Spatial structure of residential property-value distribution in Beijing and Jakarta

Abstract

An understanding of metropolitan spatial structure in property-value distribution is essential for international real-estate decisionmaking, yet knowledge accumulated in this area is limited because of data and methodology constraints. The author extends knowledge of the area by examining the spatial distribution pattern of housing prices (instead of the much-studied population and employment distributions) and two Pacific-Asia metropolises (rather than US cities or other cities in developed countries). Data were collected in Beijing, China, and Jakarta, Indonesia, from field reconnaissance surveys and interviews in 2000 and 2001. Digital terrain models were constructed for visualizing the property-value distributions. Profiles of the three-dimensional surfaces were extracted and curve-estimation statistics were used in a series of systematically selected geographical sectors in order to assess the intrametropolitan spatial variations. The findings suggest that neither of the two cities resembles a smooth surface featuring a cone, or the roof of a circus tent. Rather, Beijing's residential property value surface looks like a castellated rooftop, whereas Jakarta's resembles two television towers. The dynamic price terrains in the two cities are shaped by many factors, including their physical settings, history, and institutional frameworks. Intrametropolitan variations in property prices were remarkable in both cities. Properties in each of the systematically defined geographical sectors and in the history-development core show unique profiles and curvefitting statistics different from any other. The findings add to the existing generalizations and modeling exercises in the study of the internal structure of cities.