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It is not necessarily more expensive always. Property values tend to increase as surrounding improvements occur. This could be an improved access road, a park, commercial bulidings, or other homes. Centers of town are usually where development starts and then expands radially as the population grows. If the land is more expensive it is because the surrounding businesses are prosperous and the residents of the nearby home have a higher annual incomes. From economics we know that higher demand increases costs.

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Q: Why is land more expensive nearer the centre of a town?
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