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Geographic Information System (GIS) is a computer-based system designed to handle the data query, manipulation, analysis and space visualization of spatial data. Clapp et al. (1997) described that geographic information systems (GIS) as a powerful tool to store and manipulate large amounts of information on spatial relationships. Information depicted includes graphic and attribute information (Taher Buyong, 1990). Development of computer technology nowadays already solves many problems which are mainly in process of storing data, analyse and present geographically information.
2.1.1 GIS Definition and Concept
Geographic Information System (GIS) was an information system designed that related with referenced data either spatial or geographical coordinates (Ruslan & Noresah, 1998). It also is a system that is efficient in the data management field that involves a combination of spatial and attributes data stored in a single database. GIS can also help in making decisions based on the results of the analysis generated by the system. According to Li et al. (2003) in Heng et al. (2005), GIS can use to handle both spatial and non-spatial data simultaneously where its result will show in its specific roles in data management and integration, data query and analysis, and data visualization.
However, Maguire (1991) stated that it was difficult to define GIS because there were many ways to define and classify the object and subject. Heng et al. (2005) defined GIS is a system that combines spatial and non-spatial data to build a thematic map which describing a variety of demographic information relating to population, housing and economic activities in order help to solve location problems and present the results in visualized form. According to Clarke (1986), GIS was computer assisted systems for the capture, storage, retrieval, analysis and display of spatial data. While, from Burrough (1986) definition, GIS was a powerful set of tools to collect, store, retrieve at will, changing or transforming and displaying spatial data from the real world. Then, GIS was a database management system with a spatial reference where it can provide researchers with excellent control over spatial relationships as described by Clapp et al. (1997).
Based on the given definitions, it is clear that GIS is focused on processing and analytical capabilities in producing new useful information in understanding the relationship of space (Ruslan & Noresah, 1998). Generally, GIS is a management collection of computer hardware, software, geographic data and the institutions had been efficiently designed to collect, store, update, manipulate, analyze and display all forms of information referred to geographical location (Aronoff, 1989). In order to achieve effectiveness and better stimulation, various GIS application had been designed to meet and fulfill usersââ‚¬â„¢ needs and unlimited demands. Besides that, data presented would be more effective, efficient and attractive with the conceptualization of visual and display.
2.1.2 GIS Components
According to Abd. Majid et al. (2000), there are six main components for Geographic Information System (GIS) as follows:-
Data is the inputs enter into the system either spatial or non-spatial data. Data entry technical can be done via the keyboard, scanning, digitization and photography. The quality of the data produced will be more precise, accurate and update.
Lumley (1984) stated that, software is a program that enables computer to present or perform a specific task through a set of instructions that has enrolled as a computer program. These instructions allow the operation or calculation performed by the computer. Example of the operating system software such as Microsoft Windows 2007, database management systems such as Microsoft Access 2007 and ArcGIS as an example for software.
Hardware is required in GIS for data entry, data processing, data storing and displaying the data information stored inside.
In general, GIS application can be categorized into three groups which are social, economic and military. This study is categorized under economic.
People are an essential component in applying GIS. This is because human as managers and engineers to ensure that GIS is used in the activity.
The procedures used in GIS are data entry, data storage, data processing, presentation, management and maintenance system. These procedures are done in creating an effective information system.
Thus, these components will be coordinated so that allows the system to function smoothly. These components will make the GIS a system which helps in producing results faster and more accurate if applied in the real estate development.
2.2 GIS Application in Real Estate Development
Zhao & Zhang (2009, pg1) indicated that, ââ‚¬Å“In recent years, relevant administrative fields of real estate have been developed into a lot of branch industries related to real estate due to the real estate developing rapidly. Directly, it has been strengthened the difficulty of the real estate fields because the related administrative content and business procedure have been changed with it. Therefore, a technology so called GIS was set up to help to operate convenient and enhance the administrative intensity of real estate, and also improve the working efficiency. The establishment of GIS has realistic meaning for normative managing real estate and promoting the development of real estateââ‚¬Â.
Geographic Information System (GIS) technology integrates common database operations such as query and statistical analysis with the unique visualization and geographic analysis benefits offered by maps. These abilities distinguish GIS from other information systems and make it valuable to a wide range of public and private companies for explaining events, predicting outcomes, and planning strategies (www.gisdevelopment.net). Real estate industry is getting more challenging day by day due to the rapid development nowadays. Especially in the real estate development, it needs the advanced technology helps to make the right decision so that can minimize or avoid the risk of failure for a project development might faced by real estate developers.
As we know, GIS is a computer based system which is used to digitally reproduce and analyse the features present on the earth surface and the events that take place on it. In the light of the fact, almost 70% of the data has geographical reference as its denominator. It becomes imperative to underline the importance of a system which can represent the given data geographically (www.gisdevelopment.net).
According to Zheng & Zhou (2001), GIS is specially designed to handle spatial data and capability to perform these tasks.GIS developed as a generic tool with capabilities to deal with uncertainties where it can be applied to many fields which involve optimal spatial decision making. GIS can be used practically to execute solution for best possible spatial decision making in the real estate industry. In the meanwhile, it is shown that real estate developers need GIS as a database management tool to assist them in doing the decision making. The establishment of decision making support system has many advantages due to it can be used to strengthen and improve real estate control and to promote the development of the market (Yang & Qiao,2009).
2.2.1 GIS Application in Site Selection
GIS is a powerful computer-based tool to integrate and analyze spatial data from various sources. GIS allows geographically referenced information to be stored, edited, manipulated and analyzed to produce interpretive map and related statistic relevant for decision making. GIS can provide an effective platform for customized spatial modelling (Barnett and Okowura 1993; Conway and Lathrop 2005; Goodchild 2005; Li and others 2005; Longley and Batty 2003; Tu and others 2007; Sorrentino et al.,2008, pg 4). Barnett & Okoruwa (1993) indicated that there were few studies applied GIS in planning land use and presented how GIS could be applied in real estate market analysis. They demonstrated the application of GIS in market analysis where specifically in site selection and location analysis for residential development as well as in highest and best use analysis. In the determination of site selection, the siteââ‚¬â„¢s specific physical and geographic characteristics must able to satisfy the functional objectives of a particular land use.
Heng et al. (2005) defined that site selection was crucial part when planning for a real estate project development where it was the core element of the preplanning phase then the project life cycle will be begins. Mostly, developers have to prioritize or select sites for development is based on the number of sites on hand which are available for a project development due to the limited resources. Besides, they may look for and select the best new site from potential locations for development.
Site selection usually involves determining a suitable site for a problematic development. Therefore, several criteria should be studied and researched to obtain the accurate results. Among the key aspects to be studied in a selection operation through the overlay technique is the aspect of land use, slope, geology, accessibility, facilities, population density and others. All aspects of the data are analyzed to determine and identify potential areas and absent for a development.
2.2.2 GIS Application in Determine Property Selling Price
According to Zhao & Zhang (2009), GIS can be used to manage the basic information of real estate and at the same time produced the statistical report where selling property department can refer to it as a reference decision when determine the price for property and carry on to sell it.