Land market

Once land is traded as a commodity a land market is considered to exist. The land market most directly affects the urban environment and the quality of life in cities. Efficient and equitable land markets are a prerequisite for well functioning cities. .

Efficient functioning of land markets require efficient and updated land registration systems which clearly indicate legal ownership of land.

The key to efficient land markets is the easy and rapid availability of developed land. This does not mean less regulation. In fact in the urban periphery there is need for more planning controls.

Characteristics of efficient land markets
A well-functioning land market could be defined as one which is :
 * Efficient: The system governing the land market encourages quick development and transaction of land.
 * Equitable: The system governing the land market provides reasonable access to all income groups.
 * Environmentally sound: The system governing the land market protects its sustainable use for the good of both current and future users
 * Compatible: The system governing the land markets is integrated with other laws and regulations governing land, such as, planning, taxation and provision of public infrastructure and services.

Karakteristik pasar tanah yang efisien
Pasar tanah yang berfungsi baik adalah pasar tanah yang memiliki salah satu ciri berikut: : Efisien: Sistem yang mengatur mendorong pengembangan pasar tanah dan transaksi cepat tanah. Adil: Sistem yang mengatur pasar tanah menyediakan akses yang wajar untuk semua kelompok pendapatan. Ramah lingkungan: Sistem yang mengatur pasar tanah melindungi penggunaan berkelanjutan demi kebaikan kedua saat ini dan masa depan pengguna.

Cocok: Sistem yang mengatur pasar tanah terintegrasi dengan hukum dan peraturan lainnya yang mengatur tanah, seperti, perencanaan, perpajakan dan penyediaan infrastruktur publik dan layanan.

Government Intervention in Land Market
Three main justifications for government interventions in the urban land market are often cited :
 * 1) Eliminating market imperfections and failures to increase operating efficiencies.
 * 2) Removing externalities so that the social costs for land market outcomes correspond more closely to private costs.
 * 3) Redistributing society's scarce resources so that disadvantaged groups can share in society's output.