The Difference between the Appraisal Price and the Actual Price in Land

Abstract

This study discusses the differences between the appraisal price of land and the land price estimated by actual transaction. A hedonic approach is employed for estimating actual price at the appraisal land at Setagaya City in 2002. It is shown that there exists the differences among those prices. However, it is also found that our hedonic model might omit variables which explain land prices, and that the distributions of the attributes of appraisal data might be different from those of transaction data.