Utilizing Semi-Variograms and Geostatistical Approach for Land Value Model in Urban Region

The availability of land in Bandung City become a challenge for urban development. Bandung has long been an urbanization destination for Indonesians besides Jakarta, Surabaya, Medan, and Makassar. Currently there was still limited research that explores land values and spatial planning for urban areas. This study aims to develop spatial modeling for land values using a semi-variogram and geostatistical approach in urban areas. Our research was conducted in Bandung City, West Java (Indonesia). Data was selected based on purposive sampling involving 50 land price and 95 building price samples throughout the city. The collected data were then analyzed using 4 semi-variogram models and Ordinary Kriging to derive the spatial distribution of land values. Land value referred to spatial modeling from the geographic information system. The results of the analysis indicated that the semi-variogram stable type was the most suitable model, exhibiting the minimum error by root mean square, mean standardized, root mean square standardized, and average standard error. According to our model, the areas with the highest land values are located close to the city square “Alun-alun”, which is closely associated with government offices, trading areas, defense and security facilities, service areas, education, cultural tourism, and high-density housing. These areas are well known since the Dutch East Indies era. Interestingly, despite the growth pole in Gedebage, the western part of Bandung has higher land values compared to the eastern part. This could be attributed to historical and actual aspects which have had a greater impact on land values than regional plans implemented by the government. Land values management is necessary to guarantee living space as well as to achieve a sustainable city.