IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v29y1992i5p669-686.html
   My bibliography  Save this article

A Theory of Land Prices when Land is Supplied Publicly: The Case of the Netherlands

Author

Listed:
  • Barrie Needham

    (Department of Physical Planning, Faculty of Policy Sciences, University of Nijmegen, Thomas van Aquinostraat 5, PO Box 9044, 6500 KD Nijmegen, Netherlands)

Abstract

Most attempts to explain land prices assume free competition between suppliers and demanders of land. If there are constraints on this competition (e.g. land-use planning) this is added as a modification to the theory. When, however, the supply of building land is in the hands of public agencies, which determine the volume and price of supply specified by land use and location, a different theoretical approach is needed. In this situation, certain economic principles apply which determine the maximum and minimum prices at which land will be bought for development and at which serviced building land will be supplied for development. However, both the limits of this range and the actual land prices within it will depend on political choices made by the public agencies. In the Netherlands, municipalities dominate the supply of land for development and redevelopment. Information about the way Dutch municipalities make the political choices and about the actual land prices there, suggests they make the political choices in a consistent way: they see themselves as suppliers of a public utility, namely building land. They try to supply so that there is never any scarcity, so that quality is high, so that prices no more than cover costs. The resulting prices might not be low, but they represent good value for money, because no-one reaps development gains directly. These are low because disposal prices are lower than could be realised, or development gains are absorbed in providing either a better quality of land servicing or more land for social uses.

Suggested Citation

  • Barrie Needham, 1992. "A Theory of Land Prices when Land is Supplied Publicly: The Case of the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 29(5), pages 669-686, June.
    • Handle: RePEc:sae:urbstu:v:29:y:1992:i:5:p:669-686
    DOI: 10.1080/00420989220080621
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420989220080621
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420989220080621?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:brs:ecchap:16 is not listed on IDEAS
    2. repec:rri:bkchap:16 is not listed on IDEAS
    3. Grant I. Thrall, 1987. "Land Use and Urban Form," Wholbk, Regional Research Institute, West Virginia University, number 16, July-Sept.
    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. ., 2014. "Planning for a housing crisis: or the alchemy by which we turn houses into gold," Chapters, in: Urban Economics and Urban Policy, chapter 4, pages 79-103, Edward Elgar Publishing.
    2. Gastón Ballut Dajud & Néstor Garza, 2015. "Segmentación inmobiliaria en una ciudad intermedia del caribe colombiano: el caso de Sincelejo," Revista de Economía del Caribe 14785, Universidad del Norte.
    3. Eero Valtonen & Heidi Falkenbach & Kauko Viitanen, 2017. "Development-led planning practices in a plan-led planning system: empirical evidence from Finland," European Planning Studies, Taylor & Francis Journals, vol. 25(6), pages 1053-1075, June.
    4. ., 2014. "Planning: reforms that might work and ones that won't," Chapters, in: Urban Economics and Urban Policy, chapter 6, pages 127-154, Edward Elgar Publishing.

    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. C J Webster & F Wu, 1999. "Regulation, Land-Use Mix, and Urban Performance. Part 1: Theory," Environment and Planning A, , vol. 31(8), pages 1433-1442, August.
    2. D Levinson, 1997. "The Limits to Growth Management: Development Regulation in Montgomery County, Maryland," Environment and Planning B, , vol. 24(5), pages 689-707, October.
    3. M Batty & P Longley & S Fotheringham, 1989. "Urban Growth and Form: Scaling, Fractal Geometry, and Diffusion-Limited Aggregation," Environment and Planning A, , vol. 21(11), pages 1447-1472, November.
    4. Jian Zhou & Daniel P. McMillen & John F. McDonald, 2008. "Land Values and the 1957 Comprehensive Amendment to the Chicago Zoning Ordinance," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1647-1661, July.
    5. John Polimeni, 2005. "Simulating Agricultural Conversion to Residential use in the Hudson River Valley: Scenario Analyses and Case Studies," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(4), pages 377-393, December.
    6. Barrie Needham & Arno Segeren & Edwin Buitelaar, 2011. "Institutions in Theories of Land Markets: Illustrated by the Dutch Market for Agricultural Land," Urban Studies, Urban Studies Journal Limited, vol. 48(1), pages 161-176, January.
    7. David Levinson, 1997. "The Limits to Growth Management," Working Papers 199706, University of Minnesota: Nexus Research Group.
    8. Timothy J. Bailey, 1999. "Modelling the Residential Sub-market: Breaking the Monocentric Mould," Urban Studies, Urban Studies Journal Limited, vol. 36(7), pages 1119-1135, June.
    9. A.S. Steyn & H.S. Geyer, 2011. "Urban Form Revisited: An Account of Views on the Issues," Chapters, in: H. S. Geyer (ed.), International Handbook of Urban Policy, Volume 3, chapter 3, Edward Elgar Publishing.
    10. J Doherty & WAV Clark & J O Wheeler & P A Wood & G I Thrall & B T Robson & R Murray & D E Dowall & R Hayter & A Kellerman & F Webster & E Graham, 1991. "Reviews: The Political Geography of Contemporary Britain, Urban Affairs Annual Reviews 32. Divided Neighborhoods: Changing Patterns of Racial Segregation, Urban Affairs Annual Reviews Volume 34. Econo," Environment and Planning A, , vol. 23(3), pages 447-462, March.
    11. C J Webster, 1995. "Urban Morphological Fingerprints," Environment and Planning B, , vol. 22(3), pages 279-297, June.
    12. G I Thrall, 1991. "Production Theory of Land Rent," Environment and Planning A, , vol. 23(7), pages 955-967, July.
    13. Hoang Huu Phe & Patrick Wakely, 2000. "Status, Quality and the Other Trade-off: Towards a New Theory of Urban Residential Location," Urban Studies, Urban Studies Journal Limited, vol. 37(1), pages 7-35, January.
    14. Barrie Needham & George de Kam, 2004. "Understanding How Land is Exchanged: Co-ordination Mechanisms and Transaction Costs," Urban Studies, Urban Studies Journal Limited, vol. 41(10), pages 2061-2076, September.
    15. Dunning, Richard J. & Moore, Tom & Watkins, Craig, 2021. "The use of public land for house building in England: Understanding the challenges and policy implications," Land Use Policy, Elsevier, vol. 105(C).

    More about this item

    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:sae:urbstu:v:29:y:1992:i:5:p:669-686. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.