Abstract
Land development in sub-urban areas is more frequent than in highly urbanized cities, causing land prices to increase abruptly and making it harder for valuers to update land values in timely manner. Apart from this, the non-availability of sufficient reliable market values forces valuers to use alternatives and subjective judgement. Land value is critical not only for private individuals but also for government agencies in their day-to-day land dealings. Thus, mass appraisal is necessary. In other words, despite the importance of reliable land value in all aspects of land administration, valuation remains disorganized, with unregulated undertakings that lack concrete scientific, legal, and practical foundations. A holistic and objective way of weighing geospatial factors through expert consultation, legal reviews, and evidence (i.e., news) will provide more realistic results than a regression-based method that does not comprehend valuation factors (i.e., physical, social, economic, environmental, and legal aspects). The analytic hierarchy process (AHP) enables these factors to be included in the model, hence providing a realistic result. The innovative land valuation model (iLVM), developed in this study, is an inclusive approach wherein experts are involved in the selection and weighing of 15 factors through the AHP. The model was validated using root mean squared error (RMSE) and compared with multiple regression analysis (MRA) through a case study in Baybay City, Philippines. Based on the results, the iLVM (RMSE = 0.526) outperformed MRA (RMSE = 1.953).
Highlights
Fast and updated land valuation has become part of the economic agenda [1] recently, especially in government land-related transactions such as taxation, expropriation, fragmentation, reallocation, and consolidation [2], or even in land administration and management [3]
The goal is to develop an innovative land valuation model by involving the experts of real estate such as assessors and appraisers, and government officials concerned with land resources in the different phases of development through a survey questionnaire and in-depth interview
In-person and online discussions with real estate appraisers, assessors, and environmentalist were performed to seek advice on both classification and scoring of sub-factors. Another survey questionnaire was prepared for residents that aimed to supplement sales data and determine land market value in their locality
Summary
Fast and updated land valuation has become part of the economic agenda [1] recently, especially in government land-related transactions such as taxation, expropriation, fragmentation, reallocation, and consolidation [2], or even in land administration and management [3]. Defining a precise and perfect valuation model remains difficult due to variations of such factors [7] and valuers’ perceptions; value is most often perceived as inconsistent and biased. This type of situation is no big issue for single and one-time pass land valuation. Regular and massive valuation, for example through mass appraisal for taxation, expropriations, land administration, and other similar purposes, requires updated and high levels of consistency and transparency
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