AVS. Arkitektúr verktækni skipulag - 01.12.2004, Blaðsíða 25

a discussion took place about what
influenced property prices. It was
mentioned that interest rates were
quite important. The valuation of
building land is also important. The
City of Reykjavík is a landowner
and the handing out of building
sites has for a long time been a
bone of contention between local
councillors not only in Reykjavík,
but everywhere in the Capital Area.
Previously, someone who received
a good site could sell it at a good
profit without making use of the
building right. Many thought that the
members of the political parties who
were most important in the deci-
sion were handed the building sites,
but this is not being claimed here.
Later a point-system was used and
finally the City of Reykjavík decided
to offer building sites on the open
market in the Grafarholt district. This
method showed well how build-
ing sites had been undervalued in
the city and this was a method by
which the landowner could claim a
reasonable part of the market value.
The City Economist has pointed
out that giving away building sites
is a parallel to the giving away fish-
ing quota. He has pointed out that
the city authorities have handed out
building sites and drawn up rental
contracts. The renter builds a build-
ing and can sell the building and the
rental contract. The price of land is
connected to the price of the build-
ing. The similarity with the fishing
quota is that the owner of quota can
sell it to the highest bidder without
the state, which could dispose of
the quota on behalf of the popula-
tion, receiving any profit. What is
dissimilar wíth the fishing quota
system and the handing out of
building sites is that the City is not
the only landowner in the City while
only the State can hand out fishing
quota to fishing companies. Various
landowners sell building sites. The
City Authorities also share directly in
the increase in the value of land as
properties are re-valued. The City
receives income from property taxes
but also from site rent which is only
0,18% of site valuation which cer-
tainly is very low. If land is bought
and let under these conditions it
would take 1.250 years to reclaim
the value of the investment without
interest. In a free market the rent
should be a reflection of the value of
sites. To test this the City Economist
has looked into rentai agreements
of the larger local authorities. From
this appears that Reykjavík charges
by far the lowest site rent for hous-
ing sites. The highest rent is being
charged in Vesturbyggð, around
3,75% and eastern Húnaþing,
3,59%. Compared to this it is easy
to argue the case of putting building
sites on the open market as most
local authorities in the Capital Area
are already doing.
Another issue which is prominent in
the planning discussion in Reykjavík
is the statement that “everybody"
wants to live in a certain type of
housing at some given time. It
is now maintained that there is
a shortage of small, one storey,
detached houses with a small gar-
den because EVERYBODY wants
to live like that. A few years ago
when the Grafarholt district was
being built it was maintained that
EVERYBODY would then like to live
in large flats. When these flats were
put on the market, the market had
changed and the demand was more
for small flats. In this discussion I
would like to say that information
and research into lcelandic hous-
ing needs and wishes are needed
that public authorities can use in
policy making and planning. It is
also important that this research is
professionally done because it is
easy to question research done with
a simple questioner where people
are asked how they would like to
live. Then you often get answers
that have no bearing on the financial
possibilities of people to move or
live in the type of housing it would
like and in the replies appear hopes
of people in an uncertain future - but
possibly we shall never succeed in
completing surveys quickly enough
to follow the gyrations of the market
and therefore both local authorities
and investors have to plan for some
diversity in new housing.
In planning it is important to take
economic aspects into considera-
tion. Of course it is fun to draw up
future plans without having to think
about kronas and aurar but elegant
plans on paper are of no use if
nobody wants to realise them. The
market must always be involved. In
future it is anticipated to strengthen
the economic aspect of planning still
further in Reykjavík by working with
specialists in economic planning.
In this article some aspects of plan-
ning have been touched upon but
one thing is sure: We have enough
tasks at hand, both in the discus-
sion and the implementation of
planning- and building issues in
lceland. ■
Fyrirhuguð byggð við Úlfarsfell./ Intended housing by Úlfarsfell.
avs 25