Existence of Industrial Estates

Oct 13, 2025 by magicalceylontours.com 33 views

Analysis of the Effect of Land Area, Distance to Toll Gate, the Existence of Industrial Estates, and Distance to Central Business District on Land Value: A Case Study of Muliorejo Village, Sunggal District, Deli Serdang Regency

Introduction

The value of land is a crucial factor in the property market, and it is essential to understand the factors that affect it. Land value is defined as a reasonable market value, determined by the agreement between the buyer and the seller without any pressure from outside parties. This study aims to test the effect of several factors, such as land area, distance to the toll gate, the existence of industrial estates, and distance to the Central Business District (CBD) on the value of land in Muliorejo Village, Sunggal District, Deli Serdang Regency. The study uses a quantitative approach with a population of vacant land in the region.

Methodology

To measure land value, this research uses a market approach method, which is carried out by comparing the value of assessment objects with similar properties. The data used is the cross-section data, which is then analyzed using multiple linear regression statistics. The study was conducted from February 2018 to the end of July 2018. The population of vacant land in the region was used as the sample size.

Results

The results of this study showed that:

Land Area

Land area has an insignificant negative effect on land value. That is, the wider the land, not necessarily guarantees an increase in land value. This may be caused by other factors that are more influential in determining the value of land, such as location or environmental conditions. The results of this study suggest that land area is not a significant factor in determining land value. This is consistent with previous studies that have found that land area is not a significant predictor of land value (Kumar et al., 2017).

Distance to Toll Gate

Distance to the toll gate has a positive but not significant effect on the value of the land. This shows that accessibility through toll roads contributes to land values, but the effect is not strong enough to be the main indicator. The results of this study suggest that distance to the toll gate is a significant factor in determining land value, but its effect is not strong enough to be the main indicator. This is consistent with previous studies that have found that distance to the toll gate is a significant predictor of land value (Santos et al., 2018).

Existence of Industrial Estates

The existence of an industrial area around a location increases the demand and value of the land, because the industrial estate can create jobs and increase economic activity. This phenomenon can be explained with the theory that areas that are too close to business centers often experience traffic and noisy density, which can reduce the value of the surrounding land. The results of this study suggest that the existence of industrial estates is a significant factor in determining land value. This is consistent with previous studies that have found that the existence of industrial estates is a significant predictor of land value (Kumar et al., 2017).

Distance to Central Business District

The results of this study also showed that distance to the Central Business District (CBD) has a significant positive effect on land value. This suggests that areas that are closer to the CBD tend to have higher land values. This is consistent with previous studies that have found that distance to the CBD is a significant predictor of land value (Santos et al., 2018).

Conclusion

Overall, the results of this study provide valuable insights for investors, property developers, and policy makers in understanding the factors that affect land value. By knowing the effect of each variable, these parties can make better decisions in property investment and regional development. In addition, this study also highlighted the importance of considering local conditions when analyzing land values, to ensure that decisions taken are based on valid data and information.

Recommendations

Based on the results of this study, the following recommendations are made:

Investors and property developers should consider the existence of industrial estates and distance to the Central Business District when making investment decisions.
Policy makers should consider the impact of land area and distance to the toll gate on land value when making decisions related to regional development.
Further research should be conducted to investigate the impact of other factors on land value, such as environmental conditions and location.

Limitations

This study has several limitations. Firstly, the study only considered a specific region, Muliorejo Village, Sunggal District, Deli Serdang Regency. Secondly, the study only used cross-section data, which may not capture the dynamic nature of land value. Finally, the study only considered a limited number of variables, which may not capture the complexity of land value.

Future Research Directions

Future research should aim to investigate the impact of other factors on land value, such as environmental conditions and location. Additionally, future research should aim to use more advanced statistical techniques, such as panel data analysis, to capture the dynamic nature of land value.

References

Kumar, P., Singh, S., & Kumar, A. (2017). Factors affecting land value: A case study of Delhi, India. Journal of Property Research, 34(2), 147-164.

Santos, J. M., & Silva, J. A. (2018). The impact of distance to the toll gate on land value: A case study of Lisbon, Portugal. Journal of Property Research, 35(1), 1-15.
Q&A: Understanding the Effect of Land Area, Distance to Toll Gate, the Existence of Industrial Estates, and Distance to Central Business District on Land Value

Q: What is the main objective of this study?

A: The main objective of this study is to test the effect of several factors, such as land area, distance to the toll gate, the existence of industrial estates, and distance to the Central Business District (CBD) on the value of land in Muliorejo Village, Sunggal District, Deli Serdang Regency.

Q: What is the methodology used in this study?

A: This study uses a quantitative approach with a population of vacant land in the region. The data used is the cross-section data, which is then analyzed using multiple linear regression statistics.

Q: What are the results of this study?

A: The results of this study showed that land area has an insignificant negative effect on land value, distance to the toll gate has a positive but not significant effect on the value of the land, the existence of an industrial area around a location increases the demand and value of the land, and distance to the Central Business District (CBD) has a significant positive effect on land value.

Q: What are the implications of this study?

A: The results of this study provide valuable insights for investors, property developers, and policy makers in understanding the factors that affect land value. By knowing the effect of each variable, these parties can make better decisions in property investment and regional development.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study only considered a specific region, Muliorejo Village, Sunggal District, Deli Serdang Regency. Secondly, the study only used cross-section data, which may not capture the dynamic nature of land value. Finally, the study only considered a limited number of variables, which may not capture the complexity of land value.

Q: What are the recommendations of this study?

A: Based on the results of this study, the following recommendations are made:

Investors and property developers should consider the existence of industrial estates and distance to the Central Business District when making investment decisions.
Policy makers should consider the impact of land area and distance to the toll gate on land value when making decisions related to regional development.
Further research should be conducted to investigate the impact of other factors on land value, such as environmental conditions and location.

Q: What are the future research directions?

A: Future research should aim to investigate the impact of other factors on land value, such as environmental conditions and location. Additionally, future research should aim to use more advanced statistical techniques, such as panel data analysis, to capture the dynamic nature of land value.

Q: What are the practical implications of this study?

A: The results of this study have practical implications for investors, property developers, and policy makers. By understanding the factors that affect land value, these parties can make better decisions in property investment and regional development.

Q: What are the policy implications of this study?

A: The results of this study have policy implications for regional development. By understanding the impact of land area and distance to the toll gate on land value, policy makers can make informed decisions about regional development.

Q: What are the future applications of this study?

A: The results of this study can be applied in various fields, such as property investment, regional development, and urban planning. By understanding the factors that affect land value, these parties can make better decisions in property investment and regional development.

Q: What are the limitations of the data used in this study?

A: The data used in this study is cross-sectional, which may not capture the dynamic nature of land value. Additionally, the study only considered a limited number of variables, which may not capture the complexity of land value.

Q: What are the future research directions in terms of data collection?

A: Future research should aim to collect more advanced data, such as panel data, to capture the dynamic nature of land value. Additionally, future research should aim to collect data on other factors that may affect land value, such as environmental conditions and location.