The Relationship between the Price of Land and Size of Plot When Plots are Small

Abstract

Most research, using American data, has found that the price of land per unit of area decreases with plot size. This seems counter intuitive. A data set of land sales collected in an almost laboratory-like situation is used to examine the relationship. The evidence shows that the price of land per unit of area increases with plot size. The current study looks at smaller sites which are otherwise identical in their characteristics. Most other studies, however, look at sites which vary in size, in location, and, in particular, the extent to which they are serviced with infrastructure