Modeling Land Value in Peripheral Metropolitan: An Empirical Study in Jakarta Metropolitan Area

Abstract

The purpose of this work is to map and examine infrastructure development and facilities on the land value both economically and spatially. The study used iso-value line analysis to describe land price increases in two decades (2000-2010), hedonic pricing models to determine how variable influences land price increases and Geographically Weighted Regression to describe spatial heterogeneity and spatial dependence. The results showed that the variable location of land located in cluster housing, proximity to the Station, proximity to the bus terminal, and proximity to toll gates became the main factors influencing land prices. These findings suggest that periphery and central transport connectivity are a consideration in pricing. The need for mass transportation as a consideration in the selection of homes in periphery area communities. These findings can help policymakers direct and control the spatial structure of regional economic development and policies related to land value capture.