Causal relationship between construction activities, employment and GDP: The case of Hong Kong

Chiang, Yat Hung; Li, Tao; Wong, Fkw

doi:10.1016/j.habitatint.2014.10.016

Cited by 63 publications

(33 citation statements)

References 28 publications

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“…If this happens, it could lead to the questioning of the relevance, as well as the credibility of valuers. At the same time, it could reduce the confidence stakeholders have in the profession (Adegoke et al, 2013), and this will, in turn, affect the performance of the property market and inadvertently the economy of the nation at large, due to the relevance of real estate to the economic development of a nation (Chiang et al, 2015).…”

Section: Property Valuation Accuracymentioning

confidence: 99%

Hedonic Valuation of Real Estate Properties in Nigeria

Abidoye

Chan

2018

JARER

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Despite the wide adoption of the Hedonic Pricing Model (HPM) approach in property valuation in the real estate domain, a large number of studies conducted by real estate scholars, have tended to focus on the 'explanatory' rather than the 'predictive' ability of the technique. Given this industry focus, and thus the lack of information on the predictive nature of HPM, the present study sets out to investigate the predictive accuracy of HPM in property valuation. Data on sales transaction of residential properties were collected from registered property firms practising in the Lagos metropolis property market, in Nigeria. The collected data were divided into two categories-the training set which was fitted to the HPM developed, and the testing dataset which was used for the model validation. Accuracy metrics were used to evaluate the predictive accuracy of the HPM developed. The analysis shows that the HPM approach produced inaccurate predicted property values in terms of a high mean absolute percentage error (MAPE), mean absolute error (MAE) and root means square error (RMSE) which may not be acceptable by rational real estate investors. Also, about 60 % of the predicted property values produced an inaccuracy that is ± 20% of the actual values, while only 26% yielded an error of margin which is within the industry acceptable margin of between ± 0 and 10%. The HPM could not be entirely relied on to produce accurate property valuation estimates. Therefore, further studies are needed to be carried out to identify more reliable and robust property valuation approaches that can produce values that would be acceptable to all property valuation stakeholders.

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Section: Property Valuation Accuracymentioning

confidence: 99%

Hedonic Valuation of Real Estate Properties in Nigeria

Abidoye

Chan

2018

JARER

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“…The inaccuracy of such valuation estimates could cause an adverse effect on the investments of real estate stakeholders, which may eventually affect the economy of a nation, for instance the 2007 global financial crisis (Jiang et al, 2013). Also, several previous studies have demonstrated that the built environment industry is strongly linked to the economy (Chiang et al, 2015). This clearly proves that the accuracy of property valuation estimation is important to all stakeholders.…”

Section: Introductionmentioning

confidence: 96%

Improving property valuation accuracy: a comparison of hedonic pricing model and artificial neural network

Abidoye

Chan

2018

Pacific Rim Property Research Journal

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Inaccuracies in property valuation is a global problem. This could be attributed to the adoption of valuation approaches, with the hedonic pricing model (HPM) being an example, that are inaccurate and unreliable. As evidenced in the literature, the HPM approach has gained wide acceptance among real estate researchers, despite its shortcomings. Therefore, the present study set out to evaluate the predictive accuracy of HPM in comparison with the artificial neural network (ANN) technique in property valuation. Residential property transaction data were collected from registered real estate firms domiciled in the Lagos metropolis, Nigeria, and were fitted into the ANN model and HPM. The results showed that the ANN technique outperformed the HPM approach, in terms of accuracy in predicting property values with mean absolute percentage error (MAPE) values of 15.94 percent and 38.23 percent, respectively. The findings demonstrate the efficacy of the ANN technique in property valuation, and if all the preconditions of property value modeling are met, the ANN technique is a reliable valuation approach that could be used by both real estate researchers and professionals.

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“…A positive relationship between the construction output and the aggregate economic development was initially confirmed in earlier studies (Turin 1969;Drewer 1980). In a subsequent study an inverted U shape explained the relationship between construction output and aggregate economic developments (Bon 1992) with more recent studies confirming that the role of construction changes as economic development increases (see Yiu et al 2004;Ruddock, Lopes 2006;Giang, Pheng 2011;Yorucu 2013;Chiang et al 2015). However it was demonstrated that reliance on the status of aggregate economy is not always a reliable indicator when undertaking a forecast of future construction output (Wong, Ng 2010).…”

Section: Introductionmentioning

confidence: 58%

The Impacts of Residential Construction and Property Prices on Residential Construction Outputs: An Inter-Market Equilibrium Approach

Liu

Reed

2017

International Journal of Strategic Property Management

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Research into the links between construction output and broader economic development has provided valuable references for inducing theoretical, empirical and policy implications. However, the impact of the construction and property markets on the construction output have not been fully addressed yet. This research argues an inter-market equilibrium between residential construction output and the related markets in terms of construction and property prices. Implementing the panel error correction model, longitudinal data of Australian capital cities is used to identify the inter-market equilibrium and associated dynamic patterns across the observed cities. Subsequently, by comparing the simulated and actual residential construction outputs, the estimated findings are evaluated. The inter-market equilibriums in the Australian capital cities appeared in geographic-spatial clusters while the economy-scale-spatial clusters were observed in dynamic patterns.

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Causal relationship between construction activities, employment and GDP: The case of Hong Kong

Cited by 63 publications

References 28 publications

Hedonic Valuation of Real Estate Properties in Nigeria

Hedonic Valuation of Real Estate Properties in Nigeria

Improving property valuation accuracy: a comparison of hedonic pricing model and artificial neural network

The Impacts of Residential Construction and Property Prices on Residential Construction Outputs: An Inter-Market Equilibrium Approach

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