IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i16p9339-d618002.html
   My bibliography  Save this article

Statistical Modelling of the Market Value of Dwellings, on the Example of the City of Kraków

Author

Listed:
  • Elżbieta Jasińska

    (Department of Integrated Geodesy and Cartography, AGH University of Science and Technology, 30-059 Krakow, Poland)

  • Edward Preweda

    (Department of Integrated Geodesy and Cartography, AGH University of Science and Technology, 30-059 Krakow, Poland)

Abstract

The analysis of a city’s spatial development, in terms of a location that meets the needs of its inhabitants, requires many approaches. The preliminary assessment of the collected material showed that there was real estate in the database whose price did not have market characteristics. For the correct formulation of the valuation model, it is necessary to detect and eliminate or reduce the impact of these properties on the valuation results. In this study, multivariate analysis was used and three methods of detecting outliers were verified. The database of 8812 residential premises traded on the primary market in Kraków was analyzed. In order to detect outliers, the following indices were determined: projection matrix, Mahalanobis distances, standardized chi test and Cook distances. Critical values were calculated based on the formulas proposed in the publication. The probability level was P = 0.95. The article shows that the selected methods of eliminating outliers—the methods of standardized residuals and the Cook’s distance method give similar regression models. Further analysis (with the use of classification tree methods) made it possible to distinguish zones that are homogeneous in terms of price dispersion. In these zones, a set of features influencing real estate prices were determined.

Suggested Citation

  • Elżbieta Jasińska & Edward Preweda, 2021. "Statistical Modelling of the Market Value of Dwellings, on the Example of the City of Kraków," Sustainability, MDPI, vol. 13(16), pages 1-25, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:9339-:d:618002
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/16/9339/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/16/9339/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven C Bourassa & Eva Cantoni & Martin Hoesli, 2016. "Robust hedonic price indexes," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 9(1), pages 47-65, March.
    2. Susanna Levantesi & Gabriella Piscopo, 2020. "The Importance of Economic Variables on London Real Estate Market: A Random Forest Approach," Risks, MDPI, vol. 8(4), pages 1-17, October.
    3. Wójcik-Leń, Justyna & Leń, Przemysław & Mika, Monika & Kryszk, Hubert & Kotlarz, Paweł, 2019. "Studies regarding correct selection of statistical methods for the needs of increasing the efficiency of identification of land for consolidation—A case study in Poland," Land Use Policy, Elsevier, vol. 87(C).
    4. Herath, Shanaka & Maier, Gunther, 2010. "The hedonic price method in real estate and housing market research. A review of the literature," SRE-Discussion Papers 2010/03, WU Vienna University of Economics and Business.
    5. Mok, Henry M K & Chan, Patrick P K & Cho, Yiu-sun, 1995. "A Hedonic Price Model for Private Properties in Hong Kong," The Journal of Real Estate Finance and Economics, Springer, vol. 10(1), pages 37-48, January.
    6. Eunah Jung & Heeyeun Yoon, 2018. "Is Flood Risk Capitalized into Real Estate Market Value? A Mahalanobis-Metric Matching Approach to the Housing Market in Gyeonggi, South Korea," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    7. Ognjen Vukovic, 2015. "Analysing bank real estate portfolio management by using impulse response function, Mahalanobis distance and financial turbulence," Proceedings of Economics and Finance Conferences 2204034, International Institute of Social and Economic Sciences.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elżbieta Jasińska & Edward Preweda & Piotr Łazarz, 2023. "Renewable Energy Sources in the Residential Property Market, Exemplified by the City of Krakow (Poland)," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Pierfrancesco De Paola & Francesco Tajani & Marco Locurcio & Felicia Di Liddo, 2022. "Sustainable Real Estate and Resilient Cities: Management, Assessment and Innovations," Sustainability, MDPI, vol. 14(15), pages 1-9, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bello Musa Zango & Sanni Mohammed Lekan & Mohammed Jibrin Katun, 2020. "Conventional Methods in Housing Market Analysis: A Review of Literature," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 227-241, January.
    2. Damian Przekop, 2022. "Artificial Neural Networks vs Spatial Regression Approach in Property Valuation," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 14(2), pages 199-223, June.
    3. Bator Anne & Hervé Blanchard, 2024. "The housing price index and the number of housing units: a surprising co-movement in France," Economics Bulletin, AccessEcon, vol. 44(1), pages 490-499.
    4. Carlos Pestana Barros & Zhongfei Chen & Luis A. Gil-Alana, 2012. "Housing sales in urban Beijing," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4495-4504, December.
    5. Ming Li & Guojun Zhang & Yunliang Chen & Chunshan Zhou, 2019. "Evaluation of Residential Housing Prices on the Internet: Data Pitfalls," Complexity, Hindawi, vol. 2019, pages 1-15, February.
    6. Chunfang Zhao & Yingliang Wu & Yunfeng Chen & Guohua Chen, 2023. "Multiscale Effects of Hedonic Attributes on Airbnb Listing Prices Based on MGWR: A Case Study of Beijing, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    7. Maurizio d’Amato, 2007. "Comparing Rough Set Theory with Multiple Regression Analysis as Automated Valuation Methodologies," International Real Estate Review, Global Social Science Institute, vol. 10(2), pages 42-65.
    8. Justyna Wójcik-Leń & Przemysław Leń, 2021. "Evaluation of the Symmetry of Statistical Methods Applied for the Identification of Agricultural Areas," Land, MDPI, vol. 10(7), pages 1-13, June.
    9. Wadu Mesthrige Jayantha & Esther Hiu Kwan Yung, 2018. "Effect of Revitalisation of Historic Buildings on Retail Shop Values in Urban Renewal: An Empirical Analysis," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    10. Hill, Robert J. & Trojanek, Radoslaw, 2022. "An evaluation of competing methods for constructing house price indexes: The case of Warsaw," Land Use Policy, Elsevier, vol. 120(C).
    11. Hyung-Gun Kim & Kwong-Chin Hung & Sung Park, 2015. "Determinants of Housing Prices in Hong Kong: A Box-Cox Quantile Regression Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 50(2), pages 270-287, February.
    12. Helen X. H. Bao & Doris Ka Chuen Mok, 2020. "A Link between East and West: How the Guangzhou-Shenzhen-Hong Kong Express Rail Link Affects Property Prices in Hong Kong," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 993-1021.
    13. Saeed Asadi Bagloee & Mitra Heshmati & Madjid Tavana & Debora Di Caprio, 2017. "A logit-based model for measuring the effects of transportation infrastructure on land value," Transportation Planning and Technology, Taylor & Francis Journals, vol. 40(2), pages 143-166, February.
    14. Min Xia & Linyan Wang & Bo Wen & Wei Zou & Weixin Ou & Zhongqiong Qu, 2021. "Land Consolidation Zoning in Coastal Tidal Areas Based on Landscape Security Pattern: A Case Study of Dafeng District, Yancheng, Jiangsu Province, China," Land, MDPI, vol. 10(2), pages 1-13, February.
    15. C.Y. Yiu & S.K. Wong, 2005. "The Effects of Expected Transport Improvements on Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 42(1), pages 113-125, January.
    16. Hyunsoo Kim & Youngwoo Kwon & Yeol Choi, 2020. "Assessing the Impact of Public Rental Housing on the Housing Prices in Proximity: Based on the Regional and Local Level of Price Prediction Models Using Long Short-Term Memory (LSTM)," Sustainability, MDPI, vol. 12(18), pages 1-25, September.
    17. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.
    18. Funke, Michael & Paetz, Michael, 2013. "Housing prices and the business cycle: An empirical application to Hong Kong," Journal of Housing Economics, Elsevier, vol. 22(1), pages 62-76.
    19. Süreyya Özöğür Akyüz & Birsen Eygi Erdogan & Özlem Yıldız & Pınar Karadayı Ataş, 2023. "A Novel Hybrid House Price Prediction Model," Computational Economics, Springer;Society for Computational Economics, vol. 62(3), pages 1215-1232, October.
    20. Bielska, Anna & Stańczuk-Gałwiaczek, Małgorzata & Sobolewska-Mikulska, Katarzyna & Mroczkowski, Robert, 2021. "Implementation of the smart village concept based on selected spatial patterns – A case study of Mazowieckie Voivodeship in Poland," Land Use Policy, Elsevier, vol. 104(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:9339-:d:618002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.