTORS
The ECONOMIC FORCES

1
FACTORS THAT CONTRIBUTE TO LAND VALUE

The PHYSICAL ATTRIBUTES

The LEGAL or GOVERNMENTAL FORCES include the type and
amount of taxation, zoning and building laws, planning and restrictions.
The SOCIAL FACTORS
The ECONOMIC FORCES

2
FACTORS THAT CONTRIBUTE TO LAND VALUE

The PHYSICAL ATTRIBUTES

The LEGAL or GOVERNMENTAL FORCES
The SOCIAL FACTORS include population growth or decline, changes in
family sizes, typical ages, attitudes toward law and order, prestige and education
levels.
The ECONOMIC FORCES

3
FACTORS THAT CONTRIBUTE TO LAND VALUE

The PHYSICAL ATTRIBUTES

The LEGAL or GOVERNMENTAL FORCES
The SOCIAL FACTORS
The ECONOMIC FORCES include value and income levels, growth and
new construction, vacancy and availability of land. It is the influences of these
forces, expressed independently and in relationship to one another, that help
the people and the assessor measure value.

4
1 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON  Sales of similar, vacant parcels are analyzed,

compared, and adjusted to provide a value indication for the land being
appraised.
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE
ALLOCATION
EXTRACTION
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT
2 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP  Relating a site to a known
standard site. The difference can be expressed as a percentage.This procedure
can be used when their is little value evidence in existence.
LAND RESIDUAL TECHNIQUE
ALLOCATION
EXTRACTION
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT
3 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE  It is assumed that the land is
improved to its highest and best use. All operating expenses and the return
attributable to other agents of production are deducted, and the net income
imputed to the land is capitalized to derive an estimate of land value.
ALLOCATION
EXTRACTION
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT
4 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE
ALLOCATION  Sales of improved properties are analyzed, and the prices
paid are allocated between the land and the improvements.
EXTRACTION
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT
5 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE
ALLOCATION
EXTRACTION  Land value is estimated by subtracting the estimated
value of the depreciated improvements from the known sale price of the
property.
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT
6 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE
ALLOCATION
EXTRACTION
GROUND RENT CAPITALIZATION  This procedure is used when
land rental and capitalization rates are readily available, as in well-developed
areas. Net ground rent (the net amount paid for the right to use and occupy
the land) is estimated and divided by a land capitalization rate.
SUBDIVISION DEVELOPMENT
7 METHODS USED IN APPRAISING LAND VALUE

SALES COMPARISON
PROPORTIONAL RELATIONSHIP
LAND RESIDUAL TECHNIQUE
ALLOCATION
EXTRACTION
GROUND RENT CAPITALIZATION
SUBDIVISION DEVELOPMENT  The total value of undeveloped
land is estimated as if the land were subdivided, developed, and sold.
Development costs, incentive costs, and carrying charges are subtracted from
the estimated proceeds of sale, and the net income projection is discounted
over the estimated period required for market absorption of the developed sites.
 CHANGING URBAN LAND VALUES
1
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
2
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
3
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
4
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
5
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
6
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
7
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
8
Diagramatic representation of urban land values
 CHANGING URBAN LAND VALUES
9
Diagramatic representation of urban land values
1 URBAN LAND VALUES (makkah case)
2 URBAN LAND VALUES (makkah case)