Factors affecting decision-making in land valuation process using AHP: a case in the Philippines

Abstract

Purpose The research aims to establish importance scheme of geospatial factors for land valuation activities that may serve as an eye-opener and aid the concerned government agencies in drafting land valuation policies and guidelines to achieve a sound land governance and administration. It specifically identifies and weighs geospatial valuation factors to establish their importance. Design/methodology/approach The research involves discussions and survey questionnaires given to land experts (i.e. appraisers, environmental planners, land economist, geodetic engineers and assessors) who indicated their opinions on influence of geospatial factors on land value. The analytic hierarchy process (AHP) is then used to weigh the factors in terms of its importance. Findings The result was then compared with the multiple regression analysis (MRA) taking into consideration the standardized regression coefficient of the 15 factors. The AHP method found out the major road accessibility and slope direction as the most and least influential factors, respectively, while surprisingly MRA found major road accessibility not significant at p < 0.05 level of significance. Research limitations/implications The research generally reflects the sub-urban type of study area; hence, inclusion of other road types such as express ways and subways and performing sensitivity analysis of AHP are suggested in future studies. Practical implications The findings of the study will provide information of concerned government agencies in improving valuation activities, as well as to update values regularly based on the geospatial factors. Originality/value To the best of the authors’ knowledge, this study is the first effort to rank geospatial factors with analytic hierarchy analytic process that further considered both their negative and positive influences on land value. The approach surmounts the flaw and shortcomings of empirical methods of identifying importance of factors.