Integration of Market Price Comparison Approach and Income Capitalization Approach in Urban Land Valuation

Abstract

Land is one of the economic goods. The high demand for land while the land supply is fixed, causes the increase in land prices to be out of control. Land is closely related to the cadastral system. The cadastral system is the driving force behind the operation of a land administration system that integrates the functions of land tenure, land value, land use, and land development. A complete cadastre has a component in the form of a cadastral map that is connected to juridical data records, including land values and their designations. Land value is the product of land valuation. Land valuation consists of several approaches, namely market price comparison approach, cost approach, and income capitalization approach. Estimating urban land values requires rapid and accurate land valuations. This research integrates the market price comparison approach and the income capitalization approach. Geostatistical analysis is applied in land value modeling. The resulting mathematical model of land value is expected to reflect the actual value