LOCATION ANALYSIS
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Objective of this chapter:
To discuss
۰ the concept and importance of location analysis
۰ the components of situs analysis
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At the end of this chapter, you should be able to:
▪ understand the situs concept in relation to property location;
▪ explain how location analysis is carried out in a market study;
▪ explain the so-called environment of a property project.
Introduction
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most important factors affecting viability and feasibility
physical and legal attributes of a property project are
evaluated in relation to location
E.g. zoning, topography or terrain, infrastructure, and
skyline of the city.
Location, location, location!
First, the internal space planning of the site and its
immediate surroundings.
Second, the project’s situs characteristics: the relationship
between the site and its use and the total surroundings,
over a given time frame (Andrews, 1971).
Third, the overall structure of an area within which the
project lies and the interrelationships within a community’s
land use pattern.
See Figure 6.1 – a proposed condominium project on a
parcel of land off Jalan Duta, Kuala Lumpur.
Figure 6.1: The Three Levels of Locational Attributes
SITE AND SITUS
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concerns with:
the placement of spatial attributes
how these attributes relate to specific functions
begins with a specific site
within the context of specific use
inspects the site
investigate the locational characteristics of the
neighbourhood
highest-and-best use analysis: how?
use is thereby tied to market analysis or appraisal.
Site Location & the Immediate Area
layout of a site and location of various activities on the
property relate to shape of parcel.
► physical and locational attributes of site should be
considered.
► The dimensions of the site determines:
► shape of the property
► influence the placement of structures,
► layout of yard improvements and parking facilities,
► general maintenance requirements.
► Some important spatial considerations are (Fanning et al.,
1994):
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Site Location & the Immediate Area
(contd.)
 number of sides of a land parcel:
A multi-sided parcel is more suitable for retail
One-side parcel is more suitable for residential
 functional layout of the facilities on site
ease of ingress to and egress from the site
Placement of structures and parking areas
key to the site’s marketability
Site Location & the Immediate Area (contd.)
 degree of “friction”
how well the site is linked to its environment.
traffic flow inward or outward (goods, services, or people)
convenient access with a minimum of aggravation.
mode of transport for goods
overall access to the site
flow of traffic within the site
On-site “friction” can be reduced by the placement and
design of facilities, which should ensure that the property
has market appeal, both functional and aesthetic.
The Situs Factor
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What is it?
“relationship between the surrounding environment and a
specific land use on a specific land parcel over a given
time”
a function of time as well as space
Basic theory:
land uses are interdependent and economic activities are
interrelated
site is physically fixed but economically flexible
Physical location: the geo-position of one site relative to
that of another
Economic location: a site functions as a locus of economic
activity in association with other loci within a dynamic
urban
The Situs Factor (contd.)
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Why situs factor?
forces outside the land parcel alter the relationships of
uses
activities conducted on the site and the economic nature of
the site can change
location analysis of a site cannot be separated from the life
cycle of a neighbourhood
(what do you understand by neighbourhood life cycle?)
the building block that underlies all economic issues
links highest-and-best use and market analysis
The Situs Factor (contd.)
Situs Analysis:
 identification of the activities in the area
 study of the nature of the associations between
these activities
 analysis of the accessibility of the site to the
surrounding area
 evaluation of the impact of the total area
on the site’s use
The Situs Factor (contd.)
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Market Boundaries
economic activities in the neighbourhood or trade area
delineated by:
physical, political, and socio-economic boundaries
time-distance relationships (travel times) to and from
common destinations
Identification of Activities
Existing land uses to a major economic base study
Function like economic magnets
The Situs Factor (contd.)
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Represented by:
major employers (e.g. factory, shopping complex)
recreational facilities
institutions (UTM, Kolej Selatan)
services (eating outlets, photocopy, photo shops)
physical features (rivers, roads).
Look at neighbourhood
(what do you understand by neighbourhood?)
Primary/key activities of the neighbourhood
Land use survey
The Situs Factor (contd.)
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Identification of Associations
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Activities may be:
complementary
subservient
competitive
even repel one another
Land use associations:
dominant use/subordinate use;
dominant use/ancillary use;
co-dominant uses (or dominant use)/ satellite uses
Nature of the relationship among uses determined by
economic functions
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The Situs Factor (contd.)
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Accessibility Analysis
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Degree of convenience or inconvenience involved in
moving people, goods, and services between
different loci of activity
Degree of friction, or inconvenience, measured in
terms of time, cost, and aggravation. Accessibility is
akin to negative transportation costs
 site’s accessibility  cost to get to the site 
potential site return
Reflected in what one user (or buyer) will pay over
another for any specific use.
Accessibility on two levels:
flow of people between one area and another
ingress to an egress from the property, and the
immediate area of the site
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Macro & micro analyses
► Using
► What
the note, summarise:
is macro analysis?
► What is micro analysis?
► What do you do in each of the analysis?
► How is each of these analyses is important?
Step environment
► Revision
of lecture series 4
Thank you!