Factors Affecting the Value of Land on the Street of Williem
Iskandar Pasar V Medan Estate Sei Tuan District, Deli Serdang
Regency
F. I. Nasution1
1
, D. N. Aulia
2
and H. T. Fachrudin
2
1
Master of Property Management and Valuation Program, Universitas Sumatera Utara, Jl. dr. Mansur Campus USU,
Medan
2
Faculty of Engineering,UniversitasSumatera Utara, Jl. Almamater KampusUSU, Medan 20155
Keywords: Land Use Type, Accessibility, Topography, Location, Distance, Land Value.
Abstract: The increasing growth of urban population encourages the growth of commercial areas in one area.
Differences in the value of land in a particular area cause the community to need information on the value of
land in a transparent and the factors that affect the difference in the value of land in one area. This study
aims to identify factors that affect the value of land on the road Willem Iskandar Pasar V Medan Estate Sei
Tuan Deli Serdang District. The analytical tool used in this study is multiple linear regression. The
dependent variable is the land value referring to the field survey results with some adjustments, whereas the
independent variables are land use type, accessibility, topography, location and distance to CBD. The results
of this study indicate that the type of land use and accessibility does not affect the value of the land. This is
evidenced by the significance value of these variables is not smaller than alpha (0.05). Topographical
variables and distance to the CBD have a significance value smaller than the alpha of 0.039 and 0.044.
While the location becomes the most influential variable to the land value that has the smallest significance
value among some other variables of alpha is equal to 0.038. So from the results of the study concluded the
location of a commercial function becomes the most important influence on the value of land on the street of
Williem Iskandar Pasar V Medan Estate.
1 INTRODUCTION
The value of land has a definition or understanding
of various - depending on context and its purpose
and point of view. The value of land by definition is
defined as the strength of the value of the land to be
exchanged with other goods. The value of land is
influenced by the type of land use, where the activity
or buildings located in the area or around the area
can determine the carrying capacity of the land value
in the area (Rusdi, 2013).
The development of the area can not be separated
from accessibility, such as the availability of public
transportation, the reach of the area to the city
center, the existence of roads that are suitable to use
and so on. According to (Eldred, 2002) Accessibility
factor is a factor that refers to the ease of reaching a
place desired by the property owner, of the property
they have.
In addition to land use and accessibility, land
values can also be affected by topography and
location in a region. Based on Setiawan's research
(2006), topography is a limiting factor for the
development of an area because of its nature that is
not easily changed, however there are efforts made
by humans to change topography such as ground
mengurug to overcome the problem of topographic
height. While the location is defined as a place or the
selection of locations in one area to meet current or
future needs.
The value of the land will also be affected by the
distance to the Central Business District (CBD), the
farther from downtown the lower the land price.
Locations that are in the center of new growth will
also increase the value of the land significantly, the
greater the growth will lead to higher land value
(Bintoro, 2015). Based on the above it is proposed
the following hypothesis:
Nasution, F., Aulia, D. and Fachrudin, H.
Factors Affecting the Value of Land on the Street of Williem Iskandar Pasar V Medan Estate Sei Tuan District, Deli Serdang Regency.
DOI: 10.5220/0010074201790183
In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages
179-183
ISBN: 978-989-758-449-7
Copyright
c
 2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
179

H
1
: Suspected types of land use have influence
significantly to the value of the land.
H
2:
Suspected of accessibility have a significant
effect on land values.
H
3:
Suspected topography has a significant impact
on land values.
H
4:
Suspected locations have a significant effect on
land values,
H
5:
Suspected distance has a significant effect on the
value of the soil
2 METHOD
The population in this study was all commercial
functions that have been built on Street Williem
Iskandar Pasar V Desa Medan Estate in front along
Street Williem Iskandar Pasar V Medan Estate.
Street of Williem Iskandar Pasar V Medan Estate is
divided into three hamlets namely IV, VII, and VIII
hamlets. Hamlet IV has a population of 371 Head of
families . Based on the population of this study, the
total population of 63 families. The determination of
the number of samples in this study using the total
sampling method that takes the entire study
population so that the number of research samples is
63 people.
3 RESULT AND DISCUSSION
3.1 Validity Test
Test results on the 21 items of research statements
can be summarized in the following table:
Table 1 : Validity Test
Variable Q R Calculate Description
Land User
Type (X
1
)
Q1 0.436 Valid
Q2 0.696 Valid
Q3 0.465 Valid
Q4 0.692 Valid
Q5 0.562 Valid
Accessibility
(X
2
)
Q6 0.615 Valid
Q7 0.689 Valid
Q8 0.561 Valid
Topography
(X
3
)
Q9 0576 Valid
Q10 0.382 Valid
Q11 0536 Valid
Q12 0708 Valid
Location
(X
4
)
Q13 0.540 Valid
Q14 0.574 Valid
Q15 0.612 Valid
Q16 0.538 Valid
Q17 0.656 Valid
Q18 0.601 Valid
Q19 0.43 Valid
Distance (X
5
)
Q20 0.42 Valid
Q21 0.58 Valid
A question is said to be valid if the value of R
arithmetic> 0.361 (R Table). Based on the results of
the validity test in Table 1, it is known that all
questions are valid.
3.2 Reliability Test
The reliability test should be performed only on
questions that already have or fulfill the validity test,
so if it does not meet the validity test requirements
then it does not need to be forwarded for reliability
test (Noor, 2011: 130). Here are the results of the
reliability test against the valid question items.
Table 2 : Reliability Test
Statistics
Cronbach's
Alpha
N of Items
.914 21
If the Cronbach Alpha value is greater than
0.914, the research questionnaire is reliable
(Augustine and Kristaung, 2013), (Noor, 2011). It is
known that the questionnaire is reliable, because the
value of Alpha Cronbach 0.914 is greater than 0.8.
3.3 Classical Assumption Test
3.3.1 Test of Normality
The assumption test of normality uses Kolmogorov-
Smirnov test. Based on the result of normality test
with Kolmogorov-Smirnov test, the value of p-value
(p) is 0.326 which is greater than significance level
0.05, then normality assumption of residuals is
satisfied. If the probability value p 0.05, then the
assumption of normality is met.
ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramification Researches
180

If the probability is <0.05, then the assumption of
normality is not met.
Table 3 : Test of Normality
One-SampleKolmogorov-Smirnov Test
Unstandardized
Residual
N 63
Normal
Parametersa ,
b
Mean .0000000
Std.
Deviation
.15543980
Most Extreme
Differences
Absolute .082
Positive .082
Negative -.065
Kolmogorov-Smirnov Z .647
Asymp. Sig. (2-tailed) .796
a. Test distribution is Normal.
b. Calculated from data.
Notice that according to Table 3, the probability
valuesknown p or Asymp are. Sig. (2-tailed) of
0.796. Because the probability value p, ie 0.796, is
greater than the level of significance, ie 0.05. This
means the assumption of normality is met.
3.3.2 Multicollinearity Test
Multicollinearity test uses variance inflation factor
(VIF). The expected VIF is less than 10 indicating
there is no multicollinearity symptom. Table 3 is
displayed multicollinearity test uses VIF. Based on
the multicollinearity test result in Table 3, VIF for
each independent variable are less than 10 indicating
there are no multicollinearity symptom.
Table 4 : Test Multicollinearity
Model
Collinearit
y
Statistics
Tolerance VIF
1 (Constant)
User Type Land (X
1
) .909 1.100
Accessibility (X
2
) .809 1236
Topography (X
3
) .889 1.125
Location
(
X
4
)
.857 1.167
Distance
(
X
5
)
.925 1,081
Notice that based on Table 4, it is known that the
VIF value of the user type field variable is 1,100, the
VIF value of the accessibility variable is 1.236, the
VIF value of the topographic variable is 1,125, the
VIF value of the location variable is 1.167 and the
VIF value of the distance variable is 1,081. Since
each VIF value is not greater than 10, there are no
severe multicollinearity symptoms.
3.3.3 Heteroskedasticity
The coefficient of significance should be compared
with a predetermined level of significance (5%). If
the significance coefficient is greater than the
specified level of significance, it can be concluded
that there is no heteroscedasticity
(homoscedasticity). If the significance coefficient is
smaller than the specified level of significance, then
it can be concluded heteroscedasticity occurs.
Table 5 : Heteroscedasticity Test with Glejser Test
Coefficientsa
Model
Unstandardi
zed
Coefficients
Standardize
d
Coefficients
t Si
g
.B
Std.
Erro
r
Beta
1 (Constant) .10
0
.086 1.153 .25
4
User Type
Land (X
1
)
-
.01
9
.013 -.181 -1420 .16
1
Accessibilit
y
(
X
2
)
.00
1
.012. .010 .071 .94
4
Topography
(X
3
)
.01
3
.012 .137 1,064 .29
2
Location
(
X
4
)
.02
8
.015 .251 1,914 .06
1
Distance
(X
5
)
-
.01
4
.009 -.201 -1593 .11
7
Based on Table 5, it is known that Sig value. Glejser
of the type variable.user.lahan is 0.161, the value of
Sig. The glejser of the accessibility variable is 0.944,
the Sig value. The glejser of the topographic variable
is 0.292, the Sig value. The glejser of the location
variable is 0.061 and the Sig value. The glejser of
the distance variable is 0.117. Given all values of
Sig Glejser> 0,05, it is concluded there is no
heteroskedastistas.
Factors Affecting the Value of Land on the Street of Williem Iskandar Pasar V Medan Estate Sei Tuan District, Deli Serdang Regency
181

3.4 Multiple Linear Regression
3.4.1 Simultaneous Effect Significance Test
(Test F)
Test F aims to test the effect of independent
variables together or simultaneously to the
dependent variable.
Table 6 : Test of Simultaneous Influence with Test F
ANOVAb
Model
Sum of
Squares df
Mean
Squar
e F Sig.
1 Re
g
ression .514 5 .103 3,913 .004
a
Residual 1.498 57 .026
Total 2,012 62
a. Predictors: (Constant), Distance (X
5
), Accessibility
(X
2
), User Land Type (X
1
), Topography (X
3
),
Location
(
X
4
)
b. Dependent Variable: Land Market Value (Y)
Based on Table 6, the Sig value is known. is
0.004 and the value of F
h
 3,913. Because Sig.
0.003  0.05 and F
h
 3,913  F

 2,376
(F tables presented in the annex), it was concluded
that the simultaneous effect of all independent
variables, namely the type of land users,
accessibility, topography, location, distance
statistically significant against the market value of
the land.
3.4.2 Multiple Linear Regression Analysis
and Partial Effect Significance Test
(T test)
Table 7 presents regression coefficient value, and t
statistic value for partial effect test.
Table 7 : Significance Test of Partial Influence (T test)
Model
Unstandardiz
ed
Coefficients
Standardize
d
Coefficients
t Si
g
.B Erro
r
Beta
1
(
Constant
)
.038 .176 -.218 .828
User Type
Land (X
1
)
.003 .027 .015 .124 .902
Accessibil
ity (X
2
)
.001 .024 .004 .028 .977
Topograph
y
(
X
3
)
.053 .025 .256 2.113 .039
Location
(X
4
)
.063 .030 .262 2.120 .038
Distance
(
X
5
)
.037 .018 .244 -
2.056
.044
From the above data , it can be concluded that X
1
and X
2
, Sig> alpha, while X
3
to X
5
, Sig <alpha. This
means that X
1
and X
2
are not affected Y, whereas X
3
to X
5
is said to have an effect on Y.
Based on Table 5.12, we get the following multiple
linear regression equation.
Y  0,038  0,003X

 0,001X

 0,053X


0,063X

 0,037X

e (1)
a. H
1
: It is known that regression coefficient value
of land user type is 0,003, with significance
value (Sig.) 0,902> 0,05 significance level, hence
land user type have no significant effect to
market value of land.
b. H
2
: The value of regression coefficient of
accessibility is 0.001, with significance value
(Sig.) 0,977> 0,05 significance level, hence
accessibility has no significant effect to market
value of land.
c. H
3
: The value of regression coefficient of
topography is 0,053, with significance value
(Sig.) 0,039 <significance level 0,05, hence
topography have significant effect to market
value of land.
d. H
4
: The value of the regression coefficient of the
location is 0.063, with a significance value (Sig.)
0.038 <0.05 significance level, then the location
has a significant effect on the market value of the
land.
e. H
5
: Given the value of the regression coefficient
of distance is 0.037, with the significance value
(Sig.) 0.044 <0.05 significance level, then the
distance significantly influence the market value
of the land.
3.4.3 Determination Coefficient Analysis
The coefficient of determination (R

) is a value
(value of proportion), which measures how much of
the ability of independent variables used in the
regression equation, in explaining the variation of
the dependent variable.
ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramification Researches
182

Table 8 : Coefficient of Determination
Model R
R
Square
Adjusted R
Square
Std. Error of
the Estimate
1 .505
a
.256 .190 .1621140
a. Predictors: (Constant), Distance (X
5
), Accessibility
(X
2
), User Land Type (X
1
), Topography (X
3
),
Location
(
X
4
)
b
. Dependent Variable: Market Value Land (Y)
Based on Table 8, the coefficient value of
determination R
2
located on the R-Square column.
Unknown value determination coefficient
R
2
=.256.The value means all free variables, ie land
user type, accessibility, topography, location,
distance simultaneously affect the variable of market
value of land equal to 25,6%, the rest equal to 74,4%
influenced by other factors.
4 CONCLUSIONS
Based on the results of research, some answers to
research questions that have been submitted to the
respondent in accordance with the objectives and
hypotheses proposed in this study, it can be
concluded that the type of land use and accessibility
does not affect the value of the land. This is
evidenced by the significance value of these
variables is not smaller than alpha (0.05).
Topographical variables and distance to the CBD
have a significance value smaller than the alpha of
0.039 and 0.044. While the location becomes the
most influential variable to the value of the soil that
has the smallest significance value among some
other variables of alpha is equal to 0.038. So from
the results of the study concluded the location of a
commercial function becomes the most important
influence on the value of land on the street of
Williem Iskandar Pasar V Medan Estate.
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Factors Affecting the Value of Land on the Street of Williem Iskandar Pasar V Medan Estate Sei Tuan District, Deli Serdang Regency
183