Applying a Land Valuation Model Using the Standard Plot Reference Method for Urban Land Valuation: A Case Study of Phung, Dan Phuong, Ha Noi, Vietnam

Abstract

Currently, land valuation is being interested in the process of amending the Land Law in Vietnam. Choosing an appropriate land valuation method is one of the important factors in determining the correct land value. The study conducted experiments with the standard parcel reference method to determine land value based on the land valuation experience in South Korea. The method is applied in Phung town, the economic center of Dan Phuong district, where the real estate market is currently flourishing. In the study area, 13 factors affecting land prices have been identified, as follows: (1) legal status of the land plot; (2) business advantages; (3) transportation; (4) location; (5) frontage; (6) area; (7) shape; (8) technical infrastructure; (9) environment; (10) education, healthcare; (11) security; (12) intellectual level; and (13) Feng Shui. This study selected 209 standard parcels for the mass land valuation of 3,786 land parcels. The obtained results showed that the highest-valued land parcel was 72.5 million VND located on Road 32, and the lowest-valued land parcel was 5.9 million VND placed at House number 4 on Thuy Ung Street. The research findings have been verified through the actual investigation value combined with the opinions of experts. The mass land valuation based on the standard plot reference method will contribute to improving the valuation of residential land in particular and the land valuation in general to meet the demand for issuing land prices close to the current market prices.