IDENTIFICATION OF FACTORS INFLUENCING LAND VALUE FOR STATE'S ASSETS MASS APPRAISAL PURPOSES: EVIDENCE FROM INDONESIA
DOI:
https://doi.org/10.21837/pm.v19i17.985Keywords:
Land Value, Land Market, Residential Land JEL Code, R330, R210Abstract
Land value is an important element in a decision making. The estimation of land value conducted individually based on comparables. This approach often faces difficulties due to the large quantities of such assets with limited capacity of valuers. This research aimed to build a model to effectively identify the main property attributes that shape property value and quantify the effect of unobserved variables on value. We observed 628 property data in Jakarta collected by the Directorate General of State Asset Management (DGSAM) as part of their valuation activities in 2018. The results of this study provide an evidence that structural equation model (SEM) can be effectively used to identify property attributes that significantly affect property value, particularly for valuing state-owned assets.Downloads
References
Adair, A., Berry, J., & McGreal, S. (1996). Valuation of Residential Property: Analysis of Participant Behaviour. Journal of Property Valuation and Investment, 14(1), 20-35. doi:10.1108/14635789610107453
Benjamin, J., Guttery, R., & Sirmans, C. (2004). Mass appraisal: An introduction to multiple regression analysis for real estate valuation. Journal of Real Estate Practice and Education, 7(1), 65-77.
Eckert, J. K., Gloudemans, R. J., & Almy, R. R. (1990). Property Appraisal and Assessment Administration. Chicago, Ill.: International Association of Assessing Officers.
Fanning, S. F. (2014). Market Analysis for Real Estate: Concepts and Applications in Valuation and Highest and Best Use (2nd ed.): Appraisal Institute.
Freeman, J., & Zhao, X. (2019). An SEM Approach to Modeling Housing Values. Data Analysis and Applications 1: Clustering and Regression, Modeling-estimating, Forecasting and Data Mining, 2, 125-135.
Gallagher, D., Ting, L., & Palmer, A. (2008). A Journey into the Unknown; Taking the Fear Out of Structural Equation Modeling with AMOS for the First-time User. The Marketing Review, 8(3), 255-275.
Gujarati, D. N. (2009). Basic econometrics: Tata McGraw-Hill Education.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2013). Multivariate Data Analysis: Pearson Education Limited.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Los Angeles: SAGE Publications, Inc.
Hair, J. F., Sarstedt, M., Hopkins, L., & Volker, G. K. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM): An Emerging Tool in Business Research. European Business Review, 26(2), 106-121. doi:10.1108/EBR-10-2013-0128
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An Assessment of the Use of Partial Least Squares Structural Equation Modeling in Marketing Research. Journal of the Academy of Marketing Science, 40(3), 414-433.doi:10.1007/s11747-011-0261-6
Jahanshiri, E., Buyong, T., & Shariff, A. R. M. (2011). A review of property mass valuation models. Pertanika Journal of Science & Technology, 19(1), 23-30.
Liu, Y., & Wu, Y. X. (2009). Analysis of Residential Product’s Value Based On Structural Equation Model and Hedonic Price Theory. Paper presented at the 2009 International Conference on Management Science and Engineering.
McCluskey, W. J. (2018). A Critical Review of Computer Assisted Mass Appraisal Techniques. In W. J. McCluskey & A. Adair (Eds.), Computer Assisted Mass Appraisal: An International Review: Taylor & Francis.
Olanrewaju, A. L., Lim, X. Y., Tan, S. Y., Lee, J. E., & Adnan, H. (2018). Factors Affecting Housing Prices in Malaysia: Analysis of the Supply Side. Planning Malaysia, 16(6).
Randeniya, T., Ranasinghe, G., & Amarawickrama, S. (2017). A Model to Estimate the Implicit Values of Housing Attributes by Applying the Hedonic Pricing Method. International Journal of Built Environment and Sustainability, 4(2).
Riley, W. (2018). Mass Appraisals of Condominiums. In W. J. McCluskey & A. Adair (Eds.), Computer Assisted Mass Appraisal: An International Review: Taylor & Francis.
Suhaimi, N. A., Maimun, N. H. A., & Sa'at, N. F. (2021). Does Rail Transport Impact House Prices and Rents? Planning Malaysia, 19(16).
Thanaraju, P., Khan, P. A. M., Juhari, N. H., Sivanathan, S., & Khair, N. M. (2019). Factors Affecting the Housing Preferences of Homebuyers in Kuala Lumpur. Planning Malaysia, 17(9).
Tretton, D. (2007). Where is the world of property valuation for taxation purposes going? Journal of Property Investment & Finance, 25(5), 482-514.
Tukey, J. W. (1977). Exploratory Data Analysis: Addison-Wesley Publishing Company.
Downloads
Published
How to Cite
Issue
Section
License
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.
The authors hold the copyright without restrictions and also retain publishing rights without restrictions.
