Computer-based mass appraisal for rural property: a case study in Central Canterbury, New Zealand

Abstract

This thesis considers the applicability of the computer-based mass appraisal techniques of Multiple Regression Analysis and Adaptive Estimation as a means of estimating the rateable value of rural property in New Zealand. Rateable value has been used as the focus of this study. The Valuation of Land Act 1951 requires all property to be valued at not less than five yearly intervals, and accordingly a large number of properties are required to be valued in a short period of time. Given a current move to three-yearly revaluations, the traditional individual appraisal techniques are no longer efficient. Thus computer-based mass appraisal techniques are becoming necessary as a means of efficiently achieving the statutory requirements. In this research, emphasis has been placed on the recognition of the determinants of value of rural property, and on the development of suitable Capital Value and Land Value models for the Central Canterbury region. This study has found that clearly defined highest and best use classifications are the key to successful stratification of the rural property market, and thus to the accurate prediction of rural property values. This study has also recognised that computer-based mass appraisal techniques are not valid in times of structural change, as the mathematical nature of these processes does not allow the all-important informed judgement of the valuer to be replicated sufficiently to cope with the variation in the property market.