1 / 22

The Improvement of Housing Appraisal Process with Street Block Housing Price Index

The 2010 Eureape Real Estate Society Conference June. 25 th 2010. The Improvement of Housing Appraisal Process with Street Block Housing Price Index. Chung-Hsien Yang National Pingtung Institute of Commerce, Taiwan Szu-Jung Huang

nadda
Download Presentation

The Improvement of Housing Appraisal Process with Street Block Housing Price Index

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The 2010 Eureape Real Estate Society Conference June. 25th 2010 The Improvement of Housing Appraisal Process with Street Block Housing Price Index Chung-Hsien Yang National Pingtung Institute of Commerce, Taiwan Szu-Jung Huang National Pingtung Institute of Commerce, Taiwan

  2. What problems in Mass Appraisal? • Poor attributes • Limited data records and update • Accuracy (still not great) • Limited type (typical only) • Limited Location

  3. What problems in Location? • Traditional location—county / district --Limited identify --Poor accuracy • GIS location—(Xn,Yn) relationship --Poor economics meaning --Sampling orient in location relationship

  4. Solution in this paper • Street Block (SB) Price factor --use the mean price in street block (single or merge street blocks) --Modeling by sorting or comparison the Street Blocks

  5. Advantage in SB solution • Smaller location from traditional • Real and stable location relationship • Clear economics meaning • Easy to judge the location factor and comparison the samples’ relationship

  6. The Data(1/2) • The transaction records of housing from broker in Da-An district/Taipei/Taiwan • 2958 observations in 2006Q1~2008Q3 and 15% of market share in Da_An district • Building type: all is apartment house • Outliers detected (MRA model) and delete • 10% out-sample and 90% in-sample by Quarterly district stratified random sampling

  7. The Data(2/2) We follow Yang and Huang(2009) developed street block price index in Da_An district/Taipei city. We use MRA with street block dummy and 3 years panel data model. There are 47 blocks in the index.

  8. Taipei city (台北市) Taiwan Map MRT : Zhongxiao Fuxing (忠孝復與) MRT:Taipei main station (台北車站) Daan district (大安區)

  9. Daan district (大安區)

  10. Describe the Data of Da-An/ Taipei

  11. The Model • The OLS form (semi-log) P: total price X: attributes of house L: location or street block factors T: Timing dummy variables

  12. 5 models

  13. The Variables • Attributes of house: building area, sq. term; building age, sq. term; xth of floor, sq. term; total floor; building type; land area; MRT distance; car site dummy • Time Dummy var. : 2006Q1~2008Q2=1, 2008Q3=0

  14. Empirical process • Sampling 100 times by quarterly for insample(90%) and outsample(10%) • Run model1~model5 by various insample • Check HitRate(10%, 20% of bias) and MAPE (mean absolute percentage error ) by various outsamples • Test the difference of various models by t test.

  15. Hitrate and MAPE

  16. THE OUTPUT(1/4)(Hit Rate, 10% error)

  17. THE OUTPUT(2/4)(Hit Rate, 20% error)

  18. THE OUTPUT(3/4)(MAPE)

  19. THE OUTPUT(4/4)(MAPE, Hit Rate)

  20. Conclusion • The Street Block Price factors has more quality control and better accuracy than traditional Mass Appraisal. • Both the relationship of street blocks in price and the level of street block price have improved for Mass Appraisal.

  21. Thank You

More Related