Please use this identifier to cite or link to this item: https://doi.org/10.1080/00420980600990928
Title: Determinants of house price: A decision tree approach
Authors: Fan, G.-Z. 
Ong, S.E. 
Koh, H.C.
Issue Date: 2006
Source: Fan, G.-Z., Ong, S.E., Koh, H.C. (2006). Determinants of house price: A decision tree approach. Urban Studies 43 (12) : 2301-2316. ScholarBank@NUS Repository. https://doi.org/10.1080/00420980600990928
Abstract: The hedonic-based regression approach has been utilised extensively to investigate the relationship between house prices and housing characteristics. However, this approach is subject to criticisms arising from potential problems relating to fundamental model assumptions and estimation such as the identification of supply and demand, market disequilibrium, the selection of independent variables, the choice of functional form of hedonic equation and market segmentation. This study introduces and utilises an alternative approach - the decision tree approach, which is an important statistical pattern recognition tool. Using the Singapore resale public housing market as a case study, the article demonstrates the usefulness of this technique in examining the relationship between house prices and housing characteristics, identifying the significant determinants of housing prices and predicting housing prices. The built tree shows that homebuyers are more concerned about the basic housing characteristics of two- and three-room flats or four-room flats such as floor area, model type and flat age. However, homebuyers of five-room flats pay more attention to floor level in addition to the basic housing characteristics. In addition, homebuyers of executive apartments are less concerned about basic quantitative characteristics and have higher housing consumption expectations and pay more attention to quality and service characteristics such as recreational facilities and the living environment.
Source Title: Urban Studies
URI: http://scholarbank.nus.edu.sg/handle/10635/46117
ISSN: 00420980
DOI: 10.1080/00420980600990928
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

22
checked on Dec 7, 2017

WEB OF SCIENCETM
Citations

16
checked on Nov 29, 2017

Page view(s)

142
checked on Dec 11, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.