The Research On Land Value Assessment Of A Land In Honghu City

Land is necessary material for all productions in the development of humansociety as well as rare and irreplaceable resource. The rapid economic growth haswitnessed the flowing of land assets and funds among the states, groups andindividuals, which will inevitably pose a prominent and important issues in the saleand conversion of land assets-land valuation. Land valuation can not only regulate theland market supply and demand and reflect the development of the economy, but alsoadjust the interest relationships among economic entities in land market. However, dueto the immaturity of Chinese land markets, especially those in small towns, landvaluation regulations and land valuation techniques are far from perfection. Therefore,various problems and practical difficulties are emerging in land price assessment,especially in small town land price assessment, which compromises the accuracy andscientificity of assessment results.Based on theories related to land prices and land value evaluation conducted byscholars at home and abroad combined with the current development of land valueassessment of small towns, this paper makes an assessment of the land value of “A”,the commercial land of Honghu City. Analyzing land rights, using conditions and landprice factors of “A”and considering the applicability as well as advantages anddisadvantages of the evaluation methods, the author makes an assessment of the landvalue of “A”by using Modificative Method of Benchmark Land-price Coefficient andIncome Capitalization Approach. Regional factors, individual factors together withvolume ratio factors are modified by Modificative Method of Benchmark Land-priceCoefficient. In correction of volume ratio factors, Eviews7measurement software wasused to calculate scientifically the volume ratio correction factor by using fittingsample price regression equation method to find the functions between the volumeratio and the land price. In the Income Capitalization Approach, estimated rental priceof land was calculated via market comparison law to obtain the net profit of land.Meanwhile, the previous two methods were used collectively to determine the interestrate reduction, which improves the accuracy of the interest rate reduction. On top ofthat, independent assessment of land value of “A”was achieved by virtue of thearithmetic mean of the two methods, providing references and establishing norms tothe small town land value assessment procedures. Finally suggestions on improvement in assessment processes are also provided.