IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v9n31994p353-368.html
   My bibliography  Save this article

A History of Site Valuation Rules: Functions and Empirical Evidence

Author

Abstract

It is commonplace to think of the price of land as an amount per unit of area. This may be inappropriate, because it appears that the value of land increases at a decreasing rate as area increases in some situations, and frontage and depth may affect value differently. Various rules have been developed to aid in the process of estimating site value. This paper describes the functional forms of these rules and provides estimates of the parameters of these rules utilizing historical data. The hypotheses that value is a concave function of both frontage and depth cannot be rejected.

Suggested Citation

  • Peter F. Colwell & Tim F. Scheu, 1994. "A History of Site Valuation Rules: Functions and Empirical Evidence," Journal of Real Estate Research, American Real Estate Society, vol. 9(3), pages 353-368.
    • Handle: RePEc:jre:issued:v:9:n:3:1994:p:353-368
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol09n03/v09p353.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph G. Kowalski & Peter F. Colwell, 1986. "Market Versus Assessed Values of Industrial Land," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 361-373, June.
    2. Paul K. Asabere & Forrest E. Huffman, 1991. "Zoning and Industrial Land Values: The Case of Philadelphia," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(2), pages 154-160, June.
    3. Peter F. Colwell & C. F. Sirmans, 1978. "Area, Time, Centrality and the Value of Urban Land," Land Economics, University of Wisconsin Press, vol. 54(4), pages 514-519.
    4. Brownstone, David & De Vany, Arthur, 1991. "Zoning, Returns to Scale, and the Value of Undeveloped Land," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 699-704, November.
    5. David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
    6. Colwell, Peter F. & Scheu, Tim, 1989. "Optimal lot size and configuration," Journal of Urban Economics, Elsevier, vol. 26(1), pages 90-109, July.
    7. Cannaday, Roger E & Colwell, Peter F, 1990. "Optimization of Subdivision Development," The Journal of Real Estate Finance and Economics, Springer, vol. 3(2), pages 195-206, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Colwell & Henry Munneke, 2009. "Directional Land Value Gradients," The Journal of Real Estate Finance and Economics, Springer, vol. 39(1), pages 1-23, July.
    2. Peter Colwell & Carolyn Dehring, 2005. "The Pricing of Lake Lots," The Journal of Real Estate Finance and Economics, Springer, vol. 30(3), pages 267-283, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colwell, Peter F. & Munneke, Henry J., 1997. "The Structure of Urban Land Prices," Journal of Urban Economics, Elsevier, vol. 41(3), pages 321-336, May.
    2. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    3. Peter Phibbs & Nicole Gurran, 2021. "The role and significance of planning in the determination of house prices in Australia: Recent policy debates," Environment and Planning A, , vol. 53(3), pages 457-479, May.
    4. Landers, Jim, 2006. "Why Don't Enterprise Zones Work? Estimates of the Extent that EZ Benefits are Capitalized into Property Values," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-16.
    5. Hans R. Isakson, 1997. "An Empirical Analysis of the Determinants of the Value of Vacant Land," Journal of Real Estate Research, American Real Estate Society, vol. 13(2), pages 103-114.
    6. Shrestha, Ram K. & Alavalapati, Janaki R.R., 2004. "Effect of Ranchland Attributes on Recreational Hunting in Florida: A Hedonic Price Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-10, December.
    7. Peter Colwell & Carolyn Dehring, 2005. "The Pricing of Lake Lots," The Journal of Real Estate Finance and Economics, Springer, vol. 30(3), pages 267-283, April.
    8. Wen, Lanjiao & Yang, Shenjie & Qi, Mengna & Zhang, Anlu, 2024. "How does China’s rural collective commercialized land market run? New evidence from 26 pilot areas, China," Land Use Policy, Elsevier, vol. 136(C).
    9. Joseph G. Kowalski & Christos C. Paraskevopoulos, 1991. "The Impact of Spatial-Temporal Interactions on Industrial Land Values," Urban Studies, Urban Studies Journal Limited, vol. 28(4), pages 577-583, August.
    10. Nickerson, Cynthia J. & Lynch, Lori, 1998. "Capitalization Of Farmland Preservation Programs Into Farmland Prices," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20877, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Paul K. Asabere & Forrest E. Huffman, 1996. "Thoroughfares and Apartment Values," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 9-16.
    12. Hans R. Isakson & Mark D. Ecker, 2001. "An Analysis of the Influence of Location in the Market for Undeveloped Urban Fringe Land," Land Economics, University of Wisconsin Press, vol. 77(1), pages 30-41.
    13. Jeanty, Pierre Wilner & Kraybill, David S. & Libby, Lawrence W. & Sohngen, Brent, 2002. "Effects Of Local Development Pressure On Land Prices: A Spatial Economic Approach," 2002 Annual meeting, July 28-31, Long Beach, CA 19767, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Arthur C. Nelson, 1985. "Demand, Segmentation, and Timing Effects of an Urban Containment Program on Urban Fringe Land Values," Urban Studies, Urban Studies Journal Limited, vol. 22(5), pages 439-443, October.
    15. Terrence M. Clauretie & Herman Li, 2019. "Land Values: Size Matters," The Journal of Real Estate Finance and Economics, Springer, vol. 58(1), pages 80-110, January.
    16. Hiroyuki Usui, 2019. "Statistical distribution of building lot depth: Theoretical and empirical investigation of downtown districts in Tokyo," Environment and Planning B, , vol. 46(8), pages 1499-1516, October.
    17. World Bank, "undated". "East Asia and Pacific Update, April 2007," World Bank Publications - Reports 33509, The World Bank Group.
    18. Schilling, Brian J. & Sullivan, Kevin P. & Duke, Joshua M., 2013. "Do Residual Development Options Increase Preserved Farmland Values?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-17.
    19. Gyourko, Joe & Krimmel, Jacob, 2021. "The impact of local residential land use restrictions on land values across and within single family housing markets," Journal of Urban Economics, Elsevier, vol. 126(C).
    20. Ritter, Matthias & Huttel, Silke & Odening, Martin & Seifert, Stefan, 2019. "Revisiting The Relationship Between Land Price And Parcel Size," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285062, Australian Agricultural and Resource Economics Society (AARES).

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:9:n:3:1994:p:353-368. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.