Land price is also called "land price". Refers to the price when land is bought and sold. Land is a natural thing, not a product of labor, and has no value in itself, so there is no price determined by value. However, when land is bought and sold as a commodity in the market, it has a price. Under the condition of private ownership of land, land owners can collect land rent by virtue of their ownership of land, and they can also earn income by selling land to form land prices. Marx pointed out: "the purchase price of land is calculated by several times the annual income, which is just another form of capitalization of land rent."
How to evaluate land price? How to price the land? This question seems redundant. It's not worth any money in the market.
Actually, it is not. First of all, land, as a physical asset, has low transaction frequency and is far less liquid than financial assets. Secondly, the transaction cost of land is very high, which often requires investigation and evaluation in the early stage, bidding and financing in the middle stage, and delivery and tax payment after the transaction, resulting in its actual cost being less open and transparent. These two reasons often lead to no ready-made second-hand trading market to directly find the most representative land price.
In addition, the homogeneity of land is not as good as other physical assets, such as precious metals such as gold and silver, or industrial raw materials such as crude oil, coal mines and copper. Because of the different planning purposes or school districts, the prices of two adjacent plots may be quite different, so it is difficult to conduct commodity futures trading with land as the subject matter.
However, the scientific pricing of land is not without trace, which can be roughly divided into three categories: marginal agricultural value pricing method, real option pricing method and time-space model pricing method.