Signaling overhead incurred in location management becomes significant in PCS (Personal Communication Systems), especially with many users of high mobility. In such cases, an efficient location management scheme plays an important role in signaling. In this paper, we propose a new location management strategy which is based on the centralized database architecture with HLR/VLR concept. Our main idea is to reduce the number of location registrations by grouping MTs (Mobile Terminals) with a similar velocity and the same moving direction. Our scheme can reduce the total signaling cost of location management by reducing the cost of location registration more than the increased cost of call delivery. Simulation results show that our scheme outperforms current methods in location registration cost as long as CMR (call to mobility ratio) is not high and has a superior performance in the total signaling cost with low CMR and high population.