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An Analysis of the Effects of Development-Restricted Areas on Land Price Using Spatial Analysis

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  • Dongkwan Lee

    (Institute of Social Science, Kangwon National University, 1 Gangwondaehak-gil, Chuncheon 24341, Korea)

  • Choongik Choi

    (Department of Public Administration, Kangwon National University, 1 Gangwondaehak-gil, Chuncheon 24341, Korea)

Abstract

The purpose of this study was to estimate the effects of development-restricted areas (DRAs) on land price. The study area used was Goyang city in South Korea, where DRAs occupy a large proportion of the city’s administrative area. To examine the economic impact of the DRA, this study estimated log-linear regression models and calculated the difference between the land price determined within the DRA and the land price of the developed areas within buffers created by using a geographic information system (GIS). The results showed that a designation of DRA decreased land price, and that there was a large difference in the land price between the inner and the outer DRA, with a difference of USD 871/m 2 in the average land price of the study area. These results serve as a reference for policymakers regarding land use in metropolitan areas in the future.

Suggested Citation

  • Dongkwan Lee & Choongik Choi, 2021. "An Analysis of the Effects of Development-Restricted Areas on Land Price Using Spatial Analysis," Land, MDPI, vol. 10(6), pages 1-21, June.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:6:p:660-:d:579070
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