ANALYSIS OF MICRO - FACTORS AFFECTING LAND VALUES IN SINGAPORE

Abstract

There are mainly five categories of factors which will affect the value of a parcel of land. These include the institutional characteristics of the site; the physical characteristics; the accessibility characteristics; the environmental characteristics; and finally the availability of public services around that site. This dissertation is essentially an empirical study which attempts to examine the relationships between land value and some micro factors from these categories. Special attention is focused on the relationships between lot size, location, land-use zoning, site frontage, front-footage and the spatial pattern of land values. The results suggested that land-use zoning, with regard to the permitted use of land on a site, is an important factor in the determination of land values. This is particularly so for land which are zoned for commercial use. The location of a site from the Central Business District is generally considered to be a unique characteristic of the site. However, the results show that while this factor is significant, it has declined in importance with the improvement of the transportation network and the decentralisation of activities from the city. The results also show that frontage and front-footage are influential in the variation of land values. Contrary to expectation, the lot size, plot ratio and corner influence on a site are unimportant factors in determining the land value pattern. The study also discussed some macro factors which are influential in determining land values. The factors discussed are demand and supply forces, economic and political condition of the country, linkages available to a site, development potential and the Urban and Redevelopment Authority Sale of Sites programme. These factors probably account for the remaining portion of the unexplained land value variations.