Tahsin Yomralioglu Chapter 2: Land Readjustment

Tahsin Yomralioglu Chapter 2 : Land Readjustment
CHAPTER 2
LAND READJUSTMENT
"Land read ju stm ent as a d ifferent ap p roach to

financing u rban d evelop m ent com bines significant
ad vantages w ith a nu m ber of technical com p lexities.
It is no p anacea for the staggering p roblem s of
fu rnishing infrastru ctu re to a w orld likely to d ou ble
its u rban p op u lation in the next few d ecad es. On the
other hand , it is a d evice that d eserves to be
understood, and possibly experimented with, in many
cou ntries cu rrently u naw are of its existence and
possibilities."
(Doebele, 1982)
2.1 Introduction
In 1990, United N ations Centre for H u m an Settlem ents ad op ted a resolu tion
that:
"Under land read ju stm ent p rogram m es, u nd evelop ed

areas, u su ally an u rban fringe, can be d esignated for
im p rovem ent, inclu d ing the rearrangem ent of p lots, the
grad ing of land , the constru ction of road s and the
p rovision of infrastru ctu re. Instead of p aying a
betterm ent levy, land hold ers m u st su rrend er p art of
their land to the local au thority as p aym ent for the
im p rovem ents. The local au thority can then resell this
portion of land to recoup the improvement costs."
(HABITAT, 1990)
A Nominal Asset Value-Based Approach For Land Readjustment And Its Implementation Using GIS 12
Land read ju stm ent is one of land m anagem ent m ethod s u sed in u rban
d evelop m ent or red evelop m ent p rocesses. It is the p rocess of bartering raw
land for serviced land , and is therefore su ited to cou ntries w here
governm ents find it d ifficu lt to finance p u blic infrastru ctu re investm ent
(Shoup, 1983).
In this chap ter the concep t of land read ju stm ent m ethod is ou tlined w ith its
historical backgrou nd , techniqu es, and the m ain characteristics. The p otential
u se of land read ju stm ent in u rban land d evelop m ent is also exp lained w ith
the advantages and disadvantages of the method.
2.2 Urban development
Mod ern u rban areas are bu rd ened w ith m any p roblem s su ch as: p op u lation
concentration, d eterioration of living environm ents, necessity for p reventing
fires and other d isasters, traffic congestion, insu fficient hou sing and hou sing
sites, sp raw l p henom ena. To increase the su p p ly of serviced land to
accom m od ate rap id u rbanisation, Grim es (1982) exp ressed that there are fou r
major objectives of all that public authorities are trying to achieve in cities.
(1) There is first the need to id entify or select locations w here
growth should be accommodated.
(2) These locations shou ld be serviced in a cost-effective,
rather than a high-cost manner.
(3) The financial bu rd en on p u blic bod ies resu lting from the
infrastru ctu re p rovision shou ld be reasonable. Typ ically
this m eans that costs shou ld be recovered from the
ultimate beneficiaries to the maximum feasible degree.
(4) There shou ld be m eans of encou raging the right typ e of
d evelop m ent on the land once it is serviced . Desirable
land u ses m ay be those that increase the access of p oor
fam ilies to hou sing and jobs; or that to d o not resu lt in
large increases in land valu es; or in general that p rom ote
any policy objective that it is felt to be worth while.
2.3 Land use control mechanism
Governm ents in all cou ntries have p erceived the need to control the u se of
u rban land in the general interest of the com m u nity. Land u se in the
com m u nity interest involves m ore than the recognition of sp illover effects on
contigu ou s land . One objective is to p rovid e p u blic am enities, su ch as op en
sp ace. Another is to increase efficiency of land d evelop m ent or
red evelop m ent for m ore d esirable p u rp oses. In land u se, there are
d istribu tional aim s su ch as m aking land available to all grou p s in the
com m u nity and ensu ring that the benefits of d evelop m ent go to the
com m u nity as a w hole. To achieve these aim s, Cou rtney (1983) ind icated that
there are five common forms of land use controlling mechanism. These are;
(1) Zoning
(2) Subdivision
(3) Building regulations
(4) Approval by government agencies
(5) Urban planning
2.3.1 Zoning
Zoning is the d em arcation of a city by ord inances and the establishm ent of
regu lations to govern the u se of the zoned land (Cou rtney, 1983). It also
includes general rules about location, bulk, height, and thus plot ratios, shape,
u se, and coverage stru ctu res w ithin each zone. It is an attem p t to organise
and system atise the grow th of u rban areas by setting u p categories, classes, or
d istricts of land in the com m u nity. It also p rescribes the u ses to w hich
bu ild ings and land m ay be p u t, and ap p lies u niform restrictions on the shap e
and p lacem ent of bu ild ings. The m ain objectives of su ch regu lations are to
improve efficiency, to provide land for public good and services.
Zoning is also u sed to affect the d istribu tion of benefits, esp ecially the
p rotection of the rights of existing ow ners, althou gh it can be u sed m ore
p ositively to release land for red istribu tional p u rp oses su ch as low -income
housing.
2.3.2 Subdivision
Subdivision regulations govern the development of raw land for residential or
other p u rp oses. They p rescribe stand ard s for lot sizes and layou t, street
im p rovem ents, p roced u res for d ed icating p rivate land to p u blic p u rp oses,
and other requ irem ents in far m ore d etail than in the zoning p lan. They also
inclu d e p roced u res for filing m ap s and for receiving the ap p roval of the
p u blic d ep artm ents that grant p erm ission. In the m ain, the objective of such
d etailed controls is to ensu re that d evelop m ents take accou nt of the
com m u nity's need for p u blic good s and services, of m inim u m stand ard
requirements.
The su bd ivision of land p rior to d evelop m ent is one of the m ost im p ortant
d eterm inants of neighbou rhood p atterns. Once the size and shap e of lots
have been d efined , the essential character of land u ses, street p atterns, and
p u blic u tilities is d eterm ined . Lot size and shap e also strongly affect the typ e,
size, and quality of structures and the density of population.
The regu lation and p lanning of su bd ivision on the ou tskirts of cities are
w id ely accep ted as essential to d evelop m ent. It has been p ractised in m any
d evelop ing cou ntries for p rivate d evelop m ent and the sp ecification of p u blic
involvem ent. Su bd ivision is an effective w ay of controlling land -u se, bu t
cu rrent stand ard s are often too high, too d etailed and flexible, u nrelated to
local conditions and often even to the planning objectives of the community .
2.3.3 Building regulations
Building regulations limit or define the way new structures are to be built and
the m aterials to be u sed . They m ay also be ap p lied to the m aintenance and
im p rovem ents of existing bu ild ings. They m ay p rohibit the erection of any
stru ctu re w hat so ever or restrict the style of architectu re, the p osition of the
building on the lot, or its distance from the street, its height or depth.
Bu ild ing regu lations are one of the old est and m ost com m on m ethod s of
controlling land d evelop m ent. These are d efined for a sp ecific local, regional,
or national area, d ep end ing on the size of the cou ntry, the p olitical stru ctu re,
the variations in climate, local standards, and other factors.
2.3.4 Approval by government agencies
Ap p roval by governm ent agencies is the m ain w ay in w hich controls over
d evelop m ent rights, su bd ivision, and bu ild ing are enforced . Generally,
bu ild ing p erm its are requ ired to ensu re com p liance w ith the local by-laws
and in som e cases w ith the general city p lan. A bu ild ing p erm it is usually
granted tentatively on the basis of schematic designs of the proposed building
or grou p of bu ild ings p rep ared in line w ith zoning, su bd ivision, and bu ild ing
regu lations. The d esign is finally ap p roved w hen the fu ll set of contract
documents is available.
2.3.5 Urban planning
In the broad est sense, p lanning is the allocation of scarce resou rces to achieve
certain goals, and it therefore inclu d es m ost fu nctions of governm ent. The
com m on u se of the term , how ever, refers to the p rocess of m aking d ecisions
abou t the p hysical environm ent and evalu ating how changes in this
environm ent affect p eop le and the econom y in relation to som e sp ecified
objective. The p lan is then p u t into op eration w ith the u se of the regu latory
instruments.
Cou rtney (1983) also p ointed ou t that the m ost com m only u sed p lanning
p rocesses are: com p rehensive general p lanning, m aster p lanning, and action
p lanning. Com p rehensive and m aster p lanning tend to assu m e a static or
slow-grow ing u rban situ ation, qu ite m anageable in term s of p u blic
investm ent d ecisions, and the long-range p lanning of m ajor infrastru ctu re
p rojects. This assu m p tion is u su ally close to reality in d evelop ed cou ntries,
w here a p rim e objective of p lanning is to m aintain the established ord er.
Develop ing cou ntries, how ever, are characterised by rap id grow th, a m ajor
backlog of d em and for infrastru ctu re investm ent, and heavy com p etition for
the lim ited financial resou rces. The p ressing u rgency of change w ith lim ited
resources requires a more dynamic planning process.
Action p lanning highlights the critical issu es, id entifies the p riority
investm ents for infrastru ctu re, and thereby establishes the areas in w hich
grow th and changes shou ld occu r. It is ap p lied not only to the exp ansion of
the city, bu t also to the renew al, u p grad ing or d ensification of old er areas.
Su ch p lanning d oes not requ ire elaborate d ata gathering and can read ily
become an ongoing process involving selective action in key areas. It requires
that p riorities be established and that p lanning and d ecision-m aking be
resp onsive to them . When the p lanning p rocess is u sed to gu id e key
investm ent d ecisions, it becom es an im p ortant p ositive tool in controlling and
influ encing the p attern of d evelop m ent and thereby encou raging efficiencies
in public resource allocation over time and space.
2.4 Land management methods
Du nkerley (1983) stated that the u np reced ented exp ansion of u rban
p op u lation in m ost of the d evelop ing w orld is cau sing an excep tionally rap id
increase in the d em and for u rban land . Land location is sp ecific, and existing
u rban p lots cannot be rep rod u ced . Thu s the rising d em and for u rban land
tend s to be m et p rim arily by converting ru ral land at the p erip hery of the
existing bu ilt-u p area. The su bd ivision of agricu ltu ral hold ings and the
provision of access roads is followed by the extension of other services.
In ord er to hand le and m anage these requ irem ents, first it is necessary to
m ake an ap p rop riate and extensive p lan. To realise this p lan, it is cru cial to
take into consid eration m ost im p ortant objectives to be accom p lished and the
cond itions of the p roject area so that the m ost ap p rop riate, concrete
p rogram m e of u rban d evelop m ent and land m anagem ent m ay be selected .
There are variou s u rban d evelop m ent and land m anagem ent m ethod s and
p rojects, w hich can be categorised in m any w ays (N CPB, 1982; Rhind and
Hudson, 1980; Davis, 1976).
Table 2.1 attem p ts to categorise som e land m anagem ent m ethod s so that they
are contrasted with land readjustment.
2.5 Historical overview of land readjustment
The origin of land read ju stm ent concep t goes back to the Germ an Lex
Ad ickes' Law , w hich w as ad op ted in Frankfu rt-am-Main in 1903. Ku p p ers
(1982) ou tlines an early form of land read ju stm ent in Germ any. As a resu lt of
its central p osition on the Rhine and Main rivers, the tow n of Frankfu rt-am-
Main in Germ any entered a p hase of rap id d evelop m ent as a centre of trad e
and ind u stry after being annexed by Pru ssia in 1886. After the Ind u strial
Revolution in Germany, building activities rapidly increased in Frankfurt-am-
Main. In 1891, Franz Ad ickes w as elected Lord Mayor of the city, giving
p riority to p rovid ing bu ild ing sites. Intensive d evelop m ent of resid ential
areas and shortage of bu ild ing sites had cau sed p rop erty p rices in Frankfu rt-
am-Main to soar d esp ite p olitical and ad m inistrative efforts being m ad e to
keep p rop erty taxes in line. One p olitician called for the valu e increase
accru ed by the conversion of farm land to bu ild ing land to be confiscated by
taxation. It w as Ad ickes and Gu astave Lu be w ho w ere to initiate p rop erty
reorganisation by voluntary regroupment contract.
Ad ickes' initial efforts at land regrou p m ent w ere based on an exchange of
p rop erty w ith p rivate land ow ners in retu rn for hand ing over su itable p arcels
for bu ild ing streets and other facilities for the city. It w as not alw ays p ossible
to reach agreem ent w ith those w hose p rop erties w ere to be affected .
Therefore, m ost regrou p m ent took p lace in areas w here p rop erty ow ners
were most agreeable to process, not necessarily where it was needed the most.
It w as also d ifficu lt to consid er sm all p rop erty ow ners in new allocation
schemes. They were not interested in exchanges, and many requested that the
City to bu y their p rop erties ou tright. The City often refu sed , as p rices
demanded were too high.
In 1902, new Land Regrou p m ent bills w ere su bm itted to the Pru ssian Diet
w ith p rovisions stating that regrou p m ent cou ld take p lace by p etition of one-
half of the ow ners w ithin the regrou p m ent area. The head of local
governm ent w ou ld be resp onsible for p roject, and the new law w ou ld be
ap p licable only to Frankfu rt-am-Main. Its basic form w as seen as giving
m axim u m secu rity to the rights of p rop erty ow ners. The "Act Concerning
Regrou p m ent of Prop erty in Frankfu rt-am-Main" becam e law on Janu ary 1,
1903. Contained in Article 13 of the Act w as clau se stating that m onetary
com p ensation w as to be given to ow ners w hen land requ ired for streets and
other p u blic facilities w as m ore than 30% in excess of the am ou nt of land
surrendered by the owners.
In 1907, the level of exp rop riation w ithou t com p ensation w as raised to 40%
w hen regrou p m ent w as initiated by p rop erty ow ners, 35% w hen initiated by
resolu tion of City Cou ncil. After the fou nd ation of the Fed eral Rep u blic of
Germ any, the Germ an Bu nd p assed the Fed eral Bu ild ing Act in 1960. In this
Act, articles 45-122 contain p rovisions on regrou p m ent bou nd ary regu lation,
expropriation and compensation (Kuppers, 1982).
In ad d ition to Germ an exp erience, land read ju stm ent w as also w id ely u sed in
Jap an, Sou th Korea, Taiw an, Tu rkey and som e cities in Au stralia and Canad a
(Archer, 1992; Yom ralioglu , 1992). It has also been ad op ted in Ind onesia and
N ep al (Archer, 1986; Sjahru l 1987; Acharya 1988). The im p lem entations of
land readjustment in some of these countries are mentioned in section 2.13.
2.6 Definition of land readjustment
The term land read ju stm ent has been u sed u nd er d ifferent nam es in the
literatu re. Su ch nam es are, urban land readjustment (Chou and Shen, 1982);
land readjustment (Doebele, 1982; Minerbi et.al, 1986); land pooling (Archer,
1982); land regroupment (Ku p p ers, 1982); land reform (King, 1977); land
reordering (Davis, 1976). Som etim es, the term land read ju stm ent has been
confu sed w ith the concep t of land consolidation. Doebele (1982) has exp ressed
that;
"For u niform ity, the term land consolidation has been reserved
for d escrip tions of p roced u res that change the bou nd aries of
ru ral or agricu ltu ral and forest land , w hile land readjustment has
been u sed for p rojects in u rban areas or that have as their
objective the conversion of ru ral land to u rban bu ild ing sites or
the red evelop m ent of existing u rbanised areas. Since this
m echanism has not yet been m u ch d iscu ssed in English, it is
hop ed that land readjustment can becom e the com m only
accepted term."
To contribu te to the stand ard isation of a com m only accep ted p hrase, the term
land readjustment has been preferred to use in this thesis.
There is no any international accep ted d efinition of land read ju stm ent.
However, some authors have expressed some different definitions as follows:
"Land read ju stm ent/ p ooling is a techniqu e for m anaging the

u rban d evelop m ent of u rban-fringe land s, w hereby a grou p of
sep arate land p arcels are assem bled for their u nified p lanning,
servicing and su bd ivision as a single estate, w ith the sale of
som e of the new bu ild ing p lots to recover the costs and the
redistribution of the other plots back to the landowners."
(Archer, 1992)
"It is a techniqu e by w hich p u blic facilities in a certain area,

su ch as road s, p arks, and sew erage that are necessary for life,
are created and / or im p roved , and ind ivid u al sites are m ad e
easier to u se and their site u tility is increased by d ivid ing them
into more regular shapes."
(NCPB, 1982)
"Land read ju stm ent is an instru m ent for land organisation,

w hich m eans both the p rovision of land need ed for p u blic
p u rp oses and the su itable form ation of p rivate land accord ing
to the rules of town planning."
(Seele, 1982)
In a sim p le m eaning, land read ju stm ent can be d efined as a land reform ation
p rocess, becau se it changes the original location of land p arcel and land -use
w ithin the p roject area. Concep tu ally, land read ju stm ent aim s to take ru ral or
u np lanned u rban land , u su ally irregu larly su bd ivid ed , and re-allocate it in
the requ ired balance for p u blic and p rivate u se accord ing to tow n p lanning
requirements (Figure 2.1).
The concep t is a sim p le one. When there is a need to d evelop a su bu rban
area, first, a site p lan is p rep ared by the m u nicip ality. Then the area is
su bd ivid ed into an ap p rop riate p attern of streets, p arks, schools, and sites for
other u ses. Within site blocks form ed by the streets, new lots are allocated for
p rivate d evelop m ent. Pu blic u se areas are then d eterm ined by m easu ring the
squ are m eters in the p lanned streets, p arks, and so forth and com p aring them
to the total area of the p roject (Doebele, 1986). Each cad astral p arcel is
converted into bu ild ing lots. After the p roject the city w ill be able to
reorganise u rban d evelop m ent, and at the sam e tim e, the p rivate land hold ers
will receive new lots which are as near to the same location as possible to their
original land.
2.7 Objectives of land readjustment
Land read ju stm ent aim s to m anage existing land stru ctu re w hen a system atic
u rban land d evelop m ent is requ ired . The m ain objectives of a land
readjustment project may be given as follows:
Development of new urban sites
Redevelopment of an already urbanised area
Improvement and expansion of public facilities
Disaster rehabilitation
2.8 Procedures in land readjustment
There are a nu m ber of step s to accom p lish in a land read ju stm ent p roject.
Differences in the national land p olicies from one cou ntry to another m ean
that, to ad op t the land read ju stm ent p roced u res, slight changes w ill be
exp ected . H ow ever, the step s in the p rocess w ill be given here in a general
context. A sequ ential ord er of land read ju stm ent p roced u res is also given
Table 2.2.
2.8.1 Decision of the authorities
To implement a land development project in a particular area, there must be a
real land need for p u blic and p rivate requ irem ents. For this p u rp ose, a land
read ju stm ent p roject is d esigned and p rop osed to local au thorities by the land
p lanning branch. Then the city cou ncil d iscu sses the alternative ap p roaches
and m akes a d ecision abou t the p roject. If the p roject is ap p roved by the
cou ncil, all land ow ners in the p roject area, inclu d ing corp orate, com m u nal,
and association ownerships are informed. Land owners in the project area are
asked to contribu te an equ itable p ortion of their land to bu ild p u blic facilities.
The rest of the project steps are then carried out by municipality.
2.8.2 Land survey of project area
The basic land su rveying w orks have to be com p leted before the p roject is
began. All need ed legal record s and m ap s su ch as zoning p lan, p rop erty
map , and top ograp hical m ap s are u p d ated . Meanw hile, su rvey control
d ensification is red esigned for fu rther u se. After u p d ating the requ ired
d ocu m ents, it has to be ensu red that the p rop erty and top ograp hical m ap s
reflect the final layou t of the p roject area. All kind s of bou nd aries su ch as
cad astral p arcel, p roject area, zoning d etails and site block ou tlines m u st be
show n p recisely in a base m ap . Using this m ap , site blocks are d em arcated in
the field and fixed block corners are re-su rveyed and new p oint coord inates
are calculated.
Table 2.2 Steps in urban land readjustment process
1. Determination of the project area
2. Approval of the project by the city council
3. Announcement of the project
4. Completion of detailed plans
5. Survey of the project area, boundaries
6. Owner identification
7. Determination of land characteristics
8. Drawing the implementation plan
9. Re-examination of land records
10. Calculation
11. Subdivision layout
12. Exchange, division, and consolidation of land
13. Land distribution
14. Compilation of records on distribution
15. Compilation of replotting plan
16. Submissions of reports to the authorities
17. Approval of the reports
18. Announcement of replotting plan
19. Hearing objections
20. Notification to landowners
21. Making final corrections
22. Demarcation of new boundaries
23. Drawing of cadastral map
24. Registration of new land rights
25. Distribution of new land titles
26. Final reports
2.8.3 Calculation
In a general term , the calcu lation p rocess of land read ju stm ent based on three
steps (Figure 2.2). These steps are;
(1) All land p arcels are p u t together to form a w hole. This
only hap p ens in a m athem atical w ay and d oes not ap p ear
in the land register.
(2) The p u blic u ser areas su ch as road s, green band s, schools,
hospitals are subtracted from this whole.
(3) The rest of the p roject area is su bd ivid ed into bu ild ing
land and redistributed to the original landowners.
In ord er to follow these step s, the p roject area is d eterm ined on the base m ap
by d raw ing a p recise p roject bou nd ary. Accord ing to this bou nd ary, all land
p arcels w ithin the p roject area are d eterm ined by the registered legal p arcel
size. At the sam e tim e, basic p rop erty inform ation su ch as p arcel ID, location,
registration nu m ber, ow ner nam es, ad d ressees, and other interests are also
extracted for further use.
Regard ing the p roject bou nd ary, if a land p arcel is entirely involved in the
p roject, the p arcel's registered size is taken as an inp u t area. Som etim es, a
land p arcel can be d ivid ed into tw o or m ore lots by the p roject bou nd ary. In
this case, only the area w hich is insid e the p roject bou nd ary is taken as an
input area.
2 5
Previous situation 1
3 4
STEP - I
I. Union of plots (Mathematical)
STEP - II 1
II. Subtraction of areas for public use
2 3 5
STEP - III
1
3 4 5
III. Subdivision of building land
Figure 2.2 Calculation steps in land readjustment process
The d eterm ination of p articip ating land p arcels is follow ed by the calcu lation
of site block areas. Using these variables, a single contribu tion coefficient is
d eterm ined w ith the form u la [2.1] in Figu re 2.3. This coefficient rep resents
the contribution percentages (CP) of each landowner by land portion. The CP
is then ap p lied to each of the land p arcels to d eterm ine their ind ivid u al
contribution rates (CR).
In ord er to d eterm ine the contribu tion rate, tw o d ifferent calcu lation m ethod s
are p ractised in land read ju stm ent. One of them is based on market v alue
ap p roach and the other based on areal ap p roach. Som e nu m erical exam p les
based on these two methods are given in Appendix A.
2.8.4 Land redistribution
Land red istribu tion is the m ost im p ortant and com p lex step of the entire
p rocess. The m ain p u rp ose of land red istribu tion is to create new bu ild ing
lots by zoning stand ard s and then reallocate the cad astral p arcels into the
created lots. Within this fram ew ork land exchange betw een ind ivid u als and
the com m u nity, and also am ong ind ivid u als is p erform ed . Land hold ers
receive new lots in a d ifferent size and location to their original land p arcel.
Often several p ieces of fragm ented land s p arcels are consolid ated into one
parcel. The p arcel sizes and m inim u m area of new lots are given by the
zoning p lan. The basic p rincip le in the land d istribu tion p rocess is to keep
land in its original location as much as possible, at least in the same block.
P
Site Block
Cadastral parcel
Project boundary
CP = 1 - ( [ B ] / [ P ] ) [2.1]
RP = 1 - CP [2.2]
CR i = CP * P i [2.3]
NP i = P i - CR i [2.4]
where:
CP = The contribution percentage within the project

[P] = Total area of the input land parcels
[B] = Total area of the site blocks
RP = The percentage of land given back to original landowners
Pi = Land parcel area
CR i = The contribution area for a parcel
NP i = Land area given back to owner
i = 1,2,...,n (n = the total number of land parcels involved in the project)
Figure 2.3 The equations in land readjustment
2.8.5 Final registration
After the land d istribu tion, a tentative su bd ivision layou t is annou nced to the
land ow ners. For a certain d u ration, land hold ers can object to the p lan by
w riting their objections to the au thorities. Land ow ners d em and s are
consid ered by the p lanning com m ittee and final d ecisions are m ad e. After
p ossible corrections, new cad astral m ap s are d raw n and new lots are
registered by the land title office. N ew land titles are p rep ared and
distributed to the original landholders.
2.9 Characteristics of land readjustment
Land read ju stm ent basically increases the site u tilities w hen the u rban
infrastru ctu re is com p rehensively d evelop ed and im p roved . Accord ing to
N CPB (1982) and N akam u ra (1986), land read ju stm ent can be characterised
by the following features:
(1) The infrastructure of the urban area can be comprehensively

improved on an areal basis.
A com p rehensive p roject p lan for the effective u se of the land can be
m ad e, and the follow ing im p rovem ents can be sim u ltaneou sly carried
ou t. Pu blic facilities su ch as road s, p arks, rivers and canals can be
created and / or d evelop ed ; land for schools inclu d ing nu rsery schools
and kind ergartens, and p u blic office bu ild ings can be secu red . Su p p ly
or disposal facilities for utilities such as water, sewerage and gas can be
d evelop ed effectively and econom ically. As a resu lt, site u tility is
increased when the urban infrastructure is comprehensively developed
and improved.
(2) Landowners receive equitable development benefits.

When the d evelop m ent p roject is lim ited to a road , a p ark or a river,
cost d efraym ent benefits are often u nfairly and p artially shared . For
exam p le, som e ind ivid u als w hose rights hap p en to fall w ithin the
p roject area lose them throu gh p u rchase, w hile others m ay sim p ly
benefit because their land, previously located in the back, acquires road
frontage. In land read ju stm ent, the d evelop m ent cost and benefits are
fairly shared through equitable contribution and replotting disposition.
(3) Residents of the project area can maintain their normal life.
Ow ners of land , leasehold ers and other p ersons w ho have som e rights
w ithin the p roject area can m aintain their everyd ay life and bu siness
activities without interruption during the project period.
(4) No waste in land use is created.

Since lot shap es and land cond itions are altered over the w hole p roject
area in a land read ju stm ent p roject, there are no irregu larly shap ed
and / or excessively sm all lots created as in the case of the land
purchase method. Therefore, site utility does not decrease.
(5) The project is usually limited to the infrastructure of the urban area,
and does not include the direct improvement of buildings in the
area.
The p roject im p lem enting bod y d oes not d irectly bu ild or im p rove
bu ild ings w ithin the p roject area. Often in p ractise, ow ners of
bu ild ings rebu ild them or renew their fu nctions w hen they are affected
by replotting.
(6) The project procedures are complex and it takes time for the
landowners to understand them.
The p roced u res of land read ju stm ent are com p lex and requ ire
p rofessional know led ge so that it takes tim e for the ow ners to
u nd erstand the p roject itself. In ad d ition, since m any people's interests
are involved , it is necessary to listen to their op inions fu lly, and ad ju st
the project accordingly, which also requires much time.
(7) Participation by all landow ners is a necessary condition of a land

readjustment project.
Contribu tion is an im p ortant characteristic of land read ju stm ent.
Land ow ners w ithin the p roject area are asked to contribu te an
equ itable p ortion of their land s in ord er to accom m od ate p u blic
facilities. Althou gh land ow ners lose a sm all p ortion of land , they

receive great benefit throu gh the p roject's ability to m axim ise site
utilisation by regularising shapes of lots.
(8) Land rights are transferred after the replotting.

Rep lotting is a u niqu e characteristic of the p rocess. It refers to the
red istribu tion of p re-ad ju stm ent sites m inu s contribu tion land s for
p u blic facilities. All existing land rights and interests from p reviou s
sites are transferred to new ly-rep lotted sites. This transfer of rights is
called replotting disposition.
(9) Development costs of a land readjustment project are low er than any
other type of land development projects.
In a land read ju stm ent, both costs and benefits of d evelop m ent are
shared by all land ow ners throu gh equ itable contribu tions and
replotting disposition.
(10) The land registration books, cadastral maps, street names and
number can be arranged in an orderly manner, clarifying the
boundaries of ownerships.
Du ring the land read ju stm ent p roject land p arcel bou nd aries are
resurveyed and redemarcated according to the detailed urban planning
p rogram m e. All related land record s are reorganised . Therefore, the
p ractice of land read ju stm ent can be consid ered as a m ethod of
strengthening of the cadastre.
2.10 Advantages of land readjustment
Land readjustment is a crucial land management tool in urban planning when
su itable reform ation of p rivate land is necessary for resid ential p u rp oses. It is
a m ethod by w hich the city governm ent, other d esignated p u blic bod ies, or
even p rivate associations can p articip ate d irectly in the p rocess of
u rbanisation and thereby share in its p rofits (Mu ller, 1992). Land
read ju stm ent p rojects p rovid e an op p ortu nity for sim p ly and inexp ensively
resu rveying the land and d em arcating new and clear lines (Chou and Shen,
1982). Therefore, the p ractice of land read ju stm ent can be consid ered a w ay
of strengthening the reorganisation of cad astre. Minerbi (1986) p ointed ou t
that land readjustment;
mobilises land ow ners in a tem p orary association for joint
d evelop m ent of their fractionalised land p arcels as a single
planning unit,
phases p rivate stru ctu re d evelop m ent w ith p u blic
infrastructure provision,
coordinates p u blic p lanning w ith p rivate d evelop m ent w ith a
detailed administrative process,
improves d istricts by p rovid ing infrastru ctu res and facilities in
ap p rop riate locations accord ing to a d istrict d esign p lan by
reserving private land at no cost to the government,
appreciates land valu es throu gh p u blic im p rovem ents and
increased site utility,
finances d evelop m ent by the sale of ap p reciated reserved land
to new investors.
In ad d ition, som e of the ad vantages of land read ju stm ent has been given by
Doebele (1982) as follows;
Land read ju stm ent p erm its fragm ented and scattered
land hold ings to be consolid ated into a single u nit for better
planning, servicing, and subdivision,
Land read ju stm ent p erm its the p u blic agency concerned to
recover costs w hile p rivate ow ners receive som e of their land
back, ready for building,
A p rerequ isite and ad vantage is that it renew cad astral and
land registration in those areas of a city u nd er m ost p ressu re
for development,
Land read ju stm ent p erm its an ord erly and efficient m ethod of
obtaining sites for schools, p arks, m arkets, and all other
needed public buildings and facilities.
Besid es the im p roving land u tilisation for governm ent, land read ju stm ent is
also a significant m ethod for land ow ners to econom ically im p roves the u se of
their land . In essence, som e benefits of land read ju stm ent for both
government and landowners may be given in Table 2.3:
2.11 Shortcomings of land readjustment
While land read ju stm ent rem ains a strong u rban d evelop m ent and
red evelop m ent tool, a nu m ber of shortcom ings of the m ethod has been
identified by Nishiyama (1980), Miyazawa (1982), and Satoh (1986).
A significant criticism is that land read ju stm ent has su cceed ed in p rovid ing
physical facilities, but that it neglected social aspects of urban life and failed to
im p rove the com m u nity environm ent as a w hole. An equ ally significant
criticism is that the m ajor beneficiaries are only large land ow ners. At the
sam e tim e, land ow ners have p rotested at red u ction of their land area w ithou t
compensation through the readjustment process.
Table 2.3 The benefits of land read ju stm ent for the governm ent and
landowners.
Land readjustment benefits for the government
Com p ensation exp enses for p u blic-u se land are greatly

red u ced so that the p rovision of p u blic areas is cap tu red in a
more economical way,
A zoning p lan is realised in a short tim e, and u rban land
development projects are achieved rapidly,
Tax revenu e increases w ithin p roject area. This p rovid es an
extra source to government,
The land d evelop m ent p rogram m es in u rban fringe areas are
systematically carried out,
The existing cad astral record s are u p d ated , reorganised and
cadastral administration is improved.
Land readjustment benefits for landowners
After the p roject, land valu es increase very rap id ly and land
become more valuable for landowners,
A cad astral p arcel is re-shap ed and transform ed into a
sufficient site lot that can be used more economically,
Fragm ented sm all p arcels are consolid ated into a new
building parcel so that land use are maximised,
Becau se of the effects of land read ju stm ent p roject are sam e
for every land ow ners, d isp u tes abou t land p lanning inju stices
are reduced,
At the end of the p roject, basic p u blic services are su p p lied to
new lots, therefore the new social services are brou ght into to
the project area,
There is no extra charge to land ow ners for the p roject
exp enses, excep t that they forfeit p art of their land . In m any
case, all project expenses are met by the municipalities.
H ow ever, Doebele (1982) d iscu sses that the theory of land read ju stm ent is
sim p le bu t its ap p lication can becom e com p lex. In fact, three d ifferent issu es
are involved:
(1) Equity going into project. Som e ow ners w ill have flat, easy-to-
develop land that already has high value for farming. Others will have
hilly, rocky, or m arshy land m ore costly to d evelop . Equ ity w ou ld
seem to ind icate that the form er ow ners shou ld receive better
treatment in the calculations than the latter.
(2) Equity during the project. The actu al constru ction of road s and other
urban services can take years in a large project. Some land plots will be
im m ed iately im p acted , p articu larly those falling in the beds of planned
street, w hile other land w ill be m u ch less affected . Equ ity ind icates
that som e ad ju stm ent be m ad e for those w ho have m ost d ifficu lty and
loss of income during the construction.
(3) Equity after the project. The new p lan for the area m ay d esignate
som e areas for com m ercial u ses, som e for ind u strial or other
p rod u ctive u ses, som e for high-d ensity resid ential d evelop m ent, som e
low-d ensity resid ential u se, and so forth. Each of these d esignations
carries a d ifferent p er squ are m eter valu e. A lot near the centre of a
large p roject and d esignated com m ercial m ay have m any tim es the
value per square meter of a low-density residential lot on the periphery
of the p roject. An equ itable system w ou ld ad ju st for these d ifferences
so that an ow ner w hose land hap p ens to be d esignated com m ercial, for
exam p le, d oes not receive a w ind fall com p ared to another w hose land
the plan has put to a less valuable use.
2.12 Requirements for land readjustment
Accord ing to Davis (1976) and Doebele(1982), som e of the requ irem ents for
land readjustment may be given as follows:
(1) In m ost cou ntries, m ajor new national legislation w ill be
required and, in some cases, constitutional amendment.
(2) The national, p rovincial, and m u nicip al governm ents m u st
su p p ort the id ea. In p articu lar, the key m inistries that d eal
w ith p u blic w orks shou ld be thorou ghly sym p athetic to
making it work.
(3) There m u st be real and generally recognised need . This is
certainly so in a w ell-d evelop ed p olitical d em ocracy. Land
read ju stm ent is slow , com p lex, and exp ensive; realisable
and com m ensu rate benefits m u st be obtained from the
process.
(4) There m u st be a reasonable stable and strong national
econom ic situ ation. Pu blic assistance of variou s kind s,
usually including subsidy, is needed in substantial amount.
(5) The cou ntry m u st p ossess an efficient system of
cad astration, title registration, and objective real-property
appraisers.
(6) There m u st be, at the local level, an ad equ ate level of
technical and professional knowledge.
2.13 Selected land readjustment applications
Land read ju stm ent has been w id ely p ractised by som e cou ntries arou nd the
w orld . Particu larly, u nd er the d ifferent nam es as stated in section 2.6, the
land read ju stm ent has been u sed in Germ any, Jap an, Taiw an, Sou th Korea,
Canad a, Ind onesia, N ep al, Au stralia, and Tu rkey as an effective u rban land
d evelop m ent tool. These cou ntries have d ifferent land p olicies and land
registration system s. Becau se every cou ntry has its ow n land read ju stm ent
legislation, there is not one single land read ju stm ent m od el that has been
stand ard ised and u sed w orld -w id e. N evertheless, the m ain concep t of land
read ju stm ent has been com m only recognised by these cou ntries, even thou gh
im p lem entation and p roced u res are slightly d ifferent. In ord er to u nd erstand
how the p rocess has been p ractised , som e land read ju stm ent ap p lications in
Au stralia, Taiw an, Jap an, Germ any, and Tu rkey are su m m arised in the
following subsections.
2.13.1 Australia
Land read ju stm ent is know n in Au stralia as land p ooling (Archer, 1992). It is
a techniqu e for the financing and m anagem ent of the su bd ivision of p rivately
ow ned land into w ell-p lanned serviced bu ild ing sites. It is based on a
schem e, or p lan, p rep ared by a local m u nicip al cou ncil, after consu ltation
w ith the land ow ners involved . After p rop er ad op tion it constitu tes a bind ing
and com p u lsory p artnership am ong the ow ners for d esign, servicing, and
su bd ivision of their land s as a single estate, w ith both cost and retu rns being
shared among them (Doebele, 1982).
Land p ooling has been u sed only in the state of Western Au stralia, m ostly in
and near the state cap ital of Perth since 1951. The p rocess has been carried
ou t m ainly on land not occu p ied by ow ners and u su ally has yield ed
su bstantial p rofits, often w ith few er m anagem ent p roblem s than conventional
d evelop m ent. For this reason it has generally not been resisted by
land ow ners w hen they have been consu lted in ad vance, even thou gh after
consu ltation it is com p u lsory. An im p ortant asp ect of the Au stralian system
is that d etailed w ritten statem ents of the costs and benefits are u su ally
available to each land ow ner at the key stages of the p roject. While som e
asp ects are com p u lsory for m inority ow ners, every ow ner has enou gh
information to act in his best interest as the project proceeds (Archer, 1982).
In the Au stralian system , the cou ncil p rep ares a schem e p lan and text. The
Valuer assesses the market value of each parcel (excluding any buildings) as it
is at the tim e, and then as if the p arcels had been su bd ivid ed into fu lly
serviced bu ild ing sites. The cost of su bd ivid ing and p rovid ing services are
com p u ted by the cou ncil, and the nu m ber of bu ild ing sites need ed to recover
these cost (cost-equ ivalent land ) is com p u ted . These sites are tentatively
id entified , and the rem aining sites are allocated am ong the p articip ating
land ow ners. These ow ners are inform ally notified of the allocation before the
schem e is officially exhibited . After p u blic exhibition, ow ners m ay file
objections, which are reviewed by the town planning board in its report to the
m inister for u rban d evelop m ent and tow n p lanning. After his review and
approval, the scheme becomes legally binding.
The m u nicip ality then m akes a form al land ex-change offer to each ow ner,
w ho m ay accep t or requ est arbitration if there is a d isagreem ent abou t the
valu es assigned . Meanw hile, the m u nicip ality takes ou t a short-term bank
loan and , throu gh the m inister of p u blic w orks, takes over the land and
carries ou t the su rveying and engineering w orks necessary to create finished
bu ild ing sites. At this p oint, any ow ners w ho w ant to get ou t of the p roject
may claim cash compensation for the land taken. Most owners, however, find
it m u ch m ore p rofitable to stay in the p roject and receive back their share of
building sites.
When the constru ction w ork is com p leted , road s, p arks, and other p u blic
land s d ed icated , and the su bd ivision registered , each land ow ner receives
back his share of sites, w ith w hatever cash ad ju stm ent m ay be necessary to
m aintain the sam e relative valu es as valu es of the land p u t into the p roject.
The cou ncil sells its cost-equ ivalent lots at au ction and u ses the p roceed s to
p ay off the bank loan. Any su rp lu s is d istribu ted am ong the p articip ating
owners.
An interesting featu re of the Au stralian system is that land s are valu ed only
w hen they go into the p roject. This establishes a p ercentage share for each
ow ner. When the p roject is com p lete, the ow ner receives exactly the sam e
p ercentage of the total valu e of all the lots created , less those taken as a cost-
equivalent land. If the lots actually received back have less or more appraised
valu e than the p ercentage share, a cash ad ju stm ent is m ad e so that each share
is kept equal (Archer, 1982).
2.13.2 Taiwan
For d ecad es after the fou nd ing of the rep u blic of China in 1912, w ars and
social com m otions p revented the solu tion of land p roblem s in the cou ntry.
To solve China's land p roblem s, Dr. Su n Yatsen called for equ alising land
rights, allotting land to farm ing, m axim ising retu rns from land , and assu ring
equ al access to benefits from land . These id eals w ere incorp orated in the
rep u blic's constitu tion, ad op ted in 1949. In those d ays, Taiw an reflected the
situ ation in m ainland China, the d istribu tion of land ow nership w as u nequ al;
land tenancy w as p revalent; rents w ere too high; tenant farm ers had no
reasonable rights; agricu ltu ral p rod u ction w as low ; and the tenant's life w as
precarious (Lee, 1982).
When the governm ent of the Rep u blic of China m oved to Taiw an in 1949, the
governm ent d eterm ined to m ake the island p rovince a m od el for all of China.
In Taiw an, agrarian land reform , w hich had been p art of the p hilosop hy of
Su n Yatsen, bu t w hich cou ld never be realised on the m ain land , w as
vigorously implemented in the early 1950s. However, this reform, which split
u p large estates into p lots ow ned by the tillers, created new p roblem s. The
new p lots w ere sm all, irregu lar, and som etim es in d ifferent locations. For
efficient p rod u ction, it w as necessary to reu nite them in a w ay that w ou ld
p erm it com m on irrigation system s and u se of m achinery. Therefore, agrarian
land consolid ation w as begu n on a trial basis in 1958, and extend ed to a
national p rogram in 1962. From the agricu ltu ral p rod u ctivity p oint of view ,
the results were quite successful (King, 1977; Doebele, 1982).
In sp ite of this su ccess in ru ral areas, Taiw an has been slow to ap p ly sim ilar
p rincip les of land read ju stm ent to u rban d evelop m ent. In Kaohsiu ng, w hich
is the second largest city of the cou ntry, u rban p op u lation su rged , p rim arily
in the form of nu m erou s squ atter settlem ents of high d ensity and very p oor
hou sing and sanitation cond itions. Fragm ented and tiny land hold ings, p lu s
the squ atting, rend ered the p rivate m arket ineffective (Chou and Shen, 1982).
To solve these p roblem s, the m u nicip al governm ent had extrem ely lim ited
financial resou rces. H ow ever, an active m u nicip al ad m inistration in
Kaohsiu ng has d evelop ed its ow n ru les and p roced u res for u rban
applications.
The m u nicip ality had tw o alternatives to d eal w ith these p roblem s. First,
large-scale exp rop riation of p rivate land s, w hich w ou ld be cleared of existing
irregu lar hou sing, w ere d evelop ed as a u nified p roject w ith ad equ ate p u blic
services, su bd ivid ed , and then resold to ind ivid u al d evelop ers. Second
alternative w as the land read ju stm ent, w hich w ou ld achieve the sam e end s,
bu t by taking p art of the land to finance the installation of services and
returning the remainder to the original owners.
After consid ering the alternative ad vantages and d isad vantages, the city
chose land read ju stm ent as its m ain vehicle for u rban d evelop m ent. In
Kaohsiu ng, the land office stated that the land for p u blic u ses, engineering
exp enses, and consolid ation exp enses shou ld all be contribu ted by the
benefited original landowners. Furthermore, such liability could be paid with
land instead of cash. Accord ing to a resolu tion of the city cou ncil, the
m axim u m contribu tion am ou nt cannot exceed 40 p ercent of the total original
area. Moreover, the land u sed as p aym ent m u st be vacant land (Chou and
Shen, 1982).
Ap p raisal of land valu e before and after read ju stm ent is based on the Land
Law . Accord ing to this law , the read ju sted p lots m u st be red istribu ted in
com p liance w ith the original land or p rice of the original p lots; after the
read ju stm ent, land ow ners w ho su ffer losses shall be com p ensated by those
w ho enjoy the benefits. H ow ever, there is no criterion for d eterm ining the
land p rice in this law . Generally, in assessing valu e, ad joining land s w ith
sim ilar p rices are consid ered and their valu e is u sed as a stand ard for the
ap p raisal of land s before the p roject. For ap p raisal of the land valu e after the
p roject, it is necessary to estim ate the likely d evelop m ent after read ju stm ent,
u sing for reference real-estate sales and p u rchases in neighbou ring areas
already developed to determine the value of land.
By the end of 1978, a total of 2,175 hectares in forty-nine areas have been
com p leted u nd er the land read ju stm ent p rogram m e. Statistics on sixteen
areas w here u rban land read ju sted ind icate that the increase in land valu es
ranges betw een 560 and 163 p ercent. The governm ent estim ate that
u rbanised land w ill exp and by 1996 to a total of 161 500 hectares, d ou ble the
p resent area. In view of this, the read ju stm ent of u rban land s m u st be
accelerated to forestall difficulties that might obstruct growth (Lee, 1982). The
governm ent is also w orking ou t incentives to encou rage land ow ners to
organise them selves for the p u rp ose of introd u cing read ju stm ent of their ow n
lands.
2.13.3 Japan
As in Taiw an, land read ju stm ent in Jap an had its origins in agricu ltu ral land
consolid ation to increase the efficiency of p rod u ction. In 1919, the first City
Planning Act legitim ised land read ju stm ent for u rban p u rp oses. Land
read ju stm ent becam e so p op u lar that it d iverted energies from conventional
city p lanning, and w as of great im p ortance in re-bu ild ing, both after the great
earthqu ake of 1923 and bom bings of World War II, as w ell as in solving the
land p roblem s connected w ith the constru ction of the high-sp eed rail line
from Tokyo to Osaka. In 1954, land read ju stm ent legislation w as enacted .
Land read ju stm ent has been one of the m ost im p ortant forces shap ing
Jap anese u rbanisation (Doebele, 1982). Of a total u rban area of 5,600 squ are
kilom etres in Jap an in 1965, abou t 27% either had been or w ere u nd er land -
read ju stm ent p roced u res. From 1945 to 1965, som e 900 squ are kilom etres
w ere affected , m u ch of it arou nd cities, often by p rivate associations formed
for this purpose (Miyazawa, 1982).
In Jap an, five grou p s are legally allow ed to execu te a land read ju stm ent
p roject: p rivate initiators, associations, local p u blic bod ies, ad m inistrative
agencies, and p u blic corp orations. For each typ e of initiator there are slightly
d ifferent p roced u res, bu t all involve p u blic exhibition to com m ent and
u ltim ate review by either the governor of the p refectu re or the m inister of
construction.
In the land read ju stm ent p roced u re, equity is the m ost im p ortant issu e to
success of the project. There are two levels. One is the economic effectiveness
of the project: that is, the increase of private land values brought about by the
p roject. The other im p ortant factor is equ ity betw een each land ow ner
involved . The p rincip le of rep lotting not only consid ers the equ ity of land
valu e, bu t also the location, natu re of the land , the area of lot, and other
factors affecting each ow ner (H ayashi, 1982). In Jap an, the rep lotting w ork is
p erform ed by the evaluation method of land valu e, or the areal method, or a
combination of the two (Nakamura, 1986).
Evalu ation is norm ally based on the street-valu e m ethod , w hich has tw o-tier
evalu ation. One relates to streets, and the other ind ivid u al lots. The street
valu e norm ally u ses ind ex figu res consisting of a street coefficient , an
accessibility coefficient, and a lot coefficient. The street coefficient norm ally
consid ers the cond ition of the street, its w id th, slop e, existence of sid ew alk,
continu ity, and so on. The accessibility coefficient d eals w ith the p roxim ity of
railw ay stations, bu s stop s, schools, p arks, and other am enity facilities. The
lot coefficient deals with the environment condition of the land, or lot, such as
density of the area, soil conditions etc. These three coefficients are aggregated
to achieve the street valu e. This valu e m u st be ad ju sted accord ing to land -
m arket p rices in the area, ju d ged by sales or by su ch ind exes as the p rop erty
tax evaluation.
The areal m ethod is based on the area itself. This m ethod is ad op ted w here
land p rices are sim ilar or w here a p oor street p attern rend ers the street-value
m ethod inap p rop riate. The areal m ethod is extensively u sed for p erim eter
d evelop m ent by p rivate land read ju stm ent associations, becau se it is m ore
easily u nd erstood by the land ow ners. The contribu tory area is d ivid ed into
tw o categories. One category is the cost -equ ivalent land and com m u nal
facility sites. The cost-equ ivalent land is sold to p ay for infrastru ctu re and
other costs of the p roject. The other category com p rises the ind ivid u al
contribu tion area m ainly narrow street sites and the p art ad jacent to the lots
of m ajor streets. In other w ord s, exp and ed street sites u nd er eight m eters are
contributed by adjacent lots (NCPB, 1982).
The land read ju stm ent p rocess gives land ow ners and lessees the op p ortu nity
to exp ress their objections to execu tion of the p rojects u nd er the
Ad m inistrative Ap p eals Law . In Jap an, the largest nu m ber of com p laints are
concerned w ith rep lotting, follow ed by d isp u tes abou t the am ou nt of m oney
for ad ju stm ent. Land ow ners often feel u nfairly treated becau se of the
red u ction of land area w ithou t com p ensation throu gh the p rocess. Thu s,
opposition against land readjustment has become rather strong; a nation-wide
organisation of opposing groups has been formed (Miyazawa, 1982).
H ow ever, the im p ortant role of land read ju stm ent in p lanned u rban
d evelop m ent has been com m only recognised in Jap an. The p rojects affect
m any field s, su ch as hou sing land su p p ly, u rban-sp raw l p revention,
reconstru ction after d isasters by w ar and fire, and red evelop m ent in
commercial areas.
2.13.4 Germany
In Germ any land read ju stm ent has a trad ition of abou t one hu nd red years
(Mu ller, 1992). As in other cou ntries, land read ju stm ent in Germ any began
w ith the p roblem of consolid ating agricu ltu ral land for greater p rod u ctivity.
With ind u strialisation, u nrestrained u rban d evelop m ent resu lting from the
hap hazard m arketing and d evelop m ent of sm all lots p rod u ced legislation to
com p el the consolid ation of u nd evelop ed land . If land ow ners are u nw illing
to volu ntarily read ju st and consolid ate land into reasonable areas for
d evelop m ent, m u nicip alities m ay force ord erly d evelop m ent by: com p u lsory
read ju stm ent; com p u lsory exp rop riation; or consolid ation of farm land s or
woodlands. In general, compulsory readjustment is used for peripheral areas;
com p u lsory exp rop riation is u sed in areas for the p rom otion of u rban
development; and consolidation is used in agricultural areas.
All three system s m ake u se of the highly d evelop ed Germ an system of
valu ation board s, w hich since 1960 have been requ ired to collect and analyse
data on all real estate transactions. Land valuation boards receive copies of all
contracts of p u rchase for real estate. Proced u res for analysis are set forth in
sp ecial fed eral legislation. Projects carried ou t by com p u lsory read ju stm ent
take abou t one to three years for rep arcellisation, and abou t tw o years or less
for the installation of services. Com p u lsory exp rop riation takes m ore tim e,
and ind ivid u al p arcels are generally not on the m arket for abou t six years and
may take more than a decade to complete (Seele, 1982).
Com p u lsory read ju stm ent p rojects are alw ays carried ou t by local
governm ent and d o not requ ire the consent of the ow ners. In the land
read ju stm ent p rocess, m arket valu es are u sed in com p u ting both the
allocations of land before and after the p roject. The first valu e is rep resenting
the valu e of land w ithou t services, the latter valu e rep resents all the
increments that resu lt from ow nership of a fu lly serviced lot. Ind eed , even
the zoning d esignation is consid ered as p art of this latter valu e. H ow ever, no
m atter w hat the calcu lations, not m ore than 30 p ercent of the m arket valu e of
land contribu ted to the p roject can be taken. In a typ ical com p u lsory land
read ju stm ent p roject, abou t 15 to 20 p ercent of the land w ou ld be contribu ted
for u se as road s and green areas, and the land ow ner w ou ld then be assessed
in cash u p to 5 to 10 p ercent of the m arket valu e of his inp u t to p ay for
constru ction cost (Doebele, 1982; Seele, 1982). Thu s, the Germ an system
basically d iffers from the others in that contribu tions to recover the costs of
services are normally made in cash, not in the form of cost-equivalent land.
There are tw o d ifferent m easu res to red istribu te the new land . The p ortion of
red istribu tion the ind ivid u al land ow ner is entitled to resu lts from the relation
either of market value or of area. In ru ral regions, land readjustment by area is
m ore com m on. In u rban regions and in red evelop m ent areas land
readjustment by value is p referred . To d ecid e on one of those tw o m easu res,
there are different conditions and results to be taken into account.
Land read ju stm ent by area can only be ap p lied if the land valu es are qu ite
hom ogeneou s. In this case the land contribu tion for p u blic-u se cannot exceed
30 p ercent of the land ow ners ind ivid u al area. Concerning land read ju stm ent
by valu e the w hole red istribu tion area is d ivid ed am ong the land ow ners,
excep t the areas need ed for p u blic facilities. Each land ow ner gets a p lot
corresp ond ing to at least the sam e valu e he had before the p roject. The land
valu e increase cau sed by the land read ju stm ent p roject is com p ensated either
by m oney or land . The m u nicip ality has to p ay for ad m inistration costs. In
generally, the m u nicip ality is able to refinance by selling the areas of land
contribu tion w hich w ere not necessary for p u blic facilities. The constru ction
of sew erage, road s and green areas has to be p aid by the land ow ners u p to 90
percent of the cost as a infrastructure contribution (Muller, 1992).
The land ow ners can ap p eal against land read ju stm ent w hen the m easu re is
introd u ced and w hen it is com p leted . Ju d icial d eterm ination is by sp ecial
cou rts of law and can only be m ad e after objections to the au thority
resp onsible for the p roject. Protests against the land reallocation p lan are
m ostly against the valu ation of either the inp u t or ou tp u t in case of
com p u lsory land read ju stm ent by valu es or against the am ou nt of land
contribu tion in the case of com p u lsory land read ju stm ent by area. At least 90
percent of all appeals are based on this (Seele, 1982).
2.13.5 Turkey
In Tu rkey, the lim itation of financial, hu m an, and technical resou rces restrict
the u rban land d evelop m ent p rocess. Becau se of these lim itations the
governm ent has d ifficu lty in controlling ru ral-to-u rban land -u se change.
There is a rap id im m igration from ru ral areas to the cities and the
ap p rop riated land is not available in u rban fringe to resp ond to im m igration
d em and s. This creates land allocation and settlem ent p roblem s arou nd the
cities. As a result, many squatters have established patterns of land use rights
that op erate ou tsid e of the national cad astral system . The land allocated for
public-u se has been p artly occu p ied by squ atters (Dale and McLau ghlin,
1988).
In ord er to p rovid e land for both p u blic and p rivate sectors and to control
u rbanisation the governm ent acqu ires land only in the cities and carries ou t
all necessary tasks itself (Rivkin, 1983).
Most of the land d evelop m ents are p erform ed by local au thorities u sing
m aster p lans and zoning regu lations (Gu rler, 1983). Basically, there are three
d ifferent land d evelop m ent m ethod s w hich are p ractised by the governm ent.
These are; Land compensation, Voluntary method, and Land readjustment.
Turkey has been discussed as a case study for this research. Therefore, details
abou t these land d evelop m ent m ethod s, p articu larly land read ju stm ent
applications in Turkey, are given in Chapter 7.
2.14 Chapter summary
This chap ter has attem p ted to ou tline the concep t of land read ju stm ent. The
definition of a land readjustment method was made. The current status of the
method including its objectives, requirements, and its role to control the rural-
to-u rban land u se changes have been p resented . Som e land read ju stm ent
applications from different countries were also reviewed.
Land read ju stm ent is a p ow erfu l land m anagem ent tool w hich p rovid es great
op p ortu nities for local au thorities w hen p u blic and p rivate land is need ed for
u rbanisation. It is the p rocess of exchanging raw land for serviced land , and
therefore can easily be su ited to cou ntries w here governm ents have d ifficu lty
to acquire land for public and private requirements.
Althou gh land read ju stm ent is a very effective land p lanning p rocess in
controlling u rbanisation som e technical issu es lim it the p erform ance of land
read ju stm ent p roced u res. These issu es inclu d ing their p ossible solu tions w ill
be discussed in the following chapter.
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Tahsin Yomralioglu Chapter 2 : Land Readjustment

"Land read ju stm ent as a d ifferent ap p roach to

"Under land read ju stm ent p rogram m es, u nd evelop ed

the advantages and disadvantages of the method.

2.2 Urban development

concentration, d eterioration of living environm ents, necessity for p reventing

sites, sp raw l p henom ena. To increase the su p p ly of serviced land to

(1) There is first the need to id entify or select locations w here

growth should be accommodated.

(2) These locations shou ld be serviced in a cost-effective,

rather than a high-cost manner.

infrastru ctu re p rovision shou ld be reasonable. Typ ically

this m eans that costs shou ld be recovered from the

ultimate beneficiaries to the maximum feasible degree.

(4) There shou ld be m eans of encou raging the right typ e of

d evelop m ent on the land once it is serviced . Desirable

land u ses m ay be those that increase the access of p oor

fam ilies to hou sing and jobs; or that to d o not resu lt in

large increases in land valu es; or in general that p rom ote

any policy objective that it is felt to be worth while.

2.3 Land use control mechanism

contigu ou s land . One objective is to p rovid e p u blic am enities, su ch as op en

sp ace. Another is to increase efficiency of land d evelop m ent or

d istribu tional aim s su ch as m aking land available to all grou p s in the

(3) Building regulations

(4) Approval by government agencies

(5) Urban planning

improve efficiency, to provide land for public good and services.

p rotection of the rights of existing ow ners, althou gh it can be u sed m ore

Subdivision regulations govern the development of raw land for residential or

d etailed controls is to ensu re that d evelop m ents take accou nt of the

size, and quality of structures and the density of population.

involvem ent. Su bd ivision is an effective w ay of controlling land -u se, bu t

2.3.3 Building regulations

the m aterials to be u sed . They m ay also be ap p lied to the m aintenance and

the variations in climate, local standards, and other factors.

2.3.4 Approval by government agencies

Ap p roval by governm ent agencies is the m ain w ay in w hich controls over

granted tentatively on the basis of schematic designs of the proposed building

2.3.5 Urban planning

p lanning. Com p rehensive and m aster p lanning tend to assu m e a static or

slow-grow ing u rban situ ation, qu ite m anageable in term s of p u blic

w here a p rim e objective of p lanning is to m aintain the established ord er.

resources requires a more dynamic planning process.

become an ongoing process involving selective action in key areas. It requires

that p riorities be established and that p lanning and d ecision-m aking be

resp onsive to them . When the p lanning p rocess is u sed to gu id e key

investm ent d ecisions, it becom es an im p ortant p ositive tool in controlling and

in public resource allocation over time and space.

2.4 Land management methods

provision of access roads is followed by the extension of other services.

p rogram m e of u rban d evelop m ent and land m anagem ent m ay be selected .

Hudson, 1980; Davis, 1976).

are contrasted with land readjustment.

2.5 Historical overview of land readjustment

Ad ickes' Law , w hich w as ad op ted in Frankfu rt-am-Main in 1903. Ku p p ers

Revolution in Germany, building activities rapidly increased in Frankfurt-am-