The value or so called price of land is determined by different criteria. The size of land has always been regarded as the main criteria in the past. The size refers to the surface area of the plot of land. The parcel can be of 5000 square meters and yet a piece of land of 2000 square meters can cost more. This can be in both absolute and real terms, it seems obscured yet true. The price of a parcel of land is determined by more than just its physical size. There are factors such as population, environment, infrastructure, society, convenience and reputation which are integrated in its valuation.

How?

Reputation

The image of a particular community plays a critical role. There are areas where the death rate is high, corruption is present and the level of criminality is terrifying. The obvious outcomes of a negative reputation are that people will dislike the area. The willingness to purchase a plot of land in the area will be low. The immediate impact on land seller will be that if they are willing to move away from the neighborhood, they will have to sell their land at below market price to attract buyers. In areas where the rate of criminality is high, the price of land tends to be less valued.

Classes of People

The people of our nation are mainly divided into 3 categories: the dependent (children), independent (labor force) and also the retired people. They do all have different motives and try to seek for different environments to live. The labor force wants convenience in terms of nearness to occupation, where as pensioners want convenience in terms of health and care service. They tend to opt for calm areas. These two arenas often co-exist and will be found in urban areas. The price is high in urban locations. The two reasons contributing to the luxurious price setting are the high demand by pensioners and the working class, and secondly the limited space. This will force price to exacerbate.

Population

The population growth is another contributing factor for high prices. Population growth is the increasing number of people based on birth and death rate and migration rates. If the rate is positive for at least 60 years then this will imply that more land will be demanded in the future. If this is not the case, then it purports that the people are becoming poorer. This is hindering them from affording a parcel of land.

Infrastructure

The infrastructure in the surrounding does influence the price of land. Once a modern building is erected in a community the value of nearby land appreciates. The contrary would be the case if a factory with high level of population would be set up. The price would thus depreciate. The appearance of the environment influences price and willingness to pay.

The size of the land is just a single determinant of price. The price of land is influenced positively and negatively depending on socio-economic and ecologic factors. Time is what establishes the magnitude and weight of each determinant.