MASS APPRAISAL APPLICATION FOR LAND VALUATION USING REGRESSION MODEL: A CASE STUDY IN THE C ZONE OF NAM HOI AN PROJECT, THANG BINH DISTRICT, QUANG NAM PROVINCE, CENTRAL VIETNAM
PDF

Keywords

land valuation
mass appraisal
Hoi An
regression model

Abstract

This study focuses on building a regression model in the series of land pricing for frontages and alleys in the C zone of Nam Hoi An project, Thang Binh district, Quang Nam province. The research applied data collection method, data processing method, regression analysis method to build a model of mass land valuation. The results of this study show that the location of the facade in the C zone of ​​Nam Hoi An project is affected by various factors such as security, plot width, plot shape, distance to Hoi An city, traffic congestion, land use type, and road boundary. Meanwhile, the unit price of land in the alley is influenced by factors such as security, alley level, plot shape, distance to Hoi An city, road structure, traffic congestion and alley location. The biggest factor affecting frontage land price is the type of land use with regression coefficient BLAND_USE_TYPE = 14,199. In terms of unit price of alley land, that is the type of alley with regression coefficient BALLEY_LOCATION = 10,772. The results of verification of the accuracy of the land unit price from the regression model to the compensation land unit price have a negligible difference, which is completely consistent with the requirement of determining the price level close to the market price. The results of this study show the practical applicability of mass appraisal for land valuation using a regression model in land acquisition and financial management of land.

https://doi.org/10.26459/hueunijard.v129i3C.5931
PDF

References

  1. Cochran, W. G (1977), Sampling Techniques, Wiley Eastern Limited, Third Edition, New Delhi.
  2. H. V. Cuong (2017), Real Estate Market Curriculum, National Economics University Press.
  3. N. Q. Hoa (2015), Application of mass valuation methods in state management of land, Journal of Development and Integration, 22(32).
  4. N. Q. Hoa and N. H. Duong (2016), Building a model of mass land valuation for Go Vap district, Ho Chi Minh City, Journal of Economic Development, 26(3), 82–103.
  5. N. T. Huan (2009), Curriculum on Land and Other Real Estate Valuation, Agricultural Publishing House.
  6. IAAO (2017), Standard on Mass Appraisal of Real Property, IAAO: Kansas City, MO, USA.
  7. IVSC (2017), International Valuation Standards, IVSC: London, UK.
  8. Jahanshiri. E, Buyong. T, Shariff. A.R.M (2011), A Review of Property Mass Valuation Models, Pertanika J.Sci. Technol, 19, 23–30.
  9. John D Benjamin and C. F. Sirmans (2004), Mass Appraisal: An Introducion to Multiple Regression Analysis for Real Estate Valuation, Journal of real estate practise and education.
  10. T. H. Lien, H. V. Hung (2013), Building land value areas for land valuation and land management, Agricultural Publishing House.
  11. Lin. C. C, Mohan. S. B (2011), Effectiveness comparison of the residential property mass appraisal methodologies in the USA, Int. J. Hous. Mark, Anal, 4, 224–243.
  12. Ramanathan Ramu (2002), Introductory econometric with application, Fort Worth: Harcourt College Publishers.
  13. RICS (2017), RICS Valuation – Global Standard, RICS: London, UK.
  14. Tajani. F, Morano. P (2018), Automated valuation models for real estate portfolios A method for the value updates of the property assets, J. Prop. Invest. Finance , 36, 324–347.
  15. Thang Binh People’s Committee (2019), Socio-economic development report of Thang Binhcommittee district, Quang Nam.
  16. Thang Binh district land fund development center (2020), Summary report for activities in 2019, Quang Nam.
  17. The Appraisal Foundation (2018), Uniform Standards of Professtional Appraisal Practise, The Appraisal Foundation: Washinton. DC, USA.
  18. Vietnamese Government (2014), Decree No. 44/2014 on land price regulation, Hanoi.
  19. Vietnamese Congress (2013), Land Law, Ha Noi.
  20. Daikin Wang and Victor Jing Li (2019), Mass Appraisal Models of Real Estate in the 21st Century: A Systematic Literature Review, Sustainability, 11, 7006.
  21. Yeh. I.C, Hsu. T. K (2018), Building real estate valuation models with comparative pproach through case-based reasoning, Appl. Soft Comput, 65, 260–271.