The Relationship of Land Assembly and Prices of Cost Equivalent Land in the Equalization of Land Rights Act

Abstract

Since the first revision of the Equalization of Land Rights Act in 1958, urban land readjustment has become a dominant strategy and tool for urban land development. A crucial factor affecting financial self-liquidation of urban land readjustment is the distribution of cost-equivalent land, which is the land used to pay for public facilities within urban land readjustment regions. Cost-equivalent land can be used to fund land readjustment through market bidding. Studies on land prices have revealed that related factors, such as land-use intensity, individuals, and regions, affect the price of land. Studies have begun to focus on whether land transactions in urban land readjustment are similar to normal land transactions. The present study investigated the influence of land assembly on the land prices of cost-equivalent land and identified other factors by estimating hedonic price functions. The results indicate that general characteristics and land assembly are land price determinants. General characteristics, including the floor area ratio, width of the adjacent road, width of the base, depth of the base, street corner conditions, and bidding time, demonstrated a significant effect on the bidding price of cost-equivalent land. Fragmentation of the ownership of adjacent land had little effect on bidding price. Governments handling land allocation operations should consider the location of land. In addition, the aforementioned influencing factors are crucial and can lead to land having higher value.