The Valuation of Urban Land: Comparison and Critique of Three CAMA Methods

This paper uses valuation data from Quotable Value New Zealand to examine changes in the value of the rural land in New Zealand between 1989 and 2003. The value of rural land reflects the profitability of agriculture as well as the returns to alternative land uses, and has a large impact on the prosperity of rural areas. The paper highlights the importance of both changes in land use and changes in the value of land in different uses in explaining overall changes in land values. It also examines the relationship among productive characteristics of the land, the local climate, various local amenities, and changes in land values and land use to better understand what factors have been driving overall changes in the value of rural land across New Zealand. We find that the real value of rural land in all uses increased substantially over the years being examined. Land use in rural areas also changed considerably during this period, but these changes in land use were essentially uncorrelated with changes in land values. Our regression results indicate that rural land values increased the most in less populated areas with good climates and local amenities. Initial land use also plays an important role in explaining the variation in changes in rural land values with greater increases in land values found in areas with more land initially devoted to urban uses and commercial forestry, and less land initially devoted to horticulture and lifestyle uses.

This paper uses valuation data from Quotable Value New Zealand to examine changes in the value of the rural land in New Zealand between 1989 and 2003. The value of rural land reflects the profitability of agriculture as well as the returns to alternative land uses, and has a large impact on the prosperity of rural areas. The paper highlights the importance of both changes in land use and changes in the value of land in different uses in explaining overall changes in land values. It also examines the relationship among productive characteristics of the land, the local climate, various local amenities, and changes in land values and land use to better understand what factors have been driving overall changes in the value of rural land across New Zealand. We find that the real value of rural land in all uses increased substantially over the years being examined. Land use in rural areas also changed considerably during this period, but these changes in land use were essentially uncorrelated with changes in land values. Our regression results indicate that rural land values increased the most in less populated areas with good climates and local amenities. Initial land use also plays an important role in explaining the variation in changes in rural land values with greater increases in land values found in areas with more land initially devoted to urban uses and commercial forestry, and less land initially devoted to horticulture and lifestyle uses.

Examining Changes in the Value of Rural Land in New Zealand between 1989 and 2003

Valuing Urban Land with Land Residual and Option Value Methods: Applications to House Price Dynamics and Volatility

Hedonic modeling is commonly used in land and property value estimations in an attempt to identify the impact that various attributes have on the market value of that property. The purpose of this study is to examine the factors contributing to land value of agricultural, forest, and residential properties in Yamhill County, as part of the Spatial Ecosystem Services Analysis, Modeling, and Evaluation (SESAME, http://www.pdx.edu/ecosystem-services/) project. This paper discusses the process and preliminary results of the development of hedonic models that will be utilized for predicting land value changes under future land conversion scenarios. Applying the models to future scenarios will provide insight into the effect that land conversion will have on market value of land in Yamhill County, in order to elucidate one component of the total land value in the area. Numerous studies have performed hedonic modeling in order to provide greater understanding of the non-market ecosystem service values that are contributing to land values, and it is necessary to have baseline information on the value of environmental attributes in order to identify potential policy and planning activities that can preserve these values. Current methods for assessing the value of non-market ecosystem services are mostly in development stages, with few widely-accepted approaches. Utilizing hedonic modeling and other revealed preference techniques may provide valuable insight into the contribution of nonmarket goods and services, in order to ensure they are adequately accounted for in planning and management decisions. UNDERSTANDING THE DRIVERS OF LAND VALUE ii

According to the Regional Spatial Plan (RTRW) for the City of Semarang in 2011–2031, the area around Simpang Lima is part of City Area 1, with a function as the Central Business District (CBD). Losch (1954) suggests that the value of a parcel of land tends to decrease if it is away from the central business area. Therefore, this study investigated the relationship between changes in land value and the presence of CBD around the Simpang Lima CBD. The methods employed in this study are the calculation of the Average Indicated Value (NIR), analyzing changes in land value in 2012–2023, and the Geographically Weighted Regression (GWR). Based on an analysis of changes in land value for 2012–2023, it shows that the highest change in land value zone for 2012–2018 was in zone 166, with an increase of IDR 20,446,000, and the lowest change in land value was in zone 163, with a decrease of IDR 3,956,000. Meanwhile, the highest change in land value zone for 2018–2023 was in zone 84, with an increase of IDR 28,852,000, and the lowest change in land value was in zone 37, with an increase of IDR 217,000. The results of statistical tests using GWR show that the influence of the distance from the CBD on changes in land values in 2012–2023 is 84%, indicating a high correlation. The results of the T-test performed on each variable indicate that the variables significantly influencing changes in land value are shopping centers and road widths. Shopping centers have a negative correlation. On the other hand, the road width is positively correlation.

Separating urban land and structure values is important for national accounts and for analysis of real estate risk over time. A large part of the literature on urban land valuation uses the land residual method, which relies on the assumption that structures are easily replaced. But urban land value depends on accessibility to nearby land uses, implying that infrastructure and the slowly changing built environment are the most important components of land value. Investments in structures are only slowly reversible, implying that land and structure function as a bundled good whereas land residual theory severs the connection between land value and structure value over time. We develop a simple theoretical model that includes option value and compare to a nested land residual model before and after a shock to values. Cross-sectionally our model shows that land residual theory overestimates structure value. Over time almost all of any change in property value is allocated to land residuals. Data from Maricopa county, AZ, 2012–2018 strongly support option value models when nested within a general model that also includes land residuals. FHFA estimates use entirely different cost estimation methods: our analysis of FHA data suggest that our conclusions generalize to the U.S. as a whole, and that high and rising land value ratios over 50 years (the “hockey stick” pattern found in the literature) are likely an artifact of the residual model.

Value uplift from transit investment-Property value or land value? A case study of the Gold Coast light rail system in Australia

Land values are important considerations for land use and development planning. Using data on land values recorded at the Government Valuation Department (Central regional office), this study investigated factors affecting land values of Kandy municipal area for the period 1980 to 2015, with a particular focus on testing the impact of zoning and archaeological regulations on land value. To derive inferences, we estimated hedonic-type models, which is a standard technique for analysis of land and property values, on a sample of 169 randomly selected land parcels in Kandy municipal area. Among the key findings, we observed that the impact of urban development zoning law on the value per perch was LKR 1,085,075 while the impact of archeo02logical regulation on the value was LKR 322,420 per perch within the municipal limits. Both zoning regulations and carpet road access created robustly positive impacts on land values, across several specifications including a model that included land values adjusted for inflation.

The digital economy is fundamentally transforming urban landscapes by disrupting traditional relationships between land use and land value. This scoping review aims to examine how digital transformations alter urban activities, human behaviours, and mobility patterns, and to assess the subsequent impacts on land use planning and land valuation frameworks. Following PRISMA guidelines, Scopus, Web of Science, Google Scholar, and ProQuest databases were systematically searched for peer-reviewed articles published between 2019 and 2024. Inclusion criteria comprised empirical studies, theoretical papers, and case studies examining digital economy impacts on urban land use or land value. Grey literature, non-English publications, and studies without clear urban spatial implications were excluded. The data were synthesised using bibliometric analysis and thematic analysis to identify patterns of disruption across three domains: urban activities, behaviours, and mobility. Of the 512 initially identified articles, 66 studies met the inclusion criteria. The evidence demonstrates significant geographic bias and methodological limitations, including the scarcity of longitudinal studies tracking actual land value changes and inconsistent metrics for measuring disruption intensity. Despite these limitations, findings indicate that the digital economy is decoupling land value from traditional determinants, such as physical proximity to services and employment centres. These transformations necessitate fundamental revisions to urban planning frameworks, land valuation models, and regulatory approaches to ensure equitable and sustainable urban development in the digital age.

Abstract. Evaluating residential property prices or land values is quite important for urban planning and government taxation as well. But it is generally difficult to predict land values accurately due to the dynamics of land prices, particularly in urban areas. Urban land values are mostly affected by natural environmental changes and various social and economic factors (Colwell & Munneke, 1997). Also, such socio economic factors are influencing both temporal and spatial aspects of land value, and therefore spatio-temporal clusters of land price changes will show local variations of land values very well. Specifically, the spatio-temporal hot spots might indicate highly increasing demand of lands in the urban area. In those areas, regulation against real estate speculation must be needed from the public perspective because such areas might impact on other area land prices and ultimately national economic status. Therefore, analyzing spatio-temporal aspects of the land price is essential for efficient urban planning and policy making. In this study, we attempt to detect spatio-temporal hot spots which are constantly increasing the value of residential property among real estate. Although there are many types of differently designated lands including such as commercial, agricultural, and lands for other usage, we focus on the residential lands to estimate land values in this research. The reason for this is because residential house price is substantially increasing and becoming one of sensitive issues of Seoul house market. Therefore, poor people or younger generation cannot afford such high housing expenses in Seoul. Also, house transaction data is much larger than other land usage data, and therefore it can be utilized for estimating land values more precisely. From 2011 to 2016, over 1.8 million housing transactions of lease and sale happened in Seoul. This big data on housing lease and sale transactions indicates the value of each location where the transaction occurred. Specifically, we utilize spatial interpolation method including Kriging and differential local Moran’s I approach based on housing transaction data in Seoul. Housing transaction data includes every transaction for sales and leases of the house for the particular period. By applying these methodologies, we can visualize spatio-temporal clusters of highly increasing land prices and interpret significant clusters in terms of social factors. In fact, land price distribution has been widely discussed associated with smart growth and urban development (American Planning Association, 2002; Kaiser et al., 1995). However, most studies have focused on urban development and expansion, rather than the changes in the land price. Moreover, many studies have applied remote sensing approach to analyze urban land expansion (Xiao et al., 2006; Magigi & Drescher, 2010). Notably, Hu et al., (2013) applied IDW to interpolate and estimating land prices with land samples. However, IDW has a shortcoming to interpolate the value which is distant from the sample points. In addition, even studies focusing on the land price have dealt with only one temporal period. From this research gap, we use the ordinary Kriging and differential local Moran’s I to detect and forecast local hot spots of land price changes. This research has conducted the following steps. At the first step, several transactions for the residential area are consolidated into a single land value indicator. Suppose that the residential rent consists of three factors that are housing price (P), deposit (D), and monthly rent (R). Each factor can be transformed into the value index (V) by the transformation formula below. After calculating the land value index from the transformation, the global trend of the value index is overlaid on each period. Figure 1. Shows the mean value index increased from 2011 to 2016. Then, square cells regularly spaced by 100 meters are generated over study area to perform the ordinary Kriging. After the ordinary Kriging, the land value index is assigned to each grid cell. Finally, differential local Moran’s I index is calculated based on the difference that value index change between each year. V = 0.75 * 0.005 * P + 0.005 * D + R As a result, the global trend of land value changes from 2011 to 2016 in Seoul is shown in Figure. 1. The mean value index is increasing constantly. The spatio-temporal hot spots of land price change are found where the value index increment exceeds the average value index increasing over Seoul. As a result, seven clusters are detected (Figure. 2).

The high demand for land in the area around the MRT station causes changes in land prices that tend to increase. These conditions can be the cause of changes in land use. This study used high-resolution images in 2021 and land use maps in 2014 and 2021. The data is used to analyze land-use changes. Meanwhile, the analysis of land value changes uses the 2014 land value zone map and the 2021 land value zone map obtained from the results of a field survey using the mass land valuation method. From these results, an analysis of the effect of changes in land use was carried out on changes in land value in Menteng District as a result of the construction of mass rapid transit phase 1. The results showed that there was a change in land use. The total area of ​​land change was 18.604 hectares or 2.879%. The details of the changes are trade increased by 1.362%, settlements decreased by 1.938%, hotels increased by 0.071%, lakes increased by 0.114%, vacant land decreased by 0.006%, parks increased by 0.368%, PT regularly increased by 0.485%, sports facilities decreased by 0.368% and government offices decreased by 0.088%. The highest price increase was Rp110,218,903/m2 because there was a change in land use from regular housing to trading areas. The largest increase in land value seen from the dominant land use characteristics was in commercial or trade areas, which was 187%, with an average increase in value of Rp. 76,170,137/m2.

Public open spaces play a key role in urban environments, providing recreational opportunities, enhancing the quality of life, and contributing to the overall attractiveness of a neighborhood. Newly developed public open spaces on surrounding land value changes are important for urban planning and development. Within the last 10 years period most open spaces developed in the Colombo suburban area and there are clear land value changes in those areas. Bellanwila-Atthidiya Waras Ganga open space is one of the most attracted open space in the Colombo suburbs and significantly surrounding land values are changed after the project. This research aims to examine the effect on land values in surrounding area due to this project and research devotes a quantitative approach, using GIS based geo statistical analysis. Land value data, including sales transactions and property assessments, will be collected from relevant government agencies and real estate databases. The collected land value data was used to create geospatial maps using ArcGIS 10.8 spatial interpolation. Various proximity factors and demographic characteristics affected to change land values in this area, also considered for this analysis. Study results indicates, there is a significant relationship between residential land value changes in the lands surrounding public open space and it is 7.2% impact on land value changes The findings of this study provide valuable insights into the relationship between public open spaces and land values in the Colombo suburban area. The results are useful for urban planners, policymakers, and real estate developers about the potential economic benefits associated with public open spaces.

Investment in public transportation is an essential solution to reduce car traffic and improve transport sustainability in a high-speed urbanised context. In an age of global fiscal restraint, the re-emergence of a bus-based transport mode, Bus Rapid Transit (BRT), has generated great interest from urban planners and governments, since it provides high quality transit services, with less expenditure and flexibility advantages compared with other modes. On the other hand, researchers and practitioners have shown interest in the value BRT can add to urban real estate prices, since Land Value Capture (LVC) is increasingly seen as a potential way to finance transport projects.However, the extent to which the improved accessibility due to BRT can be capitalised into property values (and therefore underlying land value) remains controversial and has not been studied comprehensively. This research provides an enhanced understanding of BRT’s impact on property values, by drawing on the BRT system in Brisbane, Australia.This thesis documents the first meta-analysis of 23 empirical studies that estimate the amount of land value uplift (LVU) that is attributable to BRT. The results identified several factors that were found to have a statistically significant impact on estimated LVU from BRT investment, including the BRT system life cycle maturity, the geographical location, the type of research area (land or property), the reported value (sale /rental /assessor price), the distance to the BRT station and the method used for analysis.This research contributes to the literature by adding the evidence of BRT impact from the city with low density, high car ownership and limited variation in socio-economic status, as in the country context of Australia, using the South East Busway (SEB) in Brisbane, as a case study. The results show there is a positive effect of access to SEB stations, but a more substantial negative effect of immediate proximity to the SEB corridor. The area with the strongest value-added effect is approximately 1600m to the BRT corridor, which demonstrates the convenient feeder line services in the open-system SEB network and the Park-and-Ride services available in BRT stations could contribute to a wider appreciation area of SEB accessibility.Few relevant studies in this field consider that a BRT operation mechanism could impact the capitalisation effect. To better understand BRT operation, this research employs a visual analytic approach to determine how Brisbane’s open-system BRT facilitates daily mobility, based on smartcard data. Web Graphics Library (WebGL) techniques are employed to produce 3D web maps that visualise the trajectories of all the BRT passengers, to provide an overview of catchment areas and passenger volumes. The results show that feeder line stops are important for increasing network accessibility for Brisbane’s open-system BRT. This validates that feeder line stops should be considered when examining the BRT property value impacts.A hypothesis is then formulated that the improved accessibility, due to an open-system BRT network, results in higher property values within feeder line catchment areas. Feeder line stops were selected and included as part of the open-system BRT, based on analysis of smartcard data. A Geographically Weighted Generalized Linear Model (GWGLM) was used to examine the property values impacts. The results identified property value uplift of up to 1.64% for every 100m closer to feeder bus stops with frequent services in western and eastern Brisbane suburbs, which confirms the hypothesis.This research contributes to the literature relating to the method of predicting property value uplift for future infrastructure. Although many LVU studies have been motivated by LVC implementation, current studies are less than helpful for practical LVC implementation as there is a knowledge gap in how to estimate the LVU prior to the transport project. This is important as a pre-investment reference to formulate LVC strategies. The prediction method proposed in this study has the potential for broader application in prediction of property value uplift from future infrastructure across other urban planning contexts.In summary, this research contributes to an understanding of the impact of BRT on property values and it is also significant in advancing the practice of LVC strategy for raising public transport funding through land and property value gains.

A strong need exists to increase the knowledge and recognize the values of neighborhood services. This paper makes an attempt to examine the impact of neighborhood services on land values, through analysis based on results obtained from multi linear regression analysis. This case study was done in area of dense urban settlement to check the consequence of neighborhood services through the hedonic pricing model base variables which include the structural, locational, community and neighborhood services. The regression coefficient was checked at (p < 0.05) level of significance for each variable. The primary data was collect through the questionnaire filling by random sampling and Punjab Urban Gazette was used for the verification of land values in study area. The results found a valuable potential on land and property values of neighborhood services through the regression analysis results express through R (0.926), R2 (0.856) and coefficient tables to represent the effect of each individual variable on property and land values. Every individual variable play role in defining the values of land and property based upon its utilization such as larger the structure of a property, more the covered area, larger size of a property more the land area higher price. Similarly, for locational factor study in geography, a piece of land adjacent to the road have high land values 50–70% compare to those located at distance. Very less attention has been paid on such issues in the world due to lack of effective urban planning and research on such crucial issues. If empirical studies on such issue has been done, effective way can be obtained for urban planning.