Real Estate Property Research Articles

Qualimetric Assessment of Investment Attractiveness of the Real Estate Property

Abstract In this paper, an algorithm was proposed to define the integral quality coefficient of real estate (on the example of office centers) according to a property tree in the framework of qualimetric modelling. The aim of the paper is an attempt to apply qualimetric methods to evaluate the investment attractiveness of real estate property. When building a qualimetric model, information about the current state of the real estate market was gathered, and a survey of brokers and tenants of office centers was conducted to determine the quality of the selected properties. Scales which were developed to measure simple features of the real estate and evaluate the main price forming factors are presented. The researchers proposed a model that takes into account the most essential characteristics of office real estate to determine rental rates and the rate of return on investment capital.

VOLATILITY SHOCK PERSISTENCE IN INVESTMENT DECISION MAKING: A COMPARISON BETWEEN THE CONSUMER GOODS AND PROPERTY-REAL ESTATE SECTORS OF THE INDONESIAN CAPITAL MARKET

Research about volatility shock persistence is very important, since it could reflect the risks that can be used to estimate the fluctuations of stock returns in the future. This paper investigates a comparison of the volatility shock persistence sectoral indexes between the consumer goods (CONS) and property-real estate (PROP) sectors, using a single index model analyzed using GARCH (Generalized Autoregressive Conditional Heteroscedasticity) and I-GARCH (Integrated-Generalized Autoregressive Conditional Heteroscedasticity). By using index return data from January 2010-December 2015, the research shows that CONS and PROP tend to produce the same results. The CONS and PROP indexes’ responses to volatility shocks tended to be quite fast. Hence, the single index model of the CONS and the PROP indexes can quickly return to its normal stability. It means that, in the presence of certain information which could affect the volatility of the return from these sectors, the market will respond and adapt immediately. This might be attributed to the fact that CONS is a sector that involves fast moving products. Furthermore, the PROP sector has an indirect effect by increasing the real sectoral economic activity and economic growth in Indonesia, which has a large population. Thus, it is recommended that investors who are risk averse and risk neutral should invest in these sectors, because the volatility of both indexes can be monitored based on the existing information.

Association between an individual housing-based socioeconomic index and inconsistent self-reporting of health conditions: a prospective cohort study in the Mayo Clinic Biobank

ObjectiveUsing surveys to collect self-reported information on health and disease is commonly used in clinical practice and epidemiological research. However, the inconsistency of self-reported information collected longitudinally in repeated surveys...

An Intelligent System for Identifying Influential Words in Real-Estate Classifieds

AbstractThis paper focuses on the problem of quantifying how certain words in a text affect, positively or negatively, some numeric signal. These words can lead to important decisions for significant applications such as E-commerce. For example, consider the corpus of real-estate classifieds, which we developed as a case study. Each classified has a description of a real-estate property, along with simple features such as the location and the number of bedrooms. The problem then is to identify which keywords influence the price of the property. Such identification is complicated due to the existence of simple features (numeric and nominal attributes) that also affect the price. In this research, we propose a two-stage regression model to solve this problem. To assess our contribution, we analyze, as a case study, four corpora of real-estate classifieds. The analysis shows that our model predicts the price of a real-estate unit more accurately using the accompanying text, compared to the prediction relying only on simple features. We also demonstrate the capability of our model to annotate (automatically) words that affect the price positively or negatively.

KNOWLEDGE-BASED FIS AND ANFIS MODELS DEVELOPMENT AND COMPARISON FOR RESIDENTIAL REAL ESTATE VALUATION

There has been an increasing concern on the development of alternative approaches to overcome the problems and deficiencies that occur during the application of real-estate valuation methods. This study was established to investigate the usability of the expert knowledge based fuzzy logic methodology in determining real-estates values. In addition, valuation with the Adaptive Neuro-Fuzzy Inference System (ANFIS) method provided model comparison. Samples were administered a questionnaire for the parameters planned for these models regarding the parameters that affect real estate values. To make value estimations for the Fuzzy Inference System (FIS) model by using the parameters obtained from the questionnaire analyses, the criteria that produced the best results were acquired from the various criteria alternatives. An algorithm was created and the valuation process for real estate was performed using the FIS in Konya/Turkey. As a result of poll studies the area, age, floor conditions, physical properties and location of the real-estate property were considered as the input variables and the market value as the output variable. The memberships were established with poll analysis and were rule based on expert knowledge. The model structure was formed by using the Mamdani structure in the MATLAB fuzzy toolbox. Model prediction performance was evaluated statistically with the Mean Absolute Percentage Error (MAPE) and a high accuracy of the model results to the market values indicated the reliability of the established model for residential real-estate valuation.

Historical Real Estate Valuation by Cost Approach

Compared to modern buildings, historical real estate features features that give them a special status: the architectural style of the epoch, the old materials or the built-in building methods, the high rehabilitation costs or the legal restrictions on their intervention. Therefore, in evaluating a historical real estate property, evaluators need to undertake additional, sometimes atypical, steps compared to assessing a modern property. Assessing a historical real estate property by cost has particularities that distinguish it from the assessment of a modern building.

The Application of Spatial Analysis Methods in the Real Estate Market in South‑Eastern Poland

The aim of the article is to apply the method of spatial analysis to research the real estate property market in south‑eastern Poland. The methods of spatial statistics will be used to model the space differences of prices per one square metre of dwelling surface located in districts of south‑eastern Poland and to investigate spatial autocorrelation. The databases will be presented in a graphical form. The results may be used to set the spatial regularities and relations. The methods presented may be applied while making strategic decisions.

Wasting heritage. The slow abandonment of the Italian Historic Centers

Abstract The international debate that led to the drafting of important institutional documents and charters on the city considered the conservation of cultural heritage essential to planning choices and favored the sustainability of the high-density model for historic centers. Italian theory and policy regarding intervention on the historic city provided a major contribution to this debate and the extensive conservation and development policies that emerged benefitted from a general and shared consensus. All the same, analysis of the statistical data on population and real estate in some Italian cities over the last 30 years suggests that the effects of the relationship between these policies and settlement choices should be further questioned. The goal of this paper is to define a precise framework for the dynamics characterizing northern Italian historic centers in the medium and long-term, focusing attention on the use of real estate property and the location choices of families, institutions and enterprises. The results show that historic centers have progressively lost their social and economic attractiveness because of the structural mutations in Italian society and the country's economy. The dense regulatory mechanisms that had matured and were tested over decades of economic and demographic growth no longer appear to hold.

Lessons Learnt from Chinese Housing Development the Case of Affordable Housing and Its Funding

Dated back to the opening up policy, Chinese economy had been rising tremendously, coupled with achievement, though housing challenges across the country greatly arose. Under the traditional planned economy since 1949, entirely housing construction became the State responsibility. As a result of lack of finances, new housing production has not emerged while nation population on rise. Till 1988 when Urban housing reform existed as proposed strategy of affordable housing for the ordinary households through the private housing market. However, the strategy faced numerous obstacles such as lack of sec-ond hands market, an undeveloped real estate profession, indistinct land and property and property regulation plus absence of proper property management support. Amid these obstacles, the lack of housing ?nance would appeared to be a vital problem. Government Introduction of housing provident fund (HPF) scheme in 1991 applied as right measures for curving housing funding problems, under the Housing development fun, all employees required to contribute a percentage of their incomes to housing funding problems and employers contributed a similar amount. individual workers Accounts were opened with Construction Bank of China. Currently workers allowed to withdraw their housing development savings at retirement period, instead their application for their housing development savings as homes purchases in housing market. This has been implemented to the letter in most cities in China, regardless of variations of operational schemes and architectural demands in consideration to geological that varies from locality to another [1]. Applying an experiential research of the housing development savings Scheme in Shanghai as a case research, this paper reviews the role of the HPF in ?nancing affordable housing expansion in most parts of China.

Information Value of Property Description: A Machine Learning Approach

This paper employs machine learning to quantify the value of “soft” information con-tained in real estate property descriptions. Textual descriptions contain information that traditional hedonic attributes cannot capture. A one standard deviation increase in the uniqueness of a property based on this “soft” information leads to a 15% increase in property sale price in a hedonic price model and a 10% increase in a repeat sales price model. The effects in the hedonic model appear to arise through two channels: the unobserved quality of the housing unit, and the market power of the housing unit relative to competing properties. The effects in the repeat sales model appear to be driven entirely by the market power of the unit. Further, an annual hedonic price index ignoring our measure of unobserved quality overstates real estate prices by be-tween 10% to 23% and mistimes the stabilization of housing prices following the Great Recession. Similar, but smaller effects, are observed for the repeat sales price index.

TRANSFORMATION OF OWNERSHIP RIGHTS TO FLATS IN THE HOUSING STOCK MANAGED BY HOUSING COOPERATIVES

Housing cooperatives, operating in Poland for over 120 years, are an important type ofentity on the market of residential real estate properties. The Act on Housing Cooperatives, of 15December 2000, made it possible to transform cooperative rights to flats into separated ownershipby tenants, registered in a Real Estate Register, The resulting changes consist in tenants securingmore legal protection over the right to occupy their dwellings, but also in free turnover, managementand inheritance of owned flats. Until now, 29% of the housing stock has been within housingcooperatives. The article discusses questions of the procedures and te rate of transformation ofcooperative rights to flats into separated onwership rights, as affected by subsequent amendementsto the act. Statistical data were presented that illustrate the course of privatization processes of thehousing stock belonging to housing cooperatives in Poland and in the Province of Warmia andMazury.

PROPERTY AS A SUBJECT OF TAXATION IN THE FRAME OF LAW

Property tax is calculated on the basis of owned property. It is different from most other taxes where the increase in wealth is taxed. The property may consist of, among others, land properties, buildings, enterprises, agricultural real estate or forest properties. Due to such division of property type there are following property taxes: agricultural tax, forest tax, property tax, vehicle tax, and gift and inheritance tax.

Commercial property values in a border metropolitan economy

Real estate property value analysis is used for municipal taxation and budgeting. Commercial properties make up a large percentage of the property tax base in many, if not most, taxing jurisdictions. Data constraints limit the number of analyses conducted on commercial property value patterns. This study employs a fairly extensive data set to address that problem in the context of El Paso, Texas, a large metropolitan economy located on the United States border with Mexico. The sample contains data for 105,611 commercial real estate parcels. Empirical analysis is conducted using geographically weighted regression analysis. Results confirm that parameter estimation for the commercial property data in this sample should be conducted using methodologies that allow for spatial autocorrelation and heteroscedasticity.

Valuation Models for Low-Income Housing: How Does Income Approach Reduce Ambiguity of Assessing Property Tax?

Property tax valuation and assessment for low-income housing remain a challenge for real estate assessors, developers, property managers, and local governments. This paper reported the research findings on the use of valuation methods for real estate tax abatement in low-income properties gathered from real data. Based on data from income statements and balance sheets of client’s properties, valuation models for low-income housing versus market-price housing were proposed and the major variances were compared. From the examination of the major valuation methods used by states and localities, evidence was found to explain: 1) How the fair market value method failed to apply to the tax assessment in Massachusetts that requires a market-price value for property assessment purpose, and 2) why the income approach is preferred in the asset valuation of low-income housing. The findings showed the effectiveness of income approach in the absence of statutory mandates in the State of Massachusetts where a disparate body of case law is used. The paper shined light on valuing real estate encumbered with restrictions for assessment purposes, especially for properties vulnerable to changes in property taxes. It further suggested the need for a legislative resolution for clarity and consistency in valuation of low income housing.

Image-Based Appraisal of Real Estate Properties

Real estate appraisal, which is the process of estimating the price for real estate properties, is crucial for both buys and sellers as the basis for negotiation and transaction. Traditionally, the repeat sales model has been widely adopted to estimate real estate price. However, it depends the design and calculation of a complex economic related index, which is challenging to estimate accurately. Today, real estate brokers provide easy access to detailed online information on real estate properties to their clients. We are interested in estimating the real estate price from these large amounts of easily accessed data. In particular, we analyze the prediction power of online house pictures, which is one of the key factors for online users to make a potential visiting decision. The development of robust computer vision algorithms makes the analysis of visual content possible. In this work, we employ a Recurrent Neural Network (RNN) to predict real estate price using the state-of-the-art visual features. The experimental results indicate that our model outperforms several of other state-of-the-art baseline algorithms in terms of both mean absolute error (MAE) and mean absolute percentage error (MAPE).

Real Estate Appraisal in Central-Eastern Europe: Comparative Analysis of Poland and Slovakia

Abstract The countries in Central-Eastern Europe have been subjected to dynamic economic changes. Researchers from Poland and Slovakia study the history of the creation of and rules by which the real estate appraiser’s profession functions. They also present the methodological basics for property appraisals. The original value of this article is a comparative analysis depicting the similarities and differences occurring in the research area, in two countries from the same region of Europe. The analysis may also influence the methodological discussions of specialists concerning the correctness and purpose of certain approaches, methods or techniques of property appraisal. The main goal of this article is conducting research on the operational rules of the real estate appraiser profession and property appraisal methods. The detailed objectives include: a critical comparative analysis of the solutions used in the above-mentioned countries, searching for interesting, unusual methodological propositions, and presenting a current assessment of the applied property appraisal methodology. The foremost methods used in this article are: the analysis of legislative instruments, the analysis of literature concerning property appraisal methodology in Poland and Slovakia, and a questionnaire (CAWI and PAPI technique). Complementary knowledge was derived from official government internet portals and trade associations dealing with property appraisals. A comparative analysis was the basis for conducting research on the similarities and differences in the studied countries.

Elements in the Market of the Real Estate Property in Oradea

Abstract The location of Oradea in western Romania, in a constant development area, correlates with the existing human potential; the area becomes attractive for citizens from other geographic regions who have moved to Oradea. The real estate market of apartments is experiencing an increase reaching new highs in the trim. II 2017. The city of Oradea is part of the cities with economic potential, with the demand for housing. The prices upward trend must be corelated with economic growth and strength in order not to produce a new “crisis” effect.

Demand for housing choices in the north of France: a discrete approach

PurposeThis research aims to analyse the housing demand in northern France with respect to socio-demographic variables and the distance between the residence and the workplace.Design/methodology/approachEconometrics with discrete choice models are used to study the three main dimensional choices of housing demand: tenure, type and location. A contribution is to use a heteroscedastic logit model where the variance of the error term is allowed to differ over alternatives and to capture in particular the heterogeneity of tastes. As a matter of fact, household characteristics are very likely to influence the magnitude of the scale parameter in the choice of housing alternatives and then influencing the results if it is not taken into account. Applications for housing demand are nearly non-existent. This paper fills this gap.FindingsEconometric estimation confirms that residential choices are influenced by age, income and size of the household, as well as by the rent-to-income ratio. An increase in any of these variables decreases the probability of choices of all the alternatives other than the most often chosen alternative (which is for this application house ownership in the suburb). Moreover, the distance to work systematically influences the housing choice for single-parent families and two-earner households. Additionally, preferences are found to significantly differ between local housing markets, specifically between Lille (a large agglomeration and capital city of the North area) and Dunkerque (an industrialised area). The geographical areas are defined based on INSEE employment zones (“zones d’emplois”).Research limitations/implicationsThis research has been performed for the north of France and may not hold for other areas even though the methodology can be replicated and the mechanisms at play are quite similar elsewhere.Practical implicationsAn important conclusion for sustainable development is the importance to improve city centre amenities relative to those of the suburb or to increase the services associated with high-density dwelling because clearly the most desired alternative remains a house in the suburb. The housing market in the Dunkerque area has some special features characterised by a strong industrial landscape (with port and heavy-duty industrial activities). In this context, amenities provided by the city centre offset the strong attraction of a house in the suburb.Social implicationsThis research shows that households with similar characteristics tend to prefer the same type of real estate property. Therefore, to avoid social segregation, it is important that housing supply respond to different household preferences and needs in the different segments of the housing market. Moreover, the housing supply should take into account the specificities of the geographical areas (both in terms of population who may have a different profile) and in terms of amenities.Originality/valueThis research is one of the very few conducted ones on discrete housing choices in France (with the notable exception of De Palma et al., 2007 for the choice of location). Three simultaneous choices are considered: tenure (including social housing which is almost always ignored), type of building and location. The authors have shown that it is important to take into account the heterogeneity of the preferences in the econometric model with a heteroscedastic logit model.

Effects of bus transit-oriented development (BTOD) on single-family property value in Seattle metropolitan area

Transit-Oriented Development (TOD) is considered to be a powerful model intended to achieve sustainable urban development. A well-designed TOD enhances the accessibility of different kinds of activities, reduces transportation costs and improves the comfort and safety of travel for the neighbourhood as whole, thereby increasing the willingness to pay for real estate properties located nearby. This study examines the housing price premiums of bus transit-oriented development (BTOD), a particular type of TOD that has become quite common in practice, especially in cities where public transportation is provided primarily through a bus system instead of a metro or light rail system. BTOD projects are built at major nodes of a bus network and typically include housing units and commercial services. Our research focuses on four completed BTODs in the Seattle metropolitan area, and employs data on sales prices, physical attributes, neighbourhood characteristics and location features for almost 7000 single-family homes located within a 1.5-mile radius. Using Hedonic price analysis, we find that these BTODs have generated significant positive effects on the values of adjacent homes, especially those located within 0.5 miles. Results from a more sophisticated longitudinal analysis using the data for Renton, one of the BTODs, confirm the price premiums while gaining additional insights about the temporal variations. These findings have an important policy implication, which is especially relevant for cities with an extensive bus transit system: local governments can generate additional tax revenues while advancing sustainability through bus transit-oriented developments.

Deux bases de données, aucune référence de prix

Alors qu’elles partagent la même source d’information initiale, les deux principales bases de données disponibles sur les prix fonciers-immobiliers, Dvf et Perval , présentent de réelles différences du point de vue de leur mode de production, de leur structure et de leur contenu. Les implications de tels écarts doivent être lues du point de vue de leurs potentiels d’exploitation mais aussi de la validité des résultats tirés de ces bases. Cette note de recherche se propose de revenir sur le processus de production des deux bases, sur leur différence de conception et sur les vigilances à prendre en amont de leur utilisation. La démonstration s’appuie sur deux jeux de données disponibles en 2014 pour l’aire urbaine d’Avignon soit 64 communes et la vente de près de 4 500 biens immobiliers.