A study of land valuation factors by comparing market prices using Analytic Hierarchy Process (AHP)

Abstract

Currently, the valuation of vacant land property uses the market price comparison method as the main valuation method. The weight of the factor was determined according to the score level for data correction. However, the land valuation still lacks the factors to be considered and the appropriate weight. Therefore, the objective of this research was to study and analyze factors affecting the valuation of vacant land. The research examined the importance of factors affecting the value of vacant land. The data collection was conducted using the interviews and a questionnaire of valuation experts to collect data on all major and minor factors. Then, the Analysis was performed using the Analytic Hierarchy Process (AHP) method. The results of this study revealed that the relative weight of the main factors was divided into 4 aspects:  (1) location factor, (2) land potential factor, (3) legal constraint factor and (4) impact factors from external factors. Finally, the researcher suggested a case study on the use of weights of the main criteria and sub-criteria for valuation of land using the market comparison approach as a guideline for further valuation of vacant land.