Literature Review: Urban Cluster as Determinant Factor to Land Value Variation in Real Estate Market

Abstract

In the context of real estate, the land is considered as the base element which can be further developed into a sale product and offered in the market at certain value. The word ‘value’ in the real estate market can change quite easily, likewise with land values. Land value has many determinants, with one of the most influencing factors is location. A city is a place for humans to do activities that are always changing and developing. Any changes that occur in the urban structure will definitively affect all the elements in it, including environmental and surrounding conditions. The development of a city is strongly influenced by urban economic activities in which they have the power to change the urban structure spatially, one of which is the development of urban clusters. This study will discuss/examine the previous literature in-depth on how a land value can vary, what factors and proxies are known to affect land value, and look for their relationship to changes/developments in urban conditions.