Modeling of Land Prices in Karang Joang, Balikpapan City

Abstract

Spatial Plan of Balikpapan City in 2012-2032 decides Karang Joang Village as a strategic area of economic interest. As a consequence, the development of regional infrastructure was built to support the emergence of new centers of activity, such as State Universities, highways and regional industrial area. Therefore, the price of land in Karang Joang has doubled over the past two years. High land prices tend to be used for commercial activities. On the other hand, zoning activities are needed to ensure the harmony of space and control the growth of land outside of its designation. Land use that is not in accordance with the plan as a result of high land prices can cause many land conflicts such as land speculation, inappropriate land use, and other problems. A land pricing model is needed as a fundamental for zoning of spatial utilization activities to minimize land conflicts. The land price model can also be used by the government to make policies or space planning in accordance with the development of land prices. The Euclidean distance method from GIS was used to identify land characteristics against factors affecting land pricing and regression analysis to construct land prices models. We found that there were nine factors that influence land prices, namely the distance of land to government centers, markets, universities, hospitals, arterial roads, collector roads, industrial areas, availability of electricity services and land use. Among these factors, the availability of electricity services contributed the largest increase of 252,234 IDR and the land that close to the industrial estate tended to decrease by 648 IDR/m2.