The Essence of Equivalent Markets in Determining the Market Value of Land Property for Variable Planning Factors

Open access

Abstract

The leading local legislation act defining the spatial policy is the local development plan, the financing of which is the commune’s responsibility. The beneficiary of activities aimed at the transformation of the intended property use is its owner or its perpetual lessee – with lessees incurring the costs of adopting the local development plans through so-called zoning fees, the amount of which, often controversial, has become the source of numerous lawsuits. The presented problem of an outside-business and often radical change of land value corresponds to the market dilemmas in determining equivalent markets, and establishing price-setting factors and their impact on the value of real estate.

Circles of analysts and appraisers determine equivalent markets radially. This means that the analyzed or valued property is the central point of the monitored area, incorrectly “enclosed” within the geometry of a circle. Such a perception of the dispersion of transaction prices does not reflect the actual nature of the market, as evidenced by the analyses of land property values according to their planning factors, carried out as part of the present paper.

The focal point of the article is a continuous map of land value developed for properties located within the cadastral unit of Podgórze of the city of Krakow which indicates that it is not legitimate to arbitrarily take on the radial approach when designating equivalent markets, which was indirectly approved by Waldo Tobler claiming that: “Everything is related to everything else, but near things are more related than distant things” (Tobler 1970).

Braunbrück A., Ravasoo A., 2016, Nonlinear Wave Propagation and Reflection — Comparing the Numerics with the Analytics, Wave Motion, Vol. 60, pp. 108-120.

Cellmer R., 2014, Modelowanie przestrzenne w procesie opracowania map wartości gruntów (Spatial Modeling in the Process of Developing Land Value Maps) (in Polish), UWM, Olsztyn.

Cellmer R., Kuryj J., 2011, Defining the Land Value Zones with Use of Geostatistical Methods, Journal of the Polish Real Estate Scientific Society, Vol. 19, No. 3, pp.. 7-19.

Cieszyński M., Drelich R, Pakuła M., 2016, Wave Dispersion in Randomly Layered Materials, Wave Motion, Vol. 64, pp. 52-67.

Dingemants M. W., Klopman G., 2010, Reflection in Variational Models for Linear Water Waves, Wave Motion, Vol. 47, pp. 469-489.

Gotway C.A., Young L.J., 2002, Combining Incompatible Spatial Data, Journal of the American Statistical Association, Vol. 97, pp. 632 – 647.

Gunes A., Kovel J., 2000, Using GIS in Emergency Management Operations, Journal of Urban Planning and Development, Vol. 126(3), pp. 136-149.

Huang D., Qian Z., Shen G., Xu J., 2010, Spatial Analysis and Assessment of Soil Fertility by Using GIS and Kriging Method, World Automation Congress (WAC), pp. 19-23.

Jasińska E., 2008, Zastosowanie Analizy Czynnikowej w Szacowaniu Nieruchomości (The Application of Factor Analysis in the Estimation of Real Estate) (in Polish), Zastosowanie metod statystycznych w badaniach naukowych III, StatSoft Polska.

Krajewska M., 2008, Value of Built-up Eeal Estate in Different States of Spatial Planning, Journal of the Polish Real Estate Scientific Society, Vol. 16, No. 3, pp. 47-54.

Kucharska – Stasiak E., 2011, Value Measurement in Economics – Consequences for Real Estate Valuation, Journal of the Polish Real Estate Scientific Society, Vol. 19, No. 1, pp. 7-16.

Ligas M., 2009, Application of Regression – Kriging Model to Real Estate Value Prediction, Journal of the Polish Real Estate Scientific Society, Vol. 17, No. 1, pp. 7-15.

Liu C., Qian Z., Sarris A., Shen G., Xu J., 2009, Applications of Regression Kriging and GIS in Detecting the Variation in Leaf Nitrogen and Phosphorus of Spruce in Europe, Computer Science and Information Engineering, Vol. 7, pp. 336-340.

Mitka B., Piech I., 2012, Modelowanie powierzchni terenu (Land Surface Modelling), Kraków, Infrastruktura i Ochrona Terenów Rolnych, No. 3/I/2012, pp. 167-180.

Mucha J., Wasilewska M., 2007, Geostatystyka nieparametryczna w dokumentowaniu złóż (Non-Parametrical Geostatics in Deposit Documenting) (in Polish), Kraków, Zagrożenia naturalne w górnictwie – materiał warsztatowy, pp. 339-352.

Niedoba T., 2011, Zastosowanie krigingu zwyczajnego dla oszacowania zawartości popiołu i siarki w węglu w zależności od gęstości i rozmiaru ziarna (Using Ordinary Krining to Estimate Ash and Sulphur Content in Coal Depending on Grain Density and Size), Górnictwo i Geologia, Vol. 6, No. 2, pp. 159-166.

Źróbek R., Dawidowicz A., 2014, Scientic Editors, Spatial Data in Wide Geospace, Croatian Information Technology Society, GIS Forum 10 000 Zagreb, Croatia, University of Warmia and Mazury in Olsztyn, University of Silesia, Poland, pp. 27-34.

Prus B., 2010, Mapa wartości gruntów jako czynnik wspomagający gospodarowanie terenami w gminie (Land Value Map as a Factor Supporting Commune Land Management), Infrastruktura i Ekologia Terenów Wiejskich, Polska Akademia Nauk, No. 12, pp. 169-177.

Tobler R. W., 1970, A Computer Model Simulating Urban Growth in the Detroit Region, Economic Geography, Vol. 46 (2), pp. 234-240.

Act of 21 August 1997 on Real Estate Management, Journal of Laws of 2015, Item 1774, as amended.

Act of 27 March 2003 on Spatial Planning and Land Utilization, Journal of Laws of 2015, Item 199, as amended.

Real Estate Management and Valuation

The Journal of Towarzystwo Naukowe Nieruchomosci

Journal Information

CiteScore 2017: 0.19

SCImago Journal Rank (SJR) 2017: 0.140
Source Normalized Impact per Paper (SNIP) 2017: 0.363

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 198 160 5
PDF Downloads 77 72 5