DISTANCE AS A DETERMINANT ON PROPERTY PRICE: WILL GIS MAKE A DIFFERENT?

Abstract

The objective of this dissertation is to seek a better distance variable to improve real estate analysis. The distance variable is an important determinant of property price. However, the traditionally used straight-line method does not really reflect the actual distance a commuter has to travel. With the advancement of new technology, GIS (Geographic Information System) can generate a shortest path distance variable that reflects better the actual distance traveled. The author used stepwise regression analysis and found that the GIS-created variable contributed more to the R", and produced a better model for price prediction compared to the traditional distance variable. The author concludes that GIS generated distance variable does make a better determinant of property price compared to the traditional straight-line distance variable.