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A Longitudinal Study of Land Price Determinants

Author/s: Yosep Cho, Changro Lee

Date Published: 17/12/2025

Published in: Volume 30 - 2025 Issue 3 (pages 153 - 169)

Abstract

The market for land is inherently fluid and constantly changing; this necessitates a land tax assessment system that is amenable to continuous revision and capable of keeping pace with those changes. This study examines temporal changes in land price determinants from a property valuation perspective to enhance land tax policies. Using a mixed-effects model, land lots in Gangwon province, South Korea were longitudinally analyzed over a period of 20 years. The findings reveal increased demand for certain types of land lots, and stable or decreased demand for others. Prices for lots adjoining wide access roads, such as those with 25m and 18m widths, increased by approximately 200%. Similarly, prices for bag-shaped lots surged by roughly 250%. Demand for level and moderate-slope lots also grew stronger compared to steep-slope lots. Conversely, the preference for industrial-use lots decreased with prices declining by approximately 58%. Finally, the price gap between hilly land and forests became nearly negligible. One significant reason for an existing tax assessment system to become outdated is that the local authorities find it hard to identify and measure the gradual changes in land price determinants in the land market. The approach adopted in this study is expected to help local authorities enhance their land tax policies by updating their tax assessment systems in a timely manner, thereby improving horizontal equity in land taxation.

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Keywords

Horizontal Equity - Land Price Determinants - Land Tax Policy - Mixed-Effects Model - South Korea - Tax Assessment System

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