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A review of property mass valuation models


Citation

Jahanshiri, Ebrahim and Buyong, Taher and Mohamed Shariff, Abdul Rashid (2011) A review of property mass valuation models. Pertanika Journal of Science & Technology, 19 (S). pp. 23-30. ISSN 0128-7680; ESSN: 2231-8526

Abstract / Synopsis

Mass valuation of properties is important for purposes like property tax, price indices construction, and understanding market dynamics. There are several ways that the mass valuation can be carried out. This paper reviews the conventional MRA and several other advanced methods such as SAR, Kriging, GWR, and MWR. SAR and Kriging are good for modeling spatial dependence while GWR and MWR are good for modeling spatial heterogeneity. The difference between SAR and Kriging is the calculation of weights. Kriging weights are based on the spatial dependence or so called the semi-variogram analysis of the price data whereas the weights in SAR are based on the spatial contiguity between the sample data. MWR and GWR are special types of regression where study region is subdivided into local sections to increase the accuracy of prediction through neutralizing the heterogeneity of autocorrelations. MWR assigns equal weights for observations within a window while GWR uses distance decay functions. The merits and drawbacks of each method are discussed.


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Additional Metadata

Item Type: Article
Divisions: Institute of Advanced Technology
Publisher: Universiti Putra Malaysia Press
Keywords: Property price indices; Spatial econometrics; Spatial prediction
Depositing User: Nabilah Mustapa
Date Deposited: 26 Jan 2016 12:05
Last Modified: 26 Jan 2016 12:05
URI: http://psasir.upm.edu.my/id/eprint/18179
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