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A History of Site Valuation Rules: Functions and Empirical Evidence

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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.

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  • 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
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    References listed on IDEAS

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    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.
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    Cited by:

    1. 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.
    2. 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.

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    JEL classification:

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

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