I cannot do all the good that the world needs, but the world needs all the good that I can do. Jana
Idea Transcript
URBAN LAND ECONOMICS THIRD EDITION
'
I1,
a
11 r
Paul N. Balchin and
Jeffrey L. Kieve
ls1ituto Universilorlo Archffettura Venezia
EU 83 Servizio Blbliografico Audiovisivo e di Documentazione
l
URBAN LAND ECONOMICS Third Edition
PAUL N. BALCHIN Ph.D., B.Sc.(Econ.) Principal Lecturer in Economics Thames Polytechnic
and
JEFFREY L. KIEVE M.Phil., B.Sc.(Econ.), A.l.A.S. Property Investment Consultant and Visiting Lecturer, Thames Polytechnic
BIBUOTECA DAEST INVEHJARIO 11·
{Q.J.a_
M
MACMILLAN
Contents Preface to the Third Edition List of Figures List of Tables
xi xiii xv
Introduction Urbanisation. The resources of land. Urban land economics. 2
The Market and the Location of Urban Land Uses The inefficiency of the market. Accessibility and demand. The urban land use pattern. The central business district. The zone of transition. The suburban area. The rural-urban fringe. Urban location theory. Costs. Revenue. Profitability. Retailing location. Office location. Industrial location. Residential location.
10
3
Spatial Structure and Urban Growth Urban rent - land values - density. Theories of urban structure. Concentric zone theory. Sector theory. Concentric zone-sector theory. Multiple-nuclei theory. The development of individual urban sites. Theories of urban growth. Central place theory. Urban base theory. Money flow theory. Input-output analysis. Location theory. Size and urban growth.
38
4
The Property and Investment Markets Property interests. The property market and price determination. Institutions and the property market. Government and the property market. Property as an investment. Differences between property and nonproperty investment. Macro-economic factors; the property market collapse, 1974, and its aftermath.
68
viii
Contents
5
Economics of Development The nature and types of development. Site selection. Financial calculations for private development and the price of land: Sources of finance for development. Short-and Medium-term finance. Long-term finance. Property development and investment overseas. The development cycle. Local authority sources of finance. Local authority current financing. Rates. Alternative sources oflocal revenue. Monetarism and rate control.
87
6
Land Values, Proprietary Interests and Town Planning Town Planning and property values. Market-determined values and social needs. The price mechanism and the inequalities of wealth. The polemics of government intervention in the property market. Planning and the loss and recovery of private property rights. Government policy since 1973.
116
7
Investment Appraisal Conventional methods of investment appraisal. Discounting and the time value of money. Net present value. Internal rate of return analysis. Uncertainty and probability theory. Sensitivity cost-benefit analysis. Definition of the project. Valuation of costs and benefits. The discount rate. Relevant constraints. Conclusions.
139
8
Urban Decay and Renewal Economics and the traffic congestion problem. Road use and development. Direct costs. Indirect costs. Disequilibrium of demand and supply. Road pricing theory. Methods of road pricing. Some economic consequences of direct road pricing. Investment. Car parking. Public transport. The inner urban areas. Renewal strategies. Public intervention. The private enterprise approach. Economics and pollution. Pollution taxes. Prevention at source. Local and regional policies.
156
Contents 9
Housing
ix 188
Housing Market. Tenure and prices. Population trends. Finance for house purchase. Building society funds. The building societies and government. Incomes and income elasticity. Tax concessions and option mortgages. Second homes. Private rented accommodation. Local authority housing. Housing associations. Slum clearance, rehabilitation and renewal. Rehabilitation. The supply of houses. The housebuilding industry in Great Britain. House prices and land costs. Material, labour and finance costs. Conclusions. 10 The Construction Industry in the United Kingdom The nature and characteristics of the industry. Repairs and maintenance. Site work. The nature and determination of demand. Tendering. Negotiated contracts. The construction industry and the economy. Effects of government policy. The structure of the industry and its economic organisation. Number and size of firms. Small firms. Large firms. Subcontracting. Material manufacturers. Builders' merchants. Labour. Labour-only subcontracting. Technical developments in the construction industry. System building. Local authority housing and industrial building costs. Metrication and dimensional co-ordination; Computer applications. Construction overseas. Conclusions.
236
References
275
Recommended Reading
282
Index
284
lnthe ~-·••t!Qfji inanh111d~~--~--~i)flilftJl•r11W· knowtedQtOtaxpartfaeis baeomlngfftONconcemedWilh tf!CJ·~ltion environment Thftook aims tomeefth8irneeds. Paul 88lchln.andJeffrey Kleve introduce theirtext by distinguishing the main types of land, setll!'lg them In the context Of the location of urban lqnd-uses, spatial structures and urbanQIWth. The authors show the interrelationship of the property and investmentmatkets, how the process of development works and how the govemment can intatYlne. particularly by means of the planning process and land taxation. The core ofthe book Is its review of appraisal methods for private and public development schemes, subsequently applied to the economics.of urban transportetk>n, to the inner cities, to the environment and to housing problems. A conclUsion examines the economic problems of the construction industry.
This is a basic textbook primarily for students taking degree courses in Estate Managementll.and Economy and Quantity Surveying, and Part II and Final examinations of the RICS. It wiU also be useful for Architecture, Building and Town Planning students, and should prove valuable for courses in Economics and ~
Pllul N. lllehln is Principal Lecturer in Economics at Thames Polytechnic. He is authorof Houllng Improvement and Social Inequality (1979), Housing Policy and Housing Needs (1981) and Housing "Policy: an introduction (1984). Jeffrey L Kleve, after some twenty years as a lecturer in land and development economics, was appointed as Managing Director of an Essex-based property management company where he has been able to link his academic and practical knowledga.1n bis last academic job he was Senior Lecturer in Land Economics at ThamesPolytec:hnic. He is author of The Bectrlc Telegraph: an economic and
social hi8tofy. MACMILLAN BUILDING AND SURVEYING SERIES Advanced Bulldlng Mea8urement tvor 11. S8eley BI.ii/ding EconomlCS lvor H. Seeley Building Maintenance lvor H Seeley Building Quantities Explained lvor H. Seeley Building Technology lvor H. Seeley Building Surveys, Reports and Dilapidations lvor H. Seeley Environmental Science in Building R. McMullan Introduction to Valuation David Richmond National and Local Taxation Michael Rayner Principles of Property Investment and Pricing W.D. Fraser Quantity Surveytng Practice lvor H. Seeley Structural Detaillhg P. Newton The British Construction Industry: an introduction Denis F. Dolan Urban Land Economics Paul N. Balchin and Jeffrey L. Kieve Forthcoming Asset Valuation Michael Rayner Public Kbrlcs Engineering lvor H. Seeley ISBN