Application of Machine Learning Approaches on Real-Time Apartment Prices in the Tokyo Metropolitan Area.

The widely applied hedonic regression approach for the relationship between property prices and housing attributes is subject to assumptions and specifications of models as well as the availability and content of second-hand official data. In a cross-disciplinary spirit, this study employs machine l...

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Publicado en:Social Science Japan Journal Vol. 25; no. 1; pp. 3 - 29
Autores principales: Peng, Ti-Ching, Wang, Chun-Chieh
Formato: Artículo
Publicado: Oxford University Press / USA Winter2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Winter2022
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      pub: Oxford University Press / USA
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        10.1093/ssjj/jyab029
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        atl: Application of Machine Learning Approaches on Real-Time Apartment Prices in the Tokyo Metropolitan Area.
      aug:
        au:
          Peng, Ti-Ching
          Wang, Chun-Chieh
        affil:
          Department of Real Estate and Built Environment at National Taipei University , New Taipei City , Taiwan
          Department of Computer Science at National Chengchi University , Taipei City , Taiwan
      su:
        Japan
        Metropolitan areas
        Machine learning
        Online databases
        Apartments
        Random forest algorithms
      sug:
        subj:
          Metropolitan areas
          Japan
          Machine learning
          Online databases
          Apartments
          Random forest algorithms
      keyword:
        apartment prices
        Hedonic price theory
        machine learning approaches
        online data
        apartment prices
        Hedonic price theory
        machine learning approaches
        online data
      ab: The widely applied hedonic regression approach for the relationship between property prices and housing attributes is subject to assumptions and specifications of models as well as the availability and content of second-hand official data. In a cross-disciplinary spirit, this study employs machine learning techniques to examine hedonic apartment prices in the Tokyo Metropolitan Area of Japan based on online sales data extracted by web-parsing technology. With 14,579 apartment observations, two machine learning regressions—decision tree (DT) and random forest (RF)—are compared to conventional ordinary least squares regression (OLS) for hedonic modelling. Empirical results demonstrated that RF regressions led to the highest accuracy in model prediction performance, followed by DT and OLS. The comparison with results across models revealed that the housing features that have consistent influences on apartment prices tend to be those associated with living quality (including management funds, repair fund fees, floor size, located floor, total floor of the building, and location in Tokyo). Other commonly appreciated features, such as southward orientation or corner-lot location, did not demonstrate importance, possibly due to changes in residents' preferences. In this big-data era, the adaptation of real-time data and machine learning approaches should add value to the variable selection process and model performance.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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