Land Price and Influencing Factors in Tsingtao,China

Jie Han1, Fahui Wang1,2*, Huili Gong1, Xiaojuan Li1, Ying Cai1
1
College of Resource Environment and Tourism, Capital Normal University, Beijing, China
2
Department of Geography and Anthropology, Louisiana State University, Baton Rouge, LA
*fwang@lsu.edu

Abstract—This paper examines the spatial variation of land price in On this basis, this paper is intended to combine the spatial
Tsingtao and its contributing factors. The land price data include analysis and the mathematical statistics, and then derive the land
the auction prices of 4,244 lots in Tsingtao in2010. Three peaks of price regulations of distribution in Tsingtao.
land prices are observed in Tsingtao: downtown, Laoshan Scenic
Area and Huangdao Scenic Area. GIS is used to measure various
spatial factors such as proximity to the CBD, schools, hospitals, II. STUDY AREA AND DATA DESCRIPTION
cultural and sports venues, transit stations and the coastline. A
multivariate regression is used to assess the joint effects of these A. Study Area and Data Description
spatial factors. 1) Study area
Tsingtao is an ocean city located in the south of Shandong
Key words-Tsingtao; urban land price; proximity; trip; Peninsula, which is economically one of the most successful
multivariate regression, areas of China. (Fig. 1) The study area includes auction prices of
4,244 sample plots involving three types of land use: residential,
I. INTRODUCTION industrial and commercial. It contains seven administrative
Real estate is unprecedented prosperous followed by districts: Shibei, Shinan, Licang, Laoshan, Chengyang,
development of urbanization in China. At the same time, there Huangdao, Gaoxin and BaoShui. The urban area is surrounded
are lots of urban land price testaments over the spatial on three sides by the sea and the topography changes from higher
distribution as the accumulation of auction price data and the to lower in the east. There are lots of hill in Tsingtao area. The
development of microscopic analysis tool. coastline is 870 kilometers long. Examining the relationship
between the spatial variation of land price in Tsingtao and its
In most of these studies land price always evolved as a contributing factors is good for economic development and its
substitute for the location utility. These researches can almost be eastward, westward and northward expansion in Tsingtao.
divided into two perspectives: urban economics and urban
geography. In urban economics perspective, people analyze the
relationship between land price and main location factors
by .economic measurement model and then explain the spatial
distribution and evolution in city. Price gradient is the important
index of measuring price distribution morphologies. For example:
three types of hypothesis based on Alonso rent model: single
center model, polycentric model and without prior to assuming
urban spatial structure [1]. While in urban geography perspective,
researchers pay attention to the technology of representation,
various spatial analysis technologies are in common use. The first
land price map is Minneapolis CBD price map using point
symbol method by Hurd [2]. Antsey represented land price of
Barbican in Landon by using isoplethic surface method [3]. Knos
created quality base method to represent land price of Topeka in
American [4]. Then Howes drew residential land price spatial
distribution in Norwich using isoplethic method also [5]. Pack &
Cooley tried to draw residential property price map by GIS, but
the scale was too small [6]. Wyatt expressed land value more
accurate based on block [7]. Figure 1. Location of Tsingtao and distribution of sample lots.

978-1-61284-848-8/11/$26.00 ©2011 IEEE

 2) Data source and pre-processing map of price using Kriging interpolation in spatial analyst
For examining the spatial variation of land price and its module. (Fig. 2) Three peaks of land prices are observed in the
contributing factors, this paper introduced indexes as followed: map: downtown, Laoshan Scenic Area and Huangdao Scenic
proximity to the CBD, schools, hospitals, cultural and sports Area. The highest land price value is 2944.04(million/mu). The
venues, transit stations and the coastline and the land use type etc. price of oceanfront is distributed in zonary pattern. Price in
Chengyang, Gaoxin, Baoshui area is relatively low, the lowest
There are two basic data format: auction prices data and map price is 21.9677(million/mu).
data. Auction data was surveyed in 2010. Map data is based on
present land-use map of Tsingtao (shapefile format), referring to
Tsingtao tourist map, Tsingtao land-use general plan map and
Tsingtao master plan map.
In the map data, the layers of CBD, school, cultural and
sports venues, transit stations, and hospital are extracted from the
whole cadastral map and saved as an independent layer by
ArcGIS software.
The coastline layer is drawn by layer editing function of
ArcGIS according to the geographic position of Tsingtao.
The land use type of land cadastre is classified step by step
basing on “Land use classification standard” category by using
the method of market survey (see TABLE I).

TABLE I. DIVISION CRITERIA OF LAND USE TYPE

Land Use Type Criteria

Bussiness and financial land Figure 2. Land price spatial distribution of Tsingtao by Kriging.
Commercial land
Bussiness serveses land
The spatial distribution of price shows that comparatively
High grade of residence high or low price area has zonality and non-zonality
Residential land characteristic. To investigate the reason of distribution pattern,
Common residence this paper performed spatial analysis to some variables, including
the number of scenic pots and large and medium-sized malls.
Storage land
From the distribution map of the scenic pots number and malls
Mining land number in each district, we can see from figure 3 and figure 4
Industrial land that the number of scenic pots in four districts in downtown,
Public facility land Laoshan district, hangdao district is relatively large. At the same
Transportation land
time, the number of malls in four districts in downtown is
obviously more then others, causing the prices in proximity to
scenic areas and CBD are higher.
3) Researching method
Kringing of spatial gridding methods in ArcGIS geostatistics
module was used to reflect the spatial distribution of land price.
Because of the large number of data samples and stressing the
relationship between land price and its contributing factors, land
price data was divided into groups. Then the mean value of the
proximity to every factor in every group and its corresponding
land price was worked out. At last, the paper analyzed the joint
effects of these spatial factors by using multivariate regression.

B. Spatial Distributions of Land Price in Tsingtao.

Figure 3. The number of scenic pots and CBD in every district.
Importing the cadastral map of Tsingtao to ArcGIS software,
indexing the samples by ID attribute and adding a new field
named price to assign values, we can get the spatial distribution
 Land Price
III. ATTRIBUTING FACTORS ANALYSIS OF LAND PRICE IN Land Price

600.00
TSINGTAO
600.00
550.00
Land price is a comprehensive response to the quality of land
economy. Factors affecting the quality of land economy are many 500.00
500.00

and complex. Because of the difference of studying perspective, 450.00

there are many classification methods of land price attributing 400.00

factors. As the relationship between attributing factors, land and 400.00

affecting range, it can be divided into general factors, regional 350.00

300.00

factors and individual factors. General factors are those affecting

300.00

land price generally, commonly and jointly, including economic, 0.00 200.00 400.00 600.00 800.00 1000.00 1200.00 0.00 1000.00 2000.00 3000.00 4000.00

political, social, demographic and global factors. These factors School CBD

affect the overall level of land price, also are the basic of land Land Price Land Price

price of each block. General factors affect the land price level 800.00

globally, forming regional disparity and international disparity in 1500.00

600.00
general conditions. Regional factors are referred to the natural,
social and economic conditions in the region, including 400.00
1000.00

flourishing degree, traffic condition, environmental quality,

planning limit, and so on. Regional characteristic by combining 200.00
500.00

those factors locally influence the land price level in the region,
forming the price difference in the same region. Individual 0.00

factors are referred to the characteristic and condition of the 0.00 2000.00 4000.00
Venue
6000.00 8000.00 10000.00
0.00

500.00 1000.00 1500.00 2000.00 2500.00 3000.00

block. These are important factors making block price diversity Hospital

in the same homogeneous region. Individual factors include Figure 4. Diagram of the relationship between land price and school, CBD,
square measure, width, depth, shape, slope, basic conditions, venue, hospital respectively.
storefront condition, planning limit, service life of each block and
so on. Individual factors affect land price level microscopically,
making the land price difference in the same region. The above- B. Relationship Between Land Price and Proximity to Bus
listed factors have the different influence in the different region, Station and Coastline.
Land Price
different time and different land type. Besides, those different Land Price

factors influence each other in the same block. 600.00

550.00
550.00
In the view of urban space, the influence of regional factors is
more effective in such many attributing factors. In this case, we 500.00
500.00

need to thorough research the regional factors and hold the inner 450.00
450.00
relationship between location and land price in urban. Following
the principle of combing universality and emphasis, this paper set 400.00
400.00

the regional factors as: location, traffic condition, population 350.00

density, facilities and urban planning with the status of Tsingtao 350.00

300.00
development.
3000.00 4000.00 5000.00 6000.00 0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00
Coastline Bus station

A. Relationship Between Land Price and Proximity to CBD,
School, Hospital, Cultural and Sports Venues.
From the zone theory perspective, different location cause
different use value, different economical income and different
land rent, so the different land price level. Some professors
figured that:” location, location and location”. We can see the
significance of the location to the land price.
To study the regional distribution, this paper grouped the
sample data: there are 4244 lots in the land price data, sorting the
data and grouping them every 400 lots. Calculating the distance
of sample lots to CBD, school, hospital, cultural and sports
venues and the land price average value, drawing the figures
through SPSS software, we can see the result below. (Fig. 4)
Figure 5. Diagram of the relationship between land price and coastline and bus
station respectively.
IV. COMPREHENSIVE ANALYSIS OF LAND PRICE
ATTRIBUTING FACTORS
Besides of the above relative factors, the land type has
attribution to the land price. So this paper assigned values (1,0),
(0,1), (0,0) to three land types: commercial, residential and
industrial. A multivariate regression is used to assess the joint
effects of all above spatial factors. With the forward selection
linear regression method, the result shows that the number of the
group is 11(N), the correlation coefficient of regression equation
(R) is 0.755, residual standard deviation is 0.18, and F value is
1.383.
 According to the variations and coefficients in regression [6] A. Pack and R. Cooley, Location and Residential Property Valuation,
result, we can get the regression equation below: Canterbury: University of Kent, 1993.
[7] P. Wyatt, Property Valuation Using a Geographical Information System,
Land Brighton, University of Brighton, 1994.
price=0.215X1+0.316X2+0.125X3+0.067X4+0.107X5+0.17X6+0.1
56Z1+0.044Z2+0.630. (1)
In (1), x1 referred to the proximity to school, x2 referred to
the proximity to CBD, x3 referred to the proximity to hospital, x4
referred to the proximity to cultural and sports venues, x5 referred
to the proximity to coastline, x6 referred to the proximity to bus
station, if the land type is commercial, z1, z2 assigned (1,0), if
the land type is residential, z1, z2 assigned (0,1), if the land type
is industrial, z1, z2 assigned (0,0).

V. CONCLUSION
Three peaks of land prices are observed in Tsingtao:
downtown, Laoshan Scenic Area and Huangdao Scenic Area.
The price of oceanfront is distributed in zonary pattern. Price in
Chengyang, Gaoxin, and Baoshui area is relatively low. The
spatial distribution in Tsingtao is due to the tour characteristic
and relative factors spatial variation.
The relationship between land value and the proximity to
school, CBD, and bus station is nonlinear. The land price has
the trend of ascent, then increased to maximum and followed
to descend to the distance. The relationship between land value
and the proximity to hospitals and culture and cultural and sports
venues is approximately linear. The land price has the trend of
descend to the distance.
A multivariate regression is built to assess the joint effects of
these spatial factors of Tsingtao land price. The result of the
multiple-factor regression analysis shows that the efficiency of
schools, CBD, hospitals, culture and sport venues, bus station and
coastline to the land value are 21.5%ˈ31.6%ˈ12.5%ˈ6.7%ˈ
10.7%ˈ17%, respectively.

ACKNOWLEDGMENT
The authors would also like to express appreciations to
colleagues in our laboratory for their valuable comments and
other helps.

REFERENCES

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Guide (first published in1903 by Real Estate Record Association), 1903.
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the period 1950-64,” Ed. Hall, P. London, Sweet and Maxwell.
[4] D. Knos, The Distribution of Land Values in Topeka, KansasSpatial
Analysis, Englewood Cliffs, New Jersey: Prentice Hall Ltd., 1962.
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Geo Books, 1980.