MODULE 4: LAND USE DETERMINANTS AND heavily influence physical & biological

THEIR DEVELOPMENT IMPLICATIONS processes

Reference 1: Physical, Economic, Public

4. Soil Types (Land Capability Classes)
Interest, and Social Determinants of Land Use
Refers to the individual physical
Physical Determinants
characteristics of the land.
1. Topography
9 Types According to BSWM:
Topography affects the cost of the
 A
following:
 B
 Production  C
 Land development  D
 Laying networks &  L
infrastructure  M
 Conveyance of water, drainage,  N
& sewerage  X
 Rate of erosion  Y

Major Topographic Features:

 Slope
 Relief
 Position
 Size and shape
 Land cover
2. Geology
Looking into the materials of which the
Earth is made, the structure of those
materials, and the processes acting
upon them is imperative in identifying
appropriate land use and determining
the intensity of such use.
Geologic Elements Used in Planning:
 Geomorphology
 Soils
 Hydrogeology
3. Climate
Covers factors such as temperature,
sunlight, precipitation, humidity, wind
velocity & atmospheric pressure, which
5. Wind Direction
6. Environmentally Critical Areas
Areas which have been identified to be
environmentally sensitive, as identified
in Section B on Environmentally Critical
Areas of Presidential Proclamation 2146
(Dec. 14,1981).
Economic Determinants
Three Approaches of Land Valuation
1. Market Approach to Value
 Analyses the typical buyers and
sellers in the market
 Compares the prices of
properties (similar in terms of
type, location, owner benefits)
sold under the same market
conditions
 Reliability of the approach
depends on the thoroughness
in which the appraiser analyzes
and defines the market.
2. Cost Approach to Value
  Basing on the theory where
property cannot be valued
beyond its cost of replacement.
 This stems from the assumption
that no buyer would pay more
for a used property than for a
new, equally acceptable
substitute property.
 The approach to value rests on
the rational behavior of a
“typical” buyer in the market.
 Also based on the assumption
that a close relationship exists
between production costs and
values
3. Income Approach to Value
 Value of the property is based
Costs of Land Development
on the analysis of its future
earning power.
Benefits of Land Use
1. Money Value
 This refers to the most common
expression of the benefits of
land utilization (or what the
product of such utilization shall
fetch in the market.
 This is especially true for land
uses where land is considered a
direct input in the production
process (e.g. value of
agricultural crop harvested for a
particular season)
2. Accruing Account of its Location
 Refers to the benefits of using
land as a site for urban uses (i.e.
its relative accessibility to other
economic activities).
 A commercial establishment
located closer to its intended
customers will have a greater
volume of business than those
located far from urban areas.
3. General Increase in Land Value as a
Result of its Use
 A parcel of land that is put to
some kind of use, or being
improved, will have a higher
value as opposed to a parcel
which is left in its natural state.
4. Estimated Value of Mineral Deposits
 Another benefit of land use that
can be expressed in money
terms (in this case, within a
prospective mining and quarry
site).
1. Direct Outlays for Land Development
 direct outlays of capital and
labor being applied in the
various types of land
development
 The extent and nature of such
outlays vary with the type of
development (e.g., Capital
outlay required for commercial
exploitation of forests may take
the form of the building of
simple logging trails)
 Land development cost may
sometimes be considered “sunk
cost”, as investment in land
development can never be
withdrawn.
2. Recurrent Costs of Land Development
 This may include operating and
maintenance costs,
depreciation allowances for
improvements, and interest
payments on borrowed capital
and local property taxes.
 3. Social Costs of Land Development
 These cover the social returns
and satisfactions given up in the
process of the land’s
development (e.g.,
inconvenience suffered by the
settlers in the really stages of
resettlement)
4. Ripening Cost
 This refers to the increase in the
cost of holding property in its
present state (often in lower
uses than those justified by
current market conditions)
when it is ripe (real or
imagined) for higher use.
Characteristics Affecting the Value of Property
in the Real Estate Market
1. Utility - Defined as the capacity to
satisfy human needs
2. Scarcity - Where demand is greater
than supply
3. Effective Demand - Refers to the
need/desire to own or possess, backed
by financial means to satisfy that need
4. Transferability - Pertains to the relative
ease of the transfer of rights of
ownership from one person to another
Factors Affecting Demand and Supply of
Property
1. Increase/Decrease in Population
 Increase/decrease in the
population results in the
increase/decrease for the
demand of land.
 These population changes may
be considered on a national
basis or on a more local basis
 movements of population from
one area to another affects
property value of both the
areas of origin and the
destination area
2. Changes in Age Distribution of the
Population
 This may manifest in the
housing preferences of a
particular age group (e.g., older
people preferring bungalows,
geriatric facilities, while the
younger generation go for flats,
walk-up apartments)
 Housing demands may have to
adapt to cater to the preference
of a particular age
group/generation
3. Changes in proportion of married
couples to single people
 This may also be reflected in
the demand for particular
housing types, and hence the
value of property.
 Different types of
accommodations may be
required and will reflect in the
values of properties.
4. Changes in Fashion and Taste
 Fashionable areas of a city may
become unfashionable, and vice
versa. Fashionable areas where
the upper class live are often
where property values are high.
5. Changes in the Type of Society
 These may be cities currently
undergoing transformation
from agrarian to industrial (e.g.,
People often leave the rural
areas to work in urban areas)
  Immigration into the cities for
better economic opportunities
may often result in increased
demand for property and
consequent changes in property
values in the destination areas.
6. Changes in Technology
 New machines are designed to
carry out work more efficiently
but may also require greater
headroom. Older workshops
thus become obsolete and have
less value.
7. Changes in Building Methods
 Should new building
technologies result in increased
supply of new buildings, unless
there is an increase in
demand/increase in money
supply, prices, or values of that
type of property resulting from
the technology and building
methods may fall.
8. Changes in Money Supply
 If money is made available to
purchase homes, it may bring
about competition among
purchasers, resulting in bidding
up of prices
 House improvements & home
purchase is also one priority
investment of most overseas
worker’s families
9. Changes in Means of Communication
 Accessibility & availability of
infrastructure have great
influence over the value of
property
 This factor becomes the basis of
the special benefit levy
 Arguments also arise as to
whether societies that have
implemented infrastructure
improvements should benefit
from increases in property
values
10. Planning Controls
 The designated use of land as
indicated in the CLUP & Zoning
Ordinance may result in
increase/decrease in value of
some properties.
 Example of the reclassification
of agricultural lands to non-
agricultural use by an LGU
increases the value of the land
fifty-fold
Public Interest Determinants of Land Use
Livability - refers to those qualities in the
physical environment of the urban area which
tend to induce in citizens a feeling of mental,
physical, and social well-being according to the
extent to which their fundamental day-to-day
needs and wants are satisfied.
1. Health and Safety
Emphasis is placed on constraints to
prevent conditions injurious to the
physical well being of the people of the
community:
 Protection against accident
hazards
 Protection against contagion
and provisions for maintenance
of cleanliness
 Protection against excessive
noise
 Protection against atmospheric
pollution
 Provision of opportunities for
normal family and community
 life, and protection against  a land use scheme in which
moral hazards residential areas have easy
 Provision of possibilities of access to schools and recreation
reasonable aesthetic areas also permits a more
satisfaction efficient and economical school
plant or recreation program in
Other forms of control exercised in the
terms of persons served and
public interest:
per capita costs.
 Control of daytime and  it is important to give
nighttime population densities preference to areas where
 Control over use and residential development can be
development of hazardous located in relation to existing
areas utility or school capacities or to
 Control of exposure to areas where these facilities can
accidents, noise, and be economically and efficiently
atmospheric pollution extended.

Social Determinants of Land Use

2. Convenience
 Deals with the locational 1. Dietary Habits
arrangements of land use and  Filipino customary preference
the relationship that each for eating rice; as a result, a
functional use area bears to large portion of the country’s
every other one agricultural lands is devoted to
 Can be judged in terms of rice production.
home-to-work, work-to-
recreation, home-to-shopping, 2. Strong family ties and its
work-to-shopping, and a variety extension/extended families
of other area relationships  Manifested plenty in the rural
intrinsic to the urban land use areas, where large agricultural
pattern. estates are continuously
divided and redistributed to
3. Amenity surviving heirs
 refers to the pleasantness of  Some family estates remain
the urban environment as a intact and are managed as a
place in which to live, work, and single estate
spend one's leisure time
 It relates to the perceptual 3. Hiya
aspects of urban surroundings--  The practice of transferring
their aesthetic appearances to lands to heirs only after the
the eye and the comfort and landowner has passed on
enjoyment offered to the other (reluctance of landowners to
senses. pass on their lands to heirs
while the former are still living)
4. Economy can cause problems in
 determining ownership, as
these can be left unresolved for
a long time.

4. Patterns of Land Ownership

 The size of land and the social
status of the landowner usually
affect what type of land to
which an area is devoted.
 Larger landholdings are
generally devoted to more
productive uses and the
activities/operations are more
organized.