scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (2) ◽  
pp. 221-250
Author(s):  
Simon K.C. Cheung ◽  
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Spatial Dependence ◽  
Nearest Neighbor ◽  
Current Model ◽  
Calibration Method ◽  
Residential Real Estate ◽  
The Real Estate ◽  
New Town ◽  
Property Valuation

A special type of spatial dependence model has been developed for the valuation of residential property by using a Bayesian approach which takes into account the unique attributes of Hong Kong property. Inspired by an approach that bases transactions on nearest neighbor estimation, the current model has fine-tuned the spatial dependence method of deriving value from the transactions of the real estate closest in proximity by factoring in differences in structural and auxiliary attributes for more precise property valuation. The model is established on a dataset that covers all residential real estate transactions in a new town in Hong Kong during a given period of time. This model excels other valuation methods with its unique reference to attribute differences, which may impact the valuation results of properties in close vicinity. With this calibration method, we hope to improve the accuracy of real estate appraisals, thus enabling potential homeowners, lenders and investors to make better informed decisions.

scholarly journals International Real Estate Review

2010 ◽  
Vol 13 (1) ◽  
pp. 1-29
Author(s):  
Sam K. Hui ◽  
◽  
Alvin Cheung ◽  
Jimmy Pang ◽  
◽  
...  
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Statistical Method ◽  
Bayesian Approach ◽  
Investment Decisions ◽  
Average Price ◽  
Residential Real Estate ◽  
Property Market ◽  
Residential Properties ◽  
Expert Assessments

We have developed a statistical method for the valuation of residential properties using a hierarchical Bayesian approach, which takes into consideration the unique structure of the Hong Kong property market. Our model is calibrated on a dataset that covers all residential real estate transactions in ten major Hong Kong residential complexes from February 2008 to February 2009. Although parsimonious, our model outperforms other valuation methods that are based on average price-per-square- feet or expert assessments. By providing our model-based valuations online without charge, we hope to improve transparency in the Hong Kong housing market, thus enabling consumers to make better investment decisions.

scholarly journals FOR SALE… BUT FOR HOW LONG? A METHODOLOGICAL PROPOSAL FOR ESTIMATING TIME-ON-THE-MARKET

2015 ◽  
Vol 19 (4) ◽  
pp. 309-324 ◽  
Author(s):  
Vanda C. S. MARTINS ◽  
Marlene N. M. FILIPE ◽  
Fernando A. F. FERREIRA ◽  
Marjan S. JALALI ◽  
Nelson J. S. ANTÓNIO
Keyword(s):  
Real Estate ◽  
Evaluation System ◽  
Socioeconomic Development ◽  
Cognitive Mapping ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
Analytic Hierarchy ◽  
The Real Estate ◽  
Time On The Market ◽  
Measurement Framework

Residential real estate assumes crucial importance in a country's socioeconomic development. It is an important field of study, and much work has gone into better understanding the sector and the factors determining sales within it, such as time-on-the-market (TOM). TOM can be influenced by a variety of elements; a fact that in effect raises a lot of issues, because these determinants are often interpreted in an ambiguous or unstructured way. This study aims to bring greater accuracy and structure to our understanding of these factors, by showing that the integrated use of cognitive mapping with the Analytic Hierarchy Process (AHP) can give rise to a conceptually coherent and empirically valid framework to calculate TOM indices in the residential real estate market. Because it takes into account both tangible and intangible characteristics of a house, this measurement framework also boosts strategic planning support and allows for more informed business planning, which we believe can be a real contribution to the development of the real estate market. The practical implications and limitations of this evaluation system are also discussed.

scholarly journals The Mathematical Model of Forecasting the Price Level in the Regional Market of Residential Real Estate

2019 ◽  
pp. 40-55
Author(s):  
Ekaterina Voronina ◽  
Olga Yarosh ◽  
Natalya Bereza ◽  
Marina Rossinskaya
Keyword(s):  
Mathematical Model ◽  
Real Estate ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
The Real ◽  
The Real Estate ◽  
Goods And Services ◽  
Regional Market ◽  
The Real Estate Market ◽  
Intelligent Data Processing

The purpose of this article is to develop a mathematical model for estimating the value of a real estate object, taking into account the trends in the residential real estate market using indicators of the object’s state and indicators of the real estate market. The real estate market is a complex mechanism that includes subjects, objects, processes and infrastructure. The real estate market has its own characteristics that distinguish it from the market of goods and services related to the duality of real estate, its special characteristics. Despite the high conservatism, there are certain innovative trends in the development of the residential real estate market (innovations in construction, architecture, services and marketing, logistics, customer focus). The article considers the residential real estate market as a complex socio-technical system, to predict the development of which it is advisable to use a combination of classical forecasting methods and soft computing or intelligent data processing methods. A forecast of the development of the residential real estate services market was made using foresight technologies (industry roadmap). The analysis was carried out and the main factors acting on the market were identified, and their influence on the development of market trends was determined. A mathematical model for predicting the value of residential real estate based on the theory of fuzzy sets has been developed.

scholarly journals Assessment of the Property of a Territorial Community: Topical Problems and Ways to Solve them

2021 ◽  
Vol 25 (1) ◽  
pp. 148-152
Author(s):  
Liliia Tymoshchyk ◽  
Keyword(s):  
Real Estate ◽  
Effective Property ◽  
Economic Benefits ◽  
Real Estate Market ◽  
Property Management ◽  
The Real ◽  
The Real Estate ◽  
Property Valuation ◽  
Communal Property ◽  
Municipal Management

Annotation. Introduction. One of the trends in the development of the modern real estate market in Ukraine is the gradual growth of the real estate owners, and, accordingly, the change of the real estate management system, in particular, in the field of municipal management. Real estate, as a strategic asset, needs to be managed at a professional level. Therefore, the mechanism of property valuation of territorial communities is perceived as one of the tools of effective property management. Purpose. The purpose of this article is to find and scientifically substantiate the priority areas for improving the effectiveness of property valuation of territorial communities, and analysis related to the mechanism of evaluation of management aspects – goals, approaches, methods and characteristics. Results. The article analyzes the essence of effective management of municipal property – focuses on management goals, the priority of which is the creation of conditions for normal activities, both for each resident and all in general, analyzes the process of determining the effectiveness of municipal management in various fields and its characteristics, methods of evaluating the effectiveness of management. The main provision that guides real estate activities is that real estate development projects should meet the needs of consumers as much as possible. The views of domestic researcher N. Smentina on approaches to assessing the effectiveness of communal property – economic and social. The article provides a detailed substantive analysis of the concept of “real estate” within the complex development and its spatio-temporal characteristics that affect its value. The importance of the characteristic “optimal use of real estate” is determined. The “optimal use of real estate” reveals the conceptual content of the process of assessing the effectiveness of property use. Conclusions. Summing up, property valuation is especially important in the context of increasing the economic benefits from the sale of communal property, but the mechanism of property valuation of territorial communities in Ukrainian legislation still does not determine some specific aspects of municipal property valuation.. Keywords: property; property management; management efficiency; territorial community.

scholarly journals Extrinsic Factors which Influence the Buying Preferences of Residential Real Estate Customers

2019 ◽  
Vol 8 (S1) ◽  
pp. 64-66
Author(s):  
P. T. Rekha
Keyword(s):  
Real Estate ◽  
Waste Disposal ◽  
Purchase Decision ◽  
Residential Real Estate ◽  
Extrinsic Factors ◽  
Purchasing Decision ◽  
The Real ◽  
The Real Estate ◽  
Factors Influencing ◽  
Survey Questionnaires

A major effort on the part of Real estate firms is to increase and retain their customers and it is very essential that to know the factors influencing customers’ satisfaction and retention. This study is done with the purposes of identifying the extrinsic factors that affect the purchasing decision of the real estate customers of villas and apartments. This study uses survey questionnaires to obtain information from real estate consumers. The study was conducted in Thrissur district. The study found that the most influencing one in extrinsic factors which affect the purchase decision of real estate consumers is the availability of the facility of waste disposal. The study also discuss the opinion of real estate consumers about the changes needed in the structure of flats and villas in the light of natural calamities occurred in Kerala.

scholarly journals Application of the Beta Coefficient in the Market of Direct residential Real Estate Investments

2014 ◽  
Vol 22 (2) ◽  
pp. 13-21 ◽  
Author(s):  
Rafał Wolski
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Formal Structure ◽  
Residential Real Estate ◽  
The Real Estate ◽  
Real Estate Investments ◽  
Beta Coefficient ◽  
Capm Model ◽  
The One ◽  
The Cost

Abstract The beta coefficient is one of the most popular indices used in contemporary finances. Despite the fact that there are justified doubts connected with its application, it is currently difficult to imagine a situation in which the cost of capital would be calculated without the use of the CAPM model. Thus, an attempt at answering the question whether and to what degree beta may be used in the real estate market constitutes an interesting problem. This is because on the one hand, the formal structure suggests that beta should not be used for assets which are not included in the benchmark but, on the other hand, such a benchmark should, at least theoretically, contain all market assets. Therefore, a decision was made to have a closer look at this issue, with the analysis of the possibility of using the beta coefficient in the residential real estate market set as the objective. Using the database of prices in the direct real estate investment created by the NBP, a comparison was conducted with regard to features of undertaken investments on the basis of an analysis of systematic risk calculated using selected indices available on the Polish market.

scholarly journals The Role of Macroprudential Policy in Bank Housing Loans Portfolio Quality Assurance

2021 ◽  
Vol 59 (2) ◽  
pp. 281-296
Author(s):  
Mirela Mitrašević
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
Macroprudential Policy ◽  
Mortgage Loans ◽  
Real Estate Markets ◽  
The Real Estate ◽  
Business Conditions ◽  
Policy Measures ◽  
The Impact

Abstract The subject of this paper is the contemporary trend in residential real estate markets in European countries and their impact on the quality of banks’ housing loan portfolios. Due to the fact that these are the markets that still have not fully recovered from the previous financial crisis, and at the time of writing were exposed to significant uncertainty related to the effects of specific business conditions caused by COVID-19, the research on the risks related to these markets and tools which can mitigate their consequences are of paramount importance. Given the fact that the importance of monitoring the emergence of systemic risks in the financial system and the design of macroprudential tools for Bosnia and Herzegovina is yet to come, one of the aims of the paper is to present the results of the research on the effectiveness of certain macroprudential policy measures for mitigating the impact of price fluctuations in residential real estate markets. A special attention is paid to the challenges that the real estate market and mortgage loans have been facing during the crisis caused by the COVID-19 pandemic. The paper provides a basis for future researches examining to which extent the applied macroprudential policy measures in some countries have been effective in hitherto unprecedented business conditions

scholarly journals VALUATION SYSTEMS IN POLAND, SLOVAKIA AND THE UNITED KINGDOM – COMPARATIVE STUDY

2013 ◽  
Vol 21 (4) ◽  
pp. 75-86
Author(s):  
Marek Walacik ◽  
Richard Grover ◽  
Adamuscin Adamuscin
Keyword(s):  
Real Estate ◽  
Comparative Study ◽  
Real Estate Market ◽  
Market Models ◽  
The Real ◽  
The Real Estate ◽  
Market Values ◽  
Property Valuation ◽  
The United Kingdom ◽  
The Real Estate Market

Abstract The real estate market is a domain of multi-faceted contemplations - ranging from economical, societal and sociological, to juridical aspects. These domains are important because they create an area of real estate (internal and external) and have an impact on the real estate market. The multifariousness of properties has an influence on the creation of market values. Investors and people whose jobs are connected with the real estate market describe it using points, variables and characteristic attributes and on their basis, create algorithms or real estate market models. We need to draw attention to the fact that, in most cases, the terms “features “, “variables”, and “attributes” are treated as the same. The authors of the present article do not agree with that kind of approach and would like to systematize the knowledge in this area. The goal of the article is to explain problematic terms, and indicate their genesis and sense of using them. The paper compares the legal systems of property valuation in three different countries. It describes their different valuation procedures and provides commentary on them.

scholarly journals International Real Estate Review

2000 ◽  
Vol 3 (1) ◽  
pp. 93-108
Author(s):  
Ko Wang ◽  
◽  
Yuqing Zhou ◽  
Su Han Chan ◽  
K. W. Chau ◽  
...  
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Private Information ◽  
Subjective Probabilities ◽  
Rational Model ◽  
Asian Countries ◽  
Real Estate Markets ◽  
The Real Estate ◽  
Industrial Sectors ◽  
The Impact

Studies on the calibration of subjective probabilities find that people tend to over-estimate the precision of their knowledge. In this paper we develop a semi-rational model and apply it to the real estate markets in Hong Kong and other Asian countries. The key point is that a person is rational about her/his private information until her/his private information is confirmed by a clearly defined market signal. Using a pre-sale as a mechanism of updating a developer's beliefs, this paper analyzes the impact of over-confidence on overbuilding and cycles in real estate markets. Our finding indicates that a pre-sale activity will increase the magnitude of over-building and over-confidence will increase the volatility in real estate markets. Our model also has implications to the well-established literature dealing with the issue of over-capacity in many industrial sectors.

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