Determining the land valuation model for peri-urban areas in Central Vietnam

Le Huu Ngoc Thanh; Nguyen Huu Ngu

doi:10.31893/multiscience.2024139

Keywords:

Abstract

The research objective is to build a land valuation model for peri-urban areas in central Vietnam. This was achieved by conducting 200 surveys that examined other factors that influence land prices using a 5-level Likert scale. Then, the Hedonic regression provide novelty in research model was built using SPSS 26.0 software. The research results have given a land pricing model that explains 72.8% of land price fluctuations. This model identifies the main factor causing these fluctuations. These factors include distance to the main road (30.92%), ability to generate cash flow (23.13%), area of the land (16.14%), feng shui (8.14%), location of the land plot (8.00%), width of road attached to the land plot (7.25%), and education level in the area around the land plot (6.44%). This study will illuminate the suitability of the regression model for land valuation in peri-urban regions of Central Vietnam, providing valuable guidance for policymakers, real estate professionals, researchers and the local residents in this field.
References
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31. Nunnally, J. C. (1978). An overview of psychological measurement. Clinical diagnosis of mental disorders: A handbook, 97-146.
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35. Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of political economy, 82(1), 34-55.
36. Savin, N. E., & White, K. (1977). The Durbin-Watson test for serial correlation with extreme sample sizes or many regressors. Journal of the Econometric Society, 1989-1996.
37. Shan, Y., & Nie. (2014). Influencing factors of residential land price in wuhan based on gwr model. Journal of Huazhong Agricultural University, 113(5), 111-118.
38. Shatkin, G. (2016). The real estate turn in policy and planning: Land monetization and the political economy of peri-urbanization in Asia. Cities, 53, 141-149.
39. Tam, C. M., Tso Tony, Y. N., & Lam, K. C. (1999). Feng Shui and Its Impacts on Land and Property Developments. Journal of Urban Planning and Development, 125(4), 152-163. https://doi.org/10.1061/(ASCE)0733-9488(1999)125:4(152)
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41. Tra, H. T. L., Quan, N. V., Tuan, P. A., & Mai, T. T. (2020). Research on residential land prices and factors affecting residential land prices in Chi Linh city, Hai Duong province. Vietnam Journal of Agricultural Sciences, 18(1), 40-51.
42. Trong, H., & Ngoc, C. N. M. (2008). Analyze research data with SPSS-volume 1. In: Hong Duc Publishing House.
43. Zabel, J. (2022). A matching method for land valuation. Journal of Housing Economics, 58, 101878. https://doi.org/https://doi.org/10.1016/j.jhe.2022.101878

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Thanh, L. H. N., & Ngu, N. H. (2024). Determining the land valuation model for peri-urban areas in Central Vietnam. Multidisciplinary Science Journal, 6(8), 2024139. https://doi.org/10.31893/multiscience.2024139

[1] Abdulla, H. M., Ibrahim, M. A., & Al-Hinkawi, W. S. (2023). The Impact of Urban Street Network on Land Value: Correlate Syntactical Premises to the Land Price. Buildings, 13(7), 1610. https://www.mdpi.com/2075-5309/13/7/1610

[2] Anh, T. T., Hung, H., Van, Thi , N. Q., & Anh, N. N. (2016). Researching the major factors that effect to land price at Hoang Van Thu street, Thai Nguyen city, Thai nguyen province. Journal of Science and Technology, 17(193), 111-117.

[3] Bencure, J. C., Tripathi, N. K., Miyazaki, H., Ninsawat, S., & Kim, S. M. (2019). 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, 11(13), 3731. https://www.mdpi.com/2071-1050/11/13/3731

[4] Bencure, J. C., Tripathi, N. K., Miyazaki, H., Ninsawat, S., & Kim, S. M. (2022). Factors affecting decision-making in land valuation process using AHP: a case in the Philippines. International Journal of Housing Markets and Analysis, 15(1), 188-202. https://doi.org/10.1108/IJHMA-11-2020-0136

[5] Binh, T. Q., & Cuong, D. Q. (2020). Application of Exploratory Factor Analysis (EFA) and Analytic Hierarchy Process (AHP) in Valuation of Urban Residential Land in Quoc Oai Town, Quoc Oai District, Hanoi City. VNU Journal of Science: Earth and Environmental Sciences, 36(2). https://doi.org/10.25073/2588-1094/vnuees.4521

[6] Bond, S. (2008). The impact of Feng Shui on residential property prices in Western cultures. International Journal of Housing Markets and Analysis, 1(1), 81-101. https://doi.org/10.1108/17538270810861175

[7] Chandio, I. A., Matori, A.-N., Lawal, D. U., & Sabri, S. (2011). GIS-based land suitability analysis using AHP for public parks planning in Larkana City. Modern applied science, 5(4), 177.

[8] Chau, K. W., & Chin, T. L. (2003). A critical review of literature on the hedonic price model. International Journal for Housing Science and its applications, 27(2), 145-165.

[9] Collins, L. M. (2007). Research Design and Methods. In J. E. Birren (Ed.), Encyclopedia of Gerontology (Second Edition). 433-442. Elsevier. https://doi.org/https://doi.org/10.1016/B0-12-370870-2/00162-1

[10] Committee, H. C. P. s. (2022). Hue city socio-economic report in 2022.

[11] Costello, A. B., & Osborne, J. (2005). Best practices in exploratory factor analysis: Four recommendations for getting the most from your analysis. Practical assessment, research, and evaluation, 10(1), 7.

[12] Cristobal, E., Flavian, C., & Guinaliu, M. (2007). Perceived e‐service quality (PeSQ) measurement validation and effects on consumer satisfaction and web site loyalty. Managing service quality: An international journal, 17(3), 317-340.

[13] Cuong, D. Q. (2023). Determining the optimal land valuation model: A case study of Hanoi, Vietnam. Land Use Policy, 127, 106578. https://doi.org/https://doi.org/10.1016/j.landusepol.2023.106578

[14] Dell'Anna, F., Bottero, M., & Bravi, M. (2021). Geographically Weighted Regression Models to Investigate Urban Infrastructures Impacts. 599-613. https://doi.org/10.1007/978-3-030-87007-2_43

[15] Gilbert, & Stanley W. (2013). Applying the Hedonic Method. US Department of Commerce, National Institute of Standards and Technology.

[16] Glumac, B., Herrera-Gomez, M., & Licheron, J. (2019). A hedonic urban land price index. Land Use Policy, 81, 802-812. https://doi.org/https://doi.org/10.1016/j.landusepol.2018.11.032

[17] Government. (2014). Regulations on land prices.

[18] Green, S. B. (1991). How Many Subjects Does It Take To Do A Regression Analysis. Multivariate Behavioral Research, 26(3), 499-510. https://doi.org/10.1207/s15327906mbr2603_7

[19] Ha, P. T., Tuan, N. T., Van Quan, N., & Van Trung, N. (2022). Land Price Regression Model and Land Value Region Map to Support Residential Land Price Management: A Study in Nghe an Province, Vietnam. Real Estate Management and Valuation, 30(1), 71-83. https://doi.org/doi:10.2478/remav-2022-0007

[20] Hair, J. F. (2009). Multivariate data analysis.

[21] Hair, J. F., & Black, W. (2010). B, J. Babin, and RE Anderson, Multivariate Data Analysis. In: Prentice Hall: New Jersey.

[22] Hui, Z. (2010). Affecting factors research of Beijing residential land price based on GWR model. Economic Geography.

[23] Ingram, G. K., & Kenyon, D. A. (2014). Education, land, and location. Lincoln Institute of Land Policy Cambridge, MA.

[24] Kaiser, H. F. (1974). An index of factorial simplicity. psychometrika, 39(1), 31-36.

[25] Likert. (1932). A technique for the measurement of attitudes.

[26] Malaitham, S., Fukuda, A., Vichiensan, V., & Wasuntarasook, V. (2020). Hedonic pricing model of assessed and market land values: A case study in Bangkok metropolitan area, Thailand. Case Studies on Transport Policy, 8(1), 153-162. https://doi.org/https://doi.org/10.1016/j.cstp.2018.09.008

[27] Merenda, P. F. (1997). Methods, plainly speaking: A guide to the proper use of factor analysis in the conduct and reporting of research: Pitfalls to avoid. Measurement and Evaluation in counseling and Development, 30(3), 156.

[28] Munshi, T. (2020). Accessibility, Infrastructure Provision and Residential Land Value: Modelling the Relation Using Geographic Weighted Regression in the City of Rajkot, India, 12(20), 8615. https://www.mdpi.com/2071-1050/12/20/8615

[29] Nakamura, H. (2019). Relationship among land price, entrepreneurship, the environment, economics, and social factors in the value assessment of Japanese cities. Journal of Cleaner Production, 217, 144-152. https://doi.org/https://doi.org/10.1016/j.jclepro.2019.01.201

[30] Ngu, N. H., & Non, D. Q. (2017). Land Valuation Hue University Publishing House.

[31] Nunnally, J. C. (1978). An overview of psychological measurement. Clinical diagnosis of mental disorders: A handbook, 97-146.

[32] Pham, V.-M., Van Nghiem, S., Van Pham, C., Luu, M. P. T., & Bui, Q.-T. (2021). Urbanization impact on landscape patterns in cultural heritage preservation sites: a case study of the complex of Huế Monuments, Vietnam. Landscape Ecology, 36, 1235-1260.

[33] Phe, H. H., Comber, A., Harris, P., Nguyen, Q., Chi, K., & Tran, H. (2016). Local variation in hedonic house pricing in Hanoi, Vietnam: a spatial analysis of status quality. Issue: International Conference on GIScience Short Paper Proceedings, 1 (1),

[34] Phuong, T. T., Hien, N. T. T., Khue, P. V., Loc, N. D., Trung, N. D., & Son, N. A. (2022). Studying factors affecting land prices in Tu Son city, Bac Ninh province. VNU Journal of Science: Earth and Environmental Sciences, 06(139).

[35] Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of political economy, 82(1), 34-55.

[36] Savin, N. E., & White, K. (1977). The Durbin-Watson test for serial correlation with extreme sample sizes or many regressors. Journal of the Econometric Society, 1989-1996.

[37] Shan, Y., & Nie. (2014). Influencing factors of residential land price in wuhan based on gwr model. Journal of Huazhong Agricultural University, 113(5), 111-118.

[38] Shatkin, G. (2016). The real estate turn in policy and planning: Land monetization and the political economy of peri-urbanization in Asia. Cities, 53, 141-149.

[39] Tam, C. M., Tso Tony, Y. N., & Lam, K. C. (1999). Feng Shui and Its Impacts on Land and Property Developments. Journal of Urban Planning and Development, 125(4), 152-163. https://doi.org/10.1061/(ASCE)0733-9488(1999)125:4(152)

[40] Thu, N. T. M. (2016). Law on land valuation in Vietnam. Ha Noi national university.

[41] Tra, H. T. L., Quan, N. V., Tuan, P. A., & Mai, T. T. (2020). Research on residential land prices and factors affecting residential land prices in Chi Linh city, Hai Duong province. Vietnam Journal of Agricultural Sciences, 18(1), 40-51.

[42] Trong, H., & Ngoc, C. N. M. (2008). Analyze research data with SPSS-volume 1. In: Hong Duc Publishing House.

[43] Zabel, J. (2022). A matching method for land valuation. Journal of Housing Economics, 58, 101878. https://doi.org/https://doi.org/10.1016/j.jhe.2022.101878

Abstract

References

How to cite