5 LOCATION ANALYSIS

LOCATIONLOCATION ANALYSIS ANALYSIS ► Objective of this chapter:Objective of this chapter:► To discussTo discuss

۰۰ the concept and importance of location analysis the concept and importance of location analysis ۰۰ the components of situs analysisthe components of situs analysis

► At the end of this chapter, you should be able to:At the end of this chapter, you should be able to:

▪ ▪ understand the situs concept in relation to property location;understand the situs concept in relation to property location;▪ ▪ explain how location analysis is carried out in a market study;explain how location analysis is carried out in a market study;▪ ▪ explain the so-called environment of a property project.explain the so-called environment of a property project.

IntroductionIntroduction► most important factors affecting viability and feasibilitymost important factors affecting viability and feasibility► physical and legal attributes of a property project are physical and legal attributes of a property project are

evaluated in relation to locationevaluated in relation to location► E.g. zoning, topography or terrain, infrastructure, and E.g. zoning, topography or terrain, infrastructure, and

skyline of the city.skyline of the city.► Location, location, location!Location, location, location!► First, the internal space planning of the site and its First, the internal space planning of the site and its

immediate surroundings.immediate surroundings.► Second, the project’s Second, the project’s situssitus characteristics: the characteristics: the

relationship between the site and its use and the total relationship between the site and its use and the total surroundings, over a given time frame (Andrews, 1971).surroundings, over a given time frame (Andrews, 1971).

► Third, the overall structure of an area within which the Third, the overall structure of an area within which the project lies and the interrelationships within a project lies and the interrelationships within a community’s land use pattern.community’s land use pattern.

► See Figure 6.1 – a proposed condominium project on a See Figure 6.1 – a proposed condominium project on a parcel of land off Jalan Duta, Kuala Lumpur.parcel of land off Jalan Duta, Kuala Lumpur.

Figure 6.1: The Three Levels of Locational Attributes

SITE AND SITUSSITE AND SITUS

► concerns with:concerns with:► the placement of spatial attributesthe placement of spatial attributes► how these attributes relate to specific functionshow these attributes relate to specific functions► begins with a specific sitebegins with a specific site► within the context of specific usewithin the context of specific use► inspects the siteinspects the site► investigate the locational characteristics of the investigate the locational characteristics of the

neighbourhoodneighbourhood► highest-and-best use analysis: how?highest-and-best use analysis: how?► use is thereby tied to market analysis or appraisal.use is thereby tied to market analysis or appraisal.

Site Location & the Immediate Site Location & the Immediate AreaArea

► layout of a site and location of various activities on layout of a site and location of various activities on the property relate to shape of parcel.the property relate to shape of parcel.

► physical and locational attributes of site should be physical and locational attributes of site should be considered.considered.

► The dimensions of the site determines:The dimensions of the site determines:► shape of the propertyshape of the property► influence the placement of structures,influence the placement of structures,► layout of yard improvements and parking facilities,layout of yard improvements and parking facilities,► general maintenance requirements.general maintenance requirements.► Some important spatial considerations are (Fanning Some important spatial considerations are (Fanning

et al., 1994):et al., 1994):

Site Location & the Immediate Site Location & the Immediate AreaArea (contd.) (contd.)

number of sides of a land parcel:number of sides of a land parcel:

A multi-sided parcel is more suitable for retailA multi-sided parcel is more suitable for retail One-side parcel is more suitable for residentialOne-side parcel is more suitable for residential

functional layout of the facilities on sitefunctional layout of the facilities on site

ease of ingress to and egress from the siteease of ingress to and egress from the site Placement of structures and parking areasPlacement of structures and parking areas key to the site’s marketabilitykey to the site’s marketability

Site Location & the Immediate AreaSite Location & the Immediate Area (contd.)(contd.)

degree of “friction” degree of “friction” how well the site is linked to its environment.how well the site is linked to its environment. traffic flow inward or outward (goods, services, or traffic flow inward or outward (goods, services, or

people)people) convenient access with a minimum of aggravation.convenient access with a minimum of aggravation. mode of transport for goodsmode of transport for goods overall access to the siteoverall access to the site

flow of traffic within the siteflow of traffic within the site

On-site “friction” can be reduced by the placement and On-site “friction” can be reduced by the placement and design of facilities, which should ensure that the property design of facilities, which should ensure that the property has market appeal, both functional and aesthetic.has market appeal, both functional and aesthetic.

The Situs FactorThe Situs Factor

► What is it?What is it?► ““relationship between the surrounding environment relationship between the surrounding environment

and a specific land use on a specific land parcel and a specific land use on a specific land parcel over a given time”over a given time”

► a function of time as well as spacea function of time as well as space► Basic theory:Basic theory:► land uses are interdependent and economic land uses are interdependent and economic

activities are interrelatedactivities are interrelated► site is physically fixed but economically flexiblesite is physically fixed but economically flexible► Physical location: the geo-position of one site Physical location: the geo-position of one site

relative to that of anotherrelative to that of another► Economic location: a site functions as a locus of Economic location: a site functions as a locus of

economic activity in association with other loci economic activity in association with other loci within a dynamic urban within a dynamic urban

The Situs Factor (contd.)The Situs Factor (contd.)

► Why situs factor?Why situs factor?► forces outside the land parcel alter the relationships forces outside the land parcel alter the relationships

of usesof uses► activities conducted on the site and the economic activities conducted on the site and the economic

nature of the site can changenature of the site can change► location analysis of a site cannot be separated from location analysis of a site cannot be separated from

the life cycle of a neighbourhoodthe life cycle of a neighbourhood► (what do you understand by neighbourhood life (what do you understand by neighbourhood life

cycle?)cycle?)► the building block that underlies all economic issuesthe building block that underlies all economic issues► links highest-and-best use and market analysislinks highest-and-best use and market analysis


Situs Analysis:Situs Analysis:

identification of the activities in the areaidentification of the activities in the area study of the nature of the associations study of the nature of the associations

between these activitiesbetween these activities analysis of the accessibility of the site to the analysis of the accessibility of the site to the

surrounding areasurrounding area evaluation of the impact of the total area evaluation of the impact of the total area on the site’s useon the site’s use


► Market BoundariesMarket Boundaries► economic activities in the neighbourhood or trade economic activities in the neighbourhood or trade

areaarea► delineated by:delineated by:► physical, political, and socio-economic boundariesphysical, political, and socio-economic boundaries► time-distance relationships (travel times) to and time-distance relationships (travel times) to and

from common destinationsfrom common destinations► Identification of ActivitiesIdentification of Activities► Existing land uses to a major economic base studyExisting land uses to a major economic base study► Function like economic magnetsFunction like economic magnets


► Represented by:Represented by:

► major employers (e.g. factory, shopping complex)major employers (e.g. factory, shopping complex)► recreational facilitiesrecreational facilities► institutions (UTM, Kolej Selatan)institutions (UTM, Kolej Selatan)► services (eating outlets, photocopy, photo shops)services (eating outlets, photocopy, photo shops)► physical features (rivers, roads).physical features (rivers, roads).

► Look at neighbourhoodLook at neighbourhood► (what do you understand by neighbourhood?)(what do you understand by neighbourhood?)► Primary/key activities of the neighbourhoodPrimary/key activities of the neighbourhood► Land use surveyLand use survey


► Identification of AssociationsIdentification of Associations► ► Activities may be:Activities may be:► complementarycomplementary► subservientsubservient► competitivecompetitive► even repel one anothereven repel one another► Land use associations:Land use associations:► dominant use/subordinate use;dominant use/subordinate use;► dominant use/ancillary use;dominant use/ancillary use;► co-dominant uses (or dominant use)/ satellite usesco-dominant uses (or dominant use)/ satellite uses► Nature of the relationship among uses determined by Nature of the relationship among uses determined by

economic functionseconomic functions


► Accessibility AnalysisAccessibility Analysis

► Degree of convenience or inconvenience involved in Degree of convenience or inconvenience involved in moving people, goods, and services between different moving people, goods, and services between different loci of activityloci of activity

► Degree of friction, or inconvenience, measured in terms Degree of friction, or inconvenience, measured in terms of time, cost, and aggravation. Accessibility is akin to of time, cost, and aggravation. Accessibility is akin to negative transportation costsnegative transportation costs

► site’s accessibility site’s accessibility cost to get to the site cost to get to the site potential potential site return site return

► Reflected in what one user (or buyer) will pay over Reflected in what one user (or buyer) will pay over another for any specific use.another for any specific use.

► Accessibility on two levels:Accessibility on two levels:► flow of people between one area and anotherflow of people between one area and another► ingress to an egress from the property, and the ingress to an egress from the property, and the

immediate area of the siteimmediate area of the site

Macro & micro analysesMacro & micro analyses►Using the note, summarise: Using the note, summarise:

►What is macro analysis?What is macro analysis?►What is micro analysis?What is micro analysis?►What do you do in each of the What do you do in each of the

analysis?analysis?►How is each of these analyses is How is each of these analyses is

important?important?

Step environmentStep environment►Revision of lecture series 4Revision of lecture series 4

Thank you!Thank you!

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5 LOCATION ANALYSIS