Title: Real property valuation decision support system

Authors: Stephen W. Mak, Yvonne Y.T. Liu

Addresses: Department of Buildings and Real Estates, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR. ' Room 904, Core R, Shirley Chan Building, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR

Abstract: This paper describes a project research regarding the use of the Hedonic Price Model (HPM) for mass real property appraisal. This project aims at developing a series of HPM equations for a major Hong Kong real estate surveyor. The main housing estates in Hong Kong are based on historical transaction data and other value-added property attributes. The outcomes meet with the stringent requirement of professional property appraisers in Hong Kong. On top of nominal HPM equation valuation figures, two indices will be used to qualify them to the satisfied valuation. A comprehensive building address database and the equations have been developed for most major Hong Kong housing estates. The system can be adopted by foremost institutions with large property portfolios, so they can evaluate the total capitalisation of their assets on the fly. REIT fund managers may also find it helpful to investors for making more informed decisions.

Keywords: hedonic models; property valuation; economics; decision support systems; Hong Kong.

DOI: 10.1504/IJMDM.2007.012719

International Journal of Management and Decision Making, 2007 Vol.8 No.2/3/4, pp.176 - 189

Published online: 10 Mar 2007 *

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