Determining Land Values from Residential Rents
| Item Type | Journal paper |
| Abstract | The value of land is determined by the locations’ attractiveness and the degree of regulation. When land regulations are binding, e.g. when a restriction on the maximum floor area ratio exists, the best use land price can be directly expressed as a function of the maximum floor area ratio and local amenities. We show theoretically and empirically how this approach can be used to determine land values from residential rents. From our empirical results, we derive two main sources for a monocentric structure of land prices. First, the location attractiveness of centrally located dwellings makes land prices more expensive. Second, as the maximum floor area ratio is high in central areas, the regulation works as a multiplier for land prices and inflates prices accordingly. Our model gives insights into the determinants of urban land prices and provides a useful approach for land appraisal in urban regions where land transactions are scarce. |
| Authors | Füss, Roland; Koller, Jan & Weigand, Alois |
| Journal or Publication Title | Land |
| Language | English |
| Keywords | Apartment Rent; Land Use Regulation; Floor Area Ratio (FAR); Land Prices; Monocentric Structure. |
| Subjects | business studies economics finance |
| HSG Classification | contribution to scientific community |
| HSG Profile Area | SOF - System-wide Risk in the Financial System |
| Refereed | Yes |
| Date | 25 March 2021 |
| Publisher | MDPI |
| Series Name | School of Finance Working Paper Series |
| Volume | 10 |
| Number | 4 |
| Page Range | 336 |
| Number of Pages | 29 |
| ISSN | 2073-445X |
| Publisher DOI | https://doi.org/10.3390/land10040336 |
| Official URL | https://www.mdpi.com/2073-445X/10/4/336 |
| Contact Email Address | roland.fuess@unisg.ch |
| Depositing User | Geraldine Frei-Böbel |
| Date Deposited | 03 Apr 2017 14:50 |
| Last Modified | 10 May 2022 12:14 |
| URI: | https://www.alexandria.unisg.ch/publications/250684 |
DownloadFull text not available from this repository. (Request a copy)CitationFüss, Roland; Koller, Jan & Weigand, Alois (2021) Determining Land Values from Residential Rents. Land, 10 (4). 336. ISSN 2073-445X Statisticshttps://www.alexandria.unisg.ch/id/eprint/250684
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