Land prices and determinants of socio-economic development in Pleiku, Central Highlands, Vietnam

Abstract

The rapid urbanization of Pleiku City, Vietnam, has led to a sharp increase in the demand for and prices of residential land, creating challenges for urban management and land valuation. This study aims to identify and quantify the key factors influencing residential land prices in Pleiku to provide a scientific basis for land use planning and smart urban development. Data were collected through surveys of 30 state officials involved in land valuation and 250 households living along major streets in Pleiku. Cronbach’s alpha was used to test the reliability of the collected data, and exploratory factor analysis (EFA) was used to identify influencing factor groups. The results show that residential land prices are strongly influenced by multiple factors, with location and infrastructure playing the most decisive roles. Market land prices were found to be approximately 1.5–2 times higher than state-regulated prices. Among the identified factor groups, location and infrastructure had the strongest influence, followed by economic, social, legal, and specific land use factors. Price differences between land plots mainly reflect variations in location, street characteristics, accessibility, and commercial potential. The study concludes that location and infrastructure development are the dominant drivers of residential land prices in Pleiku. These findings have important implications for land valuation, urban planning, and the implementation of smart urban construction policies in rapidly developing cities in Vietnam.