Factors Affecting the Price of Cost-Equivalent Land: Application of Hierarchical Linear Modeling

Abstract

This study examined 19 urban land consolidation areas in Kaohsiung City, Taiwan, as well as cost-equivalent lands auctioned off from 2013 to 2019. Hierarchical linear modeling was used for analysis, in which the Level 1b variables pertained to cost-equivalent land and the Level 2 variables pertained to land consolidation areas. According to the empirical results, in terms of the estimation results, there were significant differences between the mean price of each urban land consolidation area. Therefore, HLM is suitable for the subsequent analysis. A total of 76.7% of the differences in the mean land consolidation area price were contributed by the differences between the land consolidation areas. Therefore, it is important to consider the differences generated by the particular features of each area.