An Analysis of the Effects of Development-Restricted Areas on Land Price Using Spatial Analysis

Abstract

The purpose of this study was to estimate the effects of development-restricted areas (DRAs) on land price. The study area used was Goyang city in South Korea, where DRAs occupy a large proportion of the city’s administrative area. To examine the economic impact of the DRA, this study estimated log-linear regression models and calculated the difference between the land price determined within the DRA and the land price of the developed areas within buffers created by using a geographic information system (GIS). The results showed that a designation of DRA decreased land price, and that there was a large difference in the land price between the inner and the outer DRA, with a difference of USD 871/m2 in the average land price of the study area. These results serve as a reference for policymakers regarding land use in metropolitan areas in the future.