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Mass Appraisal Modeling of Real Estate in Urban Centers by Geographically and Temporally Weighted Regression: A Case Study of Beijing’s Core Area

Author

Listed:
  • Daikun Wang

    (Department of Geography and Resource Management, The Chinese University of Hong Kong, New Territories 999077, Hong Kong, China)

  • Victor Jing Li

    (Department of Geography and Resource Management, The Chinese University of Hong Kong, New Territories 999077, Hong Kong, China
    Institute of Future Cities, The Chinese University of Hong Kong, New Territories 999077, Hong Kong, China)

  • Huayi Yu

    (Department of Land & Real Estate Management, Renmin University of China, Beijing 100872, China)

Abstract

The traditional linear regression model of mass appraisal is increasingly unable to satisfy the standard of mass appraisal with large data volumes, complex housing characteristics and high accuracy requirements. Therefore, it is essential to utilize the inherent spatial-temporal characteristics of properties to build a more effective and accurate model. In this research, we take Beijing’s core area, a typical urban center, as the study area of modeling for the first time. Thousands of real transaction data sets with a time span of 2014, 2016 and 2018 are conducted at the community level (community annual average price). Three different models, including multiple regression analysis (MRA) with ordinary least squares (OLS), geographically weighted regression (GWR) and geographically and temporally weighted regression (GTWR), are adopted for comparative analysis. The result indicates that the GTWR model, with an adjusted R 2 of 0.8192, performs better in the mass appraisal modeling of real estate. The comparison of different models provides a useful benchmark for policy makers regarding the mass appraisal process of urban centers. The finding also highlights the spatial characteristics of price-related parameters in high-density residential areas, providing an efficient evaluation approach for planning, land management, taxation, insurance, finance and other related fields.

Suggested Citation

  • Daikun Wang & Victor Jing Li & Huayi Yu, 2020. "Mass Appraisal Modeling of Real Estate in Urban Centers by Geographically and Temporally Weighted Regression: A Case Study of Beijing’s Core Area," Land, MDPI, vol. 9(5), pages 1-18, May.
    • Handle: RePEc:gam:jlands:v:9:y:2020:i:5:p:143-:d:355249
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    References listed on IDEAS

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    7. Sisman, S. & Aydinoglu, A.C., 2022. "A modelling approach with geographically weighted regression methods for determining geographic variation and influencing factors in housing price: A case in Istanbul," Land Use Policy, Elsevier, vol. 119(C).

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