4.6.4 Land Price Determination

4.6.4 Land Price Determination

The Price Relation Matrix provides the final computational basis for land price determination.

Unlike conventional valuation models that estimate individual parcel prices independently, the ULVF framework determines land prices by preserving the relational structure represented within the PRM. Once an appropriate reference price is established for one or more benchmark locations, the remaining land prices can be determined while maintaining the spatial consistency encoded in the Price Relation Matrix.

Conceptually, the land price determination process follows the sequence

Urban Land Value Field

          │

          ▼

Value Relation Matrix (VRM)

          │

          ▼

Price Relation Matrix (PRM)

          │

          ▼

Reference Land Price

          │

          ▼

Land Price Determination

Within this framework, the PRM functions as the mathematical bridge between the theoretical representation of urban value and the practical determination of land prices. Rather than replacing market information, it organizes market prices into a coherent spatial system governed by the same mechanisms that generate the Urban Land Value Field.

Accordingly, the complete methodological framework of ULVF can be summarized as

Dual-Scale Variable Structure (DSVS)

                │

                ▼

Seven-Variable Structural Model (SVSM)

                │

                ▼

Value Correlation Matrix (VCM)

                │

                ▼

Urban Land Value Field

                │

                ▼

Value Relation Matrix (VRM)

                │

                ▼

Price Relation Matrix (PRM)

                │

                ▼

Land Price Determination

The introduction of the Price Relation Matrix completes the theoretical architecture of the ULVF framework by establishing a mathematically consistent pathway from spatial value formation to practical land price determination. Through the sequential integration of the VCM, VRM, and PRM, the ULVF framework provides a unified methodology that links urban spatial mechanisms, value relationships, and land-price estimation within a single coherent analytical system.