The hedonic price model is generally used to estimate the effects of non-market amenities and disamenities on adjacent property values (Rosen, 1974). The source of data on housing prices is an important theoretical consideration to take into account when deciding on the appropriate dependent variable to use for a hedonic price analysis, with data on actual market transactions being preferable, as opposed to assessed values (Kiel & Zabel, 1999; Cotteleer & van Kooten, 2012; Ma & Swinton, 2012). The contribution of this study is to provide a complete analysis and statistically test for differences in parameter estimates obtained from assessed values versus actual sales prices. To achieve this, a Seemingly Unrelated Regression (SUR) hedonic price model consisting of two equations was estimated - one with municipal assessed values as the dependent variable and the other employing actual sales prices as the dependent variable. The resulting parameter estimates were then compared. In order to answer the research question, 170 residential properties in the neighbourhood of Walmer, Nelson Mandela Bay were analysed in terms of the influence of select structural and neighbourhood characteristics on both the sales prices and the assessed values. More specifically, each hedonic equation consisted of nine structural housing characteristics and two neighbourhood characteristics.