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Spatial Hedonic modelling (SHM) for mass valuation

Ismail, Suriatini and Buyong, Taher and Sipan, Ibrahim @ Atan and Hashim, Mohamad Ghazali and Navaneethan, Renuga (2008) Spatial Hedonic modelling (SHM) for mass valuation. In: International Real Estate Research Symposium (IRERS) 2008 Benchmarking, Innovating and Sustaining Real Estate Market Dynamics, 28-30th April 2008, PWTC Kuala Lumpur, Malaysia. (Unpublished)

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Abstract

The literature has criticized that conventional hedonic model is not capable of taking into account of spatial effects on house prices even with the inclusion of locational variables. In response to this, several advances of multiple regression methods that incorporate spatial dependence have recently emerged. One of the methods is known as spatial hedonic modelling (SHM). There are three common spatial hedonic models namely General Spatial Model (SAC), Spatial Autoregressive Model (SAR) and Spatial Error Model (SEM). The literature has noted that these models are superior compared to the conventional model. This paper presents the preliminary results of a comparison between the performance of the conventional model and the best spatial hedonic model in the prediction of residential property values in Malaysia. The sample comprises 196 residential properties located within the jurisdiction of Majlis Perbandaran Kulai, Johor, Malaysia. Seven independent variables are used to construct both the conventional and spatial hedonic models. The outcomes of this study support the literature in the context of Malaysia.

Item Type:Conference or Workshop Item (Paper)
Uncontrolled Keywords:Spatial dependence, Ordinary Least Square (OLS), spatial regression, mass appraisal
Subjects:G Geography. Anthropology. Recreation > G Geography (General)
T Technology > T Technology (General)
G Geography. Anthropology. Recreation > GA Mathematical geography. Cartography
H Social Sciences > H Social Sciences (General)
H Social Sciences > HA Statistics
Divisions:Geoinformation Science And Engineering (Formerly known)
ID Code:5588
Deposited By: Dr Suriatini Ismail
Deposited On:23 May 2008 09:02
Last Modified:07 Dec 2012 08:16

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