The application of surface generated interpolation models for the prediction of residential property values
| Published date | 01 April 2000 |
| Pages | 162-176 |
| Date | 01 April 2000 |
| DOI | https://doi.org/10.1108/14635780010324321 |
| Author | William J. McCluskey,William G. Deddis,Ian G. Lamont,Richard A. Borst |
| Subject Matter | Property management & built environment |
JPIF
18,2
162
Journal of Property Investment &
Finance, Vol. 18 No. 2, 2000,
pp. 162-176. #MCB University
Press, 1463-578X
CONFERENCE PAPERS
The application of surface
generated interpolation
models for the prediction of
residential property values
William J. McCluskey and William G. Deddis
School of the Built Environment, University of Ulster, Northern Ireland
Ian G. Lamont
Causeway Data Communications, University of Ulster,
Northern Ireland, and
Richard A. Borst
Cole Layer Trumble, Pennsylvania, USA
Keywords Location, ModelIing
Abstract The aim of this paper is to attempt to measure the effect of location on residential
house prices and to endeavour to integrate spatial and aspatial data in terms of developing a
hybrid predictive model. The research methodology investigates the traditional hedonic approach
to modelling location using multiple regression techniques. Alternative approaches are considered
which specifically model the spatial distribution of house prices with the objective of developing
location adjustment factors. These approaches are based on the development of surface response
techniques such as inverse distance weighting and universal kriging. The results generated from
the surfaces created are then calibrated within MRA.
Introduction
Housing is a spatially immobile, highly durable, expensive, multidimensional
heterogeneous commodity. These primary characteristics shape attitudes and
behaviours towards housing and in turn influence neighbourhood
characteristics (Galster, 1996). Spatially no two properties are the same, with
valuers being generally agreed that location is the most important factor
affecting value. The importance of location in real estate is well known. First,
location physically fixes a property in a spatial sense, defining its distance from
such features as transportation, commercial and leisure activities. Second,
where houses within a neighbourhood or sub-market are relatively
homogeneous, location may serve as a proxy for many of the amenities
common to those properties (Gelfand et al., 1998). Spatial immobility means
that location is an intrinsic attribute of a dwelling, which is a direct
determinant of housing quality and market value. Significant differences in
value can occur over short distances. Wyatt (1997) contends that despite
widespread recognition that the location of a property is the primary influence
on value, research that attempts to measure that influence at the intra-urban
The research register for this journal is available at
http://www.mcbup.com/research_registers/jpif.asp
The current issue and full text archive of this journal is available at
http://www.emerald-library.com
To continue reading
Request your trial