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Open AccessArticle

Development of an Innovative Land Valuation Model (iLVM) for Mass Appraisal Application in Sub-Urban Areas Using AHP: An Integration of Theoretical and Practical Approaches

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Remote Sensing and Geographic Information System, School of Engineering Technology, Asian Institute of Technology, 58 Moo 9, Klong Luang, Pathumthani 12120, Thailand
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Department of Development and Sustainability, School of Environment, Resources and Development, Asian Institute of Technology, 58 Moo 9, Klong Luang, Pathumthani 12120, Thailand
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Author to whom correspondence should be addressed.
Sustainability 2019, 11(13), 3731; https://doi.org/10.3390/su11133731
Received: 10 June 2019 / Revised: 29 June 2019 / Accepted: 4 July 2019 / Published: 8 July 2019
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). View Full-Text
Keywords: land valuation; mass appraisal; real estate; analytic hierarchy process (AHP); multiple regression analysis (MRA); geographic information system (GIS) land valuation; mass appraisal; real estate; analytic hierarchy process (AHP); multiple regression analysis (MRA); geographic information system (GIS)
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Bencure, J.C.; Tripathi, N.K.; Miyazaki, H.; Ninsawat, S.; Kim, S.M. Development of an Innovative Land Valuation Model (iLVM) for Mass Appraisal Application in Sub-Urban Areas Using AHP: An Integration of Theoretical and Practical Approaches. Sustainability 2019, 11, 3731.

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