The conclusions

1. Prices for land in price mechanism are divided into three groups:

• High prices (100 USD/m² and over), are characteristic of the capitals and cities with very large population;

• Average prices (1-60 USD/m²), are typical for other cities and their suburbs;

• Low prices (0, 05-0,5 USD/m²),are characteristic of the agricultural lands.

2. Land is a specific product that is always in one place. Therefore, the main pricing factor is the location of a land parcel. Various factors are involved in the process of price mechanism in different degrees. In [175] pricing factors are divided into four levels according to the degree of influence on the land price:

The first level of the factors of price mechanism:

• Location – the capital/ city/ village;

• Location – territory (urban development zone) in the capital or in a city;

• Location – within the territory;

• Location – transport and communication;

• Location – engineering infrastructure;

• Location – view from a window;

The legal status of the territory

The existing structure

The second level of the factors of price mechanism:

• Conditions of planning and functional zoning;

• Permitted use;

• The rights of building;

• Temporary restrictions on the rights of building;

• Additional requirements;

• Market conditions and refinancing rate;

• The availability of mortgage loans;

• Terms of property tax and unemployment;

The third level of the factors of price mechanism:

• Construction contract;

• Building density;

• Additional payments;

• Terms of drainage;

• Ecology;

• The cost of road construction;

• Easements;

• Leases.

The fourth level of the factors of price mechanism:

• The form of land;

• Type of structure;

• Year, size, quality of construction;

• Type of industrial building;

• Availability of free labor;

• Rent

• Need for premises;

• Need for housing.

The price of land due to the place of location in system of production and dispersal, its administrative status, level of territorial building, the economic activity that is directly related to the number of its inhabitants. In this sense, it is interesting empirical formula of [19], which is obtained from an analysis of 3000 transactions for the sale of land parcels in Ukraine in 1998-2000:

P_k=P₀^{k ln a},

P_k – average price 1 m² of land parcels of k-category of the cities, hrn;

P₀ – average price 1m² in the cities with population fewer than 10 000 people (3,52 hrn);

a – constant, which is determined empirically (is 1, 16);

k – the serial number of the category of the city with the exact number of population ( from 0 until 7 – table 4.2.).

This independence shows the acceleration, exponential rise in the value of land in the transition from small-and medium-sized cities to big and largest cities in Ukraine.

Determination of the total land value of certain categories of rural locations comes into conflict with the relevance of land price. The land price is always determined by other factors such as the degree of development, the nature and size of the functional use of the site. There is coincidence of minimal value in land prices in large cities, with prices in small towns.

3. All countries abandoned the practice when primary market is using a price mechanism principle (normative), but on the secondary market is using another price mechanism principle (market). Negative effects of such a combination are important if normative prices were very different from market price of land. And these relations have their place in the cities of Belarus.

4. Price mechanism of land has another important rule: prices of property and long-term lease of land are the same.

5. Purchasing capacity has affection on price mechanism. It is the amount public funds, which may come on the property market. The characterization of this factor for some countries is shown in Table 3.

Table 3. The ratio of average price of a house with average square 75 m² to the average monthly wage.

Slovenia	Estonia	Latvia	Lithuania	The United Kingdom	The Republic of Belarus
13[12]	35-75[10]	30-90[10]	80-115[10]	3-5[12]	312