A NOMINAL ASSET VALUE-BASED APPROACH FOR LAND READJUSTMENT AND ITS IMPLEMENTATION USING GEOGRAPHICAL INFORMATION SYSTEMS

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1 A NOMINAL ASSET VALUE-BASED APPROACH FOR LAND READJUSTMENT AND ITS IMPLEMENTATION USING GEOGRAPHICAL INFORMATION SYSTEMS by Tahsin YOMRALIOGLU B.Sc., M.Sc. A thesis submitted for the Degree of Doctor of Philosophy Department of Surveying University of Newcastle upon Tyne June, 1993

2 ABSTRACT Land readjustment is a planning tool to assist in systematic urbanisation. The process aims to take rural or unplanned urban land, usually irregularly subdivided, and re-allocate it, in the required balance, for public and private use according to town planning requirements. It has great advantages in solving the land-use problem in urban areas but current land readjustment implementations are limited in many ways: for example, there are technical limitations in handling the wealth of data, economical limitations in compensation for acquire land, and social limitations in minimising the inconvenience and conceived injustices. To maximise the benefits from land readjustment and to establish an ongoing land information system, a nominal asset value-based land readjustment model called LARES has been developed and implemented using ARC/ INFO GIS. This model specifically deals with the land valuation, decision-making, and information management issues of the current land readjustment applications. While the objective of land valuation is to determine market value, in this approach, a nominal asset value is used to represent a land parcel's worth when compared to others. Many land valuation factors defining the economical, environment and spatial value of land parcels are analysed before and after the land readjustment project to ensure equality in land redistribution. Various equations and algorithms for land valuation and distribution analysis are investigated and implemented. The model has been tested with a case study. Data for land valuation analysis are derived from property, land-use, thematic, and topographical maps, and from other related textual records. Using GIS functionality, spatial analysis is performed in order to determine land parcel asset values by the combination of mathematical analysis and subjective judgement. The thesis describes the design, development and implementation of a nominal asset value-based approach to land readjustment for urban land development. It concludes that this approach improves the qualitative and quantitative ability of land readjustment process. i

3 ACKNOWLEDGEMENTS I would like to thank to my supervisor, Dr. David Parker, for his advice and encouragement throughout the duration of this research. Many thanks to all my other colleagues and friends in the Department of Surveying too numerous to mention, particularly members of the MIS group. I also thank to Mufutau O Hazeez-Agbaje, Adam Dodson and Crispin Hoult for proof reading the early drafts of the thesis. This thesis could not have been completed without the sponsorship of the Turkish Government, my employer Karadeniz Technical University and the facilities provided by the Department of Surveying all of which are appreciated. Finally my deep gratitude goes to my family, especially, my parents Kadem and Rabia, to whom I dedicate this thesis, for their support, understanding and patience throughout my years of study in abroad. ii

4 TABLE OF CONTENTS ABSTRACT ACKNOWLEDGEMENTS... TABLE OF CONTENTS... LIST OF FIGURES... LIST OF TABLES... i ii iii x xiii CHAPTER 1 : INTRODUCTION 1.1 Introduction Problem definition Research objectives Methodology Thesis outline CHAPTER 2 : LAND READJUSTMENT 2.1 Introduction Urban development Land use control mechanism Zoning Subdivision Building regulations Approval by government agencies Urban planning Land management methods Historical overview of land readjustment Definition of land readjustment Objectives of land readjustment Procedures in land readjustment Decision of the authorities Land survey of project area Calculation Land redistribution iii

5 2.8.5 Final registration Characteristics of land readjustment Advantages of land readjustment Shortcomings of land readjustment Requirements for land readjustment Selected land readjustment applications Australia Taiwan Japan Germany Turkey Chapter summary CHAPTER 3 : A NEW APPROACH TO LAND READJUSTMENT 3.1 Introduction Requirements to improve land readjustment process Land valuation Decision making Information management Development of a value-based land readjustment model The aim Land valuation analysis Classification of land valuation factors Use of the land parcel Characteristics of neighbourhood Location of the property Site Factor selection Determination of a land parcel value Formulation of the land valuation factors Calculation of the value parameters Determination of the weights The process of decision making Land subdivision Land distribution The procedure of information management Data input iv

6 Data analysis Data output Chapter summary CHAPTER 4 : AN OVERVIEW OF LAND-RELATED INFORMATION SYSTEMS 4.1 Introduction Classification of information systems Geographical information systems Definition of GIS Characteristics of GIS The functional elements of GIS Data acquisition Data management Data retrieval Data manipulation and analysis Data display Spatial data models in GIS Vector spatial data Raster spatial data Raster versus vector Database models Hierarchical data model Network data model Relational data model GIS applications Land information systems Definition of LIS Management objectives of LIS Parcel-based LIS: The Cadastre Components of the cadastre Classification of parcel-based LIS Legal cadastre Fiscal cadastre Multipurpose cadastre Role of the cadastre Merits of the cadastre Impediments of the cadastre v

7 4.5 Chapter summary CHAPTER 5 : SOFTWARE DEVELOPMENT : The development of LARES (LAnd REadjustment System) 5.1 Introduction Integration of land readjustment with GIS Choice of a GIS tool Software organisation Data processing Customisation Storage of data Data check and correction The sequence of polygon segments The modular design of LARES Land subdivision: The creation of new lots Land valuation factor analysis Calculation of parcel values Parcel distribution Outputs Modification of LARES Valuation factors Factor weights Menu changes Chapter summary CHAPTER 6 : DESCRIPTION OF LARES 6.1 Introduction Design criteria Hardware Software Digitising Organising attribute data User interface File organisation in LARES Directory structure vi

8 6.3.2 Data file management AML files Menu files Execution files The components of LARES Arc modules Subdivision Valuation Distribution Query Attribute query Coverage information Query of two-dimensional information Displaying three-dimensional views Chapter summary CHAPTER 7 : A Case Study: IMPLEMENTATION AND TESTING OF LARES 7.1 Introduction Implementation concerns An overview of Turkish land registration system General The cadastral system in Turkey Land acquisition methods and issues Land compensation Voluntary Method Land readjustment Land readjustment system The study area Data gathering Digitising of required map layers Data transfer from AutoCAD to ARC/INFO Topology creation The correction of topology errors Input of descriptive data Formulation of land parcel IDs Exporting of input coverages Data Processing vii

9 7.6.1 Creation of new site lots Land valuation analysis Determination of parcel values Distribution of new land parcels Final reports Assessment of the implementation The selection and implementation of different factors Statistical analysis of the case study results Correlation between the factor values Test of significance on asset value Testing the validity of the developed model Chapter summary CHAPTER 8 : CONCLUSIONS 8.1 Introduction Research summary General discussion Results and conclusions Suggestions for further investigations Concluding remarks REFERENCES APPENDIX A : CALCULATION PROCESS IN LAND READJUSTMENT APPENDIX B : A SURVEY: DETERMINATION OF LAND VALUATION FACTOR WEIGHTS APPENDIX C : CREATION OF FEATURE ATTRIBUTE TABLES APPENDIX D : FILE STRUCTURE IN LARES APPENDIX E : DATA LOADING TO ARC/INFO TIN APPENDIX F : viii

10 THE IMPLEMENTATION RESULTS APPENDIX G : AN OVERVIEW OF ARC/INFO APPENDIX H : STATISTICAL TESTS ix

11 LIST OF FIGURES Figure 2.1 Mechanism of land readjustment Figure 2.2 Calculation steps in land readjustment process Figure 2.3 The equations in land readjustment Figure 3.1 Land valuation profiles for landowners before and after project Figure 3.2 The conceptual view of land valuation factor assessment Figure 3.3 The examples for the different land parcel shapes Figure 3.4 The relationship of factor value and a parcel location within a site block Figure 3.5 An environment assessment of land parcel Figure 3.6 The view analysis for a land parcel Figure 3.7 A land parcel access to street Figure 3.8 Noise and nuisance analysis Figure 3. 9 Determination of proximity factors Figure 3.10 A sample of cadastral map Figure 3.11 A sample of zoning map Figure 3.12 The distribution of the reponded questionnaire forms Figure 3.13 The graphs of mean values Figure 3.14 Two cases which occurs during the land distribution Figure 4.1 A simplified information system overview Figure 4.2 Land-related information Figure 4.3 A simplified geographical information system Figure 4.4 The functions of a GIS Figure 4.5 Geographic elements (points, lines, and polygons) used for defining topological data structures Figure 4.6 Vector and Raster data models Figure 4.7 Database models Figure 4.8 A simplified land information system Figure 4.9 The land Parcel Figure 4.10 Primary components of a cadastre and examples of potential linkages to other land-related information Figure 4.11 Positive effects for individuals Figure 5.1 An overview of LARES Figure 5.2 The main tasks which undertaken during the software development x

12 Figure 5.3 Graphic and tabular integration Figure 5.4 Reconstruction of topology Figure 5.5 A polygon digitised with three arcs Figure 5.6 Node re-arrangement Figure 5.7 The flowchart of land subdivision algorithm Figure 5.8 Parcel creation Figure 5.9 Topographic factor value analysis Figure 5.10 Environmental factor value analysis Figure 5.11 The flowchart of parcel's shape calculation Figure 5.12 Analysis of the street frontage factor value Figure 5.13 The street networks for old and new land parcels Figure 5.14 Inter-visibility and blocking object Figure 5.15 An example for land distribution Figure 5.16 The linkage of valuation factor, AML and FORTRAN files Figure 5.17 The view of land valuation menus Figure 6.1 The view of hardware used for this study Figure 6.2 The digitised spatial data layers Figure 6.3 A view of standard feature attribute tables Figure 6.4 A view of LARES interface Figure 6.5 The directory structure of LARES Figure 6.6 The menu titles of LARES Figure 6.7 The view of ARC-MODULE menu Figure 6.8 The view and functions of SUBDIVISION menu Figure 6.9 The view of VALUATION menu Figure 6.10 The view of DISTRIBUTION menu Figure 6.11 A list of cadastral parcels with selected value attributes Figure 6.12 A view of layer combination Figure 6.13 A view of cadastral parcel and its attached information Figure 6.14 A cadastral parcel with its new site lots after land distribution Figure 6.15 A new site lot with its related cadastral parcels after land distribution Figure 6.16 Share distribution of new site lots after land reallocation Figure 6.17 A view of new land parcel values between 50,000 and 60,000 units Figure 6.18 A three-dimensional view of land valuation relief with cadastral parcels before project Figure 6.19 A three-dimensional view of land valuation relief with xi

13 site lots after project Figure 6.20 A three-dimensional view of available utilitiy land valuation factor relief with cadastral parcels Figure 6.21 A three-dimensional view of permitted number of floor land valuation factor relief with site lots Figure 7.1 Land readjustment applications in Turkey Figure 7.2 City of Trabzon Figure 7.3 A land parcel identification Figure 7.4 Cadastral coverage Figure 7.5 Zoning coverage Figure 7.6 Subdivision coverage Figure 7.7 Land distribution for a site block Figure 7.8 Nominal asset value profiles before land readjustment Figure 7.9 Nominal asset value profiles after land readjustment Figure 7.10 Land parcel size profiles after the distribution xii

14 LIST OF TABLES Table 2.1 The categorisation of land management methods Table 2.2 Steps in urban land readjustment process Table 2.3 The benefits of land readjustment for the government and landowners Table 3.1 Factors that may effect a land parcel value Table 3.2 The quuestionnaire form Table 3.3 The basic statistical results of the survey data Table 3.4 Table 3.5 Table 4.1 Land valuation factors and their weights The initial textual and non-textual information for land readjustment Examples types of GIS classified according to the application area Table 4.2 Comparison of vector and raster data methods Table 7.1 Advantages and disadvantages of land compensation Table 7.2 Advantages and disadvantages of voluntary method Table 7.3 The results of land distribution with three different factor groups Table 7.4 The calculated parcel unit values with three factor groups Table 7.5 Land parcel sizes which landowners can obtain after after the project Table 7.6 The correlation matrix of the factor values before the project 231 Table 7.7 One-way test for the selected factors (before) Table 7.8 Homogeneous subsets (before) Table 7.9 One-way test for the selected factors (after) Table 7.10 Homogeneous subsets (after) Table 7.11 Testing the model (rank of 15 factors at 0.05 level) xiii

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An Approach to Support Low Income Families Housing Needs in Developing Countries

An Approach to Support Low Income Families Housing Needs in Developing Countries Tahsin YOMRALIOGLU and Recep NISANCI, Turkey Key words: Housing Policy, Land Readjustment, Nominal Asset Valuation. SUMMARY