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A preliminary work towards the development of digital property price modeling

Saksono, Tono and Rosmera, Norshazwani Afiqah (2011) A preliminary work towards the development of digital property price modeling. In: Asian Conference on Real Estate 2011, 3-5 October 2011, Thistle Hotel Johor Bahru, Malaysia.

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Abstract

This is a preliminary study towards the development of a spatial-based digital property price modeling (DPPM) that will be of primary importance as a genuine and comprehensive market guide for investors, industries, financers, brokers, insurance and regulator in real estate industry and market. The study commences with the development of a robust hybrid modeling of all independent social and economic variables to construct stochastic and functional model that determine a property price at specific geographical point. That is in essence a spatial-based econometric modeling. Data used to check the robustness of the model were collected by twenty six senior students in the Department of Real Estate Management, UTHM during students’ mobilization program to Kuching, Sarawak that was partly financed by UTHM. Survey planning and affirmation were conducted using Google Earth during GIS class. Geographical coordinates were recorded by using students’ smart mobile phones that are equipped with mobile GPS navigation system, whilst property characteristics were obtained from brief interview with the property owners. The preliminary results are quite encouraging. The average relative accuracy achieved is about 7% of the average property price within the predetermined window. The results encourage future work to incorporate the use market price from property transaction data available. Based on the constructed model, an estimated price of property at any point of interest can therefore be estimated using the developed DPPM. In addition, the magnitude of real estate industry market, forecast of financial and banking industry and labor work involved, and government’s tax revenue prediction in this sector can be automatically assessed through the developed DPPM.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: spatial-based econometric modeling; digital property price modeling (DPPM)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD101-1396 Land use
Divisions: Faculty of Technology Management and Business > Department of Real Estate Management
Depositing User: Nurul Elmy Mohd. Yusof
Date Deposited: 01 Feb 2012 08:33
Last Modified: 01 Feb 2012 08:33
URI: http://eprints.uthm.edu.my/id/eprint/2354
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