ABSTRACT Title : Factor Analysis Changing the Commercial and Residential Land Prices in the city of Banda Aceh Name : Indri Yani Student ID Number : 1301101010002 Subject : Economic Development Faculty : Economic and Business Supervisor : Talbani Farlian, SE, MA This study aims to determine factors influenced the change of commercial and residential land prices in the city of Banda Aceh. The data used in this research were the primary and secondary data. This research samples are taken from every district in the city of Banda Aceh by purposive random sampling method. The sampling used is the formula Slovin with totaly 100 samples. The model used is Confirmatory Factor Analysis (CFA) and the testing of the entire correlation matrix measured by the amount of Bartlett Test of Sphericity or Measure Sampling Adequacy (MSA). The results showed that there are two most important factors that lead to changes in the price of land in the city of Banda Aceh which are location and the accessibility of the location where the Eigenvalues is greater than 1 and the percentage of cumulative second factor is 45.624 per cent. Furthermore, all variables affect the price of land but only three of them that have a greater communalities value, which are the location, population density and spatial arrangement. The location, population density, and the spatial strongly influence the changes in commercial and residential land prices in the city of Banda Aceh by a closeness value of 72 per cent, 50.5 per cent, and 53.6 per cent respectively. Therefore, it is expected that the government of Banda Aceh may create a rule to stabilize the prices of commercial land and housing in the city of Banda Aceh so that the price of land can be sold at a reasonable price and easily accessible by the public, and thus, for further research, it is also advised to examine how many percentage the price of land will increase annually. Keywords: The Price of Land, Location, Accessibility x