Land is an essential factor in real estate developments, and each location has its unique characteristics. Land value is a vital cost of real estate developments. Higher land costs mean that project developers must create higher valued products to cover the higher land costs and to maintain a profit level from their developments. Land values vary according to surrounding factors, such as environment, social, and economic situations. Machine learning is a popular data estimation technique that enables a system to learn from sample data; however, there are few studies on its use for estimating land value distribution. Therefore, we aim to apply the technique of machine learning to estimate land value and to investigate the factors affecting the land value in the Talingchan district, Bangkok., we used land value level as the dependent variable, with other factors affecting land value levels as the independent variables. Ten points of interest were chosen from Google Places API. Then, three machine learning algorithms, namely CART, random forest, support vector machine, were applied. For this study, we selected 45,032 land parcels as the experimental data and randomly divided them into two groups. The first 70% of the land parcels was used to create the training area. The other 30% of the land parcels was used to create the testing area to verify the accuracy of the land value estimation from the applied machine learning techniques. The most accurate machine learning results were produced by random forest, which were then used to measure the factor importance. The academic group factor was school, and the commercial group factors were clothing store, pharmacy, convenience store, hawker stall, grocery store, automatic teller machine, supermarket, restaurant, and company.
Land Value Capture as Financial Resource for Infrastructure Development in Palembang City
