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Combining Expert Knowledge and Spatial Data in a Single-family House Price Model for Gangnam, Seoul

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초록

The price of a property is a spatial phenomenon that could be predicted using a spatial modeling approach. This study examines the spatial dependence of property price in Gangnam-gu, Seoul, and potential of incorporating expert knowledge into a model when predicting it. A regression-kriging model was used to estimate property prices in the Gangnam area of Seoul. Regression-kriging models are suitable for predicting property prices given that they can be decomposed into two components: one explained by characteristics such as plot size, and the second by spatial dependence. Regression-kriging models incorporate both components. This study is different from previous studies because it integrates specific expert knowledge within a Bayesian framework. We illustrate the benefits of using expert knowledge and spatial dependence in property valuation, which has received relatively little attention when constructing models previously. The results of this study will help property price appraisers and assessors to recognize the potential value of expert knowledge and spatial dependence

Abstract

The price of a property is a spatial phenomenon that could be predicted using a spatial modeling approach. This study examines the spatial dependence of property price in Gangnam-gu, Seoul, and potential of incorporating expert knowledge into a model when predicting it. A regression-kriging model was used to estimate property prices in the Gangnam area of Seoul. Regression-kriging models are suitable for predicting property prices given that they can be decomposed into two components: one explained by characteristics such as plot size, and the second by spatial dependence. Regression-kriging models incorporate both components. This study is different from previous studies because it integrates specific expert knowledge within a Bayesian framework. We illustrate the benefits of using expert knowledge and spatial dependence in property valuation, which has received relatively little attention when constructing models previously. The results of this study will help property price appraisers and assessors to recognize the potential value of expert knowledge and spatial dependence

참고문헌 (42)

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