UNIVERSITI TEKNOLOGI MARA (UITM)

CAWANGAN SELANGOR KAMPUS SHAH ALAM

FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING

SESSION 3/2021

RES 511- INVESTMENT APPRAISAL

GROUP ASSIGNMENT

CLASS: AP2253C

PREPARED BY:

BIL NAME MATRIC CARD

1. NURUL AQILAH BT ALUDDIN 2021102081

2. KHAIRUNNISA BINTI MUHAMMAD ASYRAF KISHOR 2021118089

3. ANIS ADIBAH BINTI SAMSURI 2021114709

4. MUHAMAD IZAM ZARUL BIN ABDUL SHUKOR 2021963471

5. MUHAMMAD DANISH HADI BIN NORAFENDI 2021124305

PREPARED FOR:

PROF SR TS DR ABDUL HADI NAWAWI

TABLE OF CONTENTS

1.0 INTRODUCTION.................................................................................................................. 1

2.0 CASE STUDY ...................................................................................................................... 2

2.1 BACKGROUND OF THE CASE STUDY .......................................................................... 2

2.2 CASE STUDY OF PROPERTY IN SETIA ALAM ........................................................... 3-4

3.0 THE MRA TECHNIQUE ....................................................................................................... 5

3.1 MRA FORMULA MODEL ................................................................................................. 5

3.2 INPUT DATA IN SPSS ..................................................................................................... 6

3.3 STEP MULTIPLE REGRESSION PROCESS USING SPSS ......................................... 6-9

4.0 THE PROCESS OF DEVELOPING THE MRA MODEL ......................................................10

4.1 IDENTIFICATION OF VARIABLES............................................................................ 10-14

4.2 THE QUANTIFICATION / CODING OF THE VARIABLES ...............................................15

4.3 ANALYSIS OF THE MRA USING ENTER METHOD ................................................. 16-24

4.4 THE ESTABLISHMENT OF THE MRA MODEL ........................................................ 25-26

5.0 THE STRENGTH AND WEAKNESSES OF THE MRA MODEL ..........................................27

5.1 STRENGTH.....................................................................................................................27

5.2 WEAKNESSES ...............................................................................................................28

6.0 RECOMMENDATION .........................................................................................................29

7.0 CONCLUSION ....................................................................................................................30

8.0 APPENDIX .................................................................................................................... 31-33

9.0 REFERENCES ...................................................................................................................34

1.0 INTRODUCTION

Since Habitat I in 1976, Malaysia's housing provision system has gone through several
phases in order to keep up with the country's political-economic developments and globalisation
as supported by foreign bodies for instance IMF, the World Bank and International Monetary Fund
(Shuid, 2015). Since its independence in 1957, Malaysia had achieved remarkable progress in
addressing significant housing shortages, poor housing, and slums in metropolitan areas (Shuid,
2015). Housing was assessed based on its characteristics and condition, as well as these
characteristics are the structure, location, and neighbourhood circumstances. These elements are
not examined as direct indicators of housing values. As a result, determining one's quality of life
should be simpler. These are key factors to examine since their influence on property values can
be quantified. The result of these condition is a collection of three indicators and established
measuring methods or approaches can be examined. These requirements must be capable of
measuring the traits considered required for the elements influencing housing values. (Masri,
Nawawi, & Sipan, 2016). When all this can affect the price of a house, then it can affect the rental
rate of a house as well.

Setia Alam has been chosen as the location for research on house rental rates. Developed
a Multiple Regression Analysis (MRA) model that can predict the rental of residential in Setia
Alam based on physical factors. Based on the case study in the Setia Alam, due to the scarcity
of residential land, a growing number of residential homes are being erected near cemeteries
(Vern, et al., 2020). Cemeteries are seen differently by different races and religions, which
influences their decision to acquire surrounding homes. The cemetery may affect the surrounding
area, including local houses, in both positive and bad ways (Vern, et al., 2020). The cemetery's
influence on the neighbouring housing area is low provided with the housing is strategically
located. Furthermore, some individuals don't mind that the housing is near a graveyard. Such
people will purchase a home near the cemetery if it is inexpensive, or even affordable, than
comparable housing elsewhere. The area that has been chosen is where the residential property
market has provided many comparable data such as security available, types of design, and
accessibility to develop the model. By using the MRA Model as well as a total of 40 houses were
taken as comparable to find out the rental rate in the house.

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2.0 CASE STUDY

2.1 BACKGROUND OF THE CASE STUDY

The case study for the Multiple Regression Analysis (MRA) was conducted in Setia
Wawasan, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor. Setia Alam is a township for
Shah Alam, Selangor. It is accessible via Setia Alam Highway. Setia Alam is an integrated
development spanning over 4,000 acres (16km²). Setia Alam falls under the jurisdiction of the
Shah Alam Council (MBSA).

Figure 1 shows the location of the case study.

The property that we have chosen are in Setia Wawasan Seksyen U13, Setia Alam, Shah
Alam, Selangor. The reason we chose the property is that the property has an aesthetic building.
This property is a double-story terrace home that is easily accessible via Jalan Persiaran Setia
Utama. The location is also strategic because near Setia City Mall. Setia City malls are the main
attraction and entertainment centres such as cinema, Molly Fantasy, Future Land Fun Zone and
Family Karaoke. Setia City Mall also serves Malaysian and Korean food restaurants. In addition,
near Setia City Mall there was a park, with over 10.5 acres of beautifully landscaped park life.

We are choosing Taman Anggun located at Setia Wawasan, Seksyen U13, Setia Alam
because the property is unique, and the building of the property has variable choices to investigate
using the Multiple Regression Analysis (MRA) technique. This location is advantageous because
it is only 3.5 kilometres from Setia City Mall. The biggest attraction of Setia Alam is Setia City
Mall. Setia City Mall is served urban lifestyle shopping mall for the people who are living in Setia
Alam.

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 Figure 2 shows the distance between

Next, to get the value of the dependent variable, that is the rent of the property in Setia
Alam there are multiple factors that we have chosen as the independent variable. The factors that
we chose as independent variables are types of gates, renovation made to the property, security
available, types of design, the places of the lot, accommodate type, parking bay, neighbourhood
facilities such as a playground, football field and others, house orientation, accessibility, location,
state of repair, indoor facilities, and extended house. The case study has been conducted at the
site visit and forty (40) houses of the data have been collected.

2.2 CASE STUDY OF PROPERTY IN SETIA ALAM

Figure 3 shows the case study that has been founded in the area of Setia Alam.

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 Since Malaysia reached upper-middle-income status and is now highly urbanized with the
depopulation of rural areas, this situation will reduce the amount of land available in cities with a
highly urbanized Malaysian population and increase house prices in the coming years. Some
increasingly limited urban lands need to be gazetted for cemeteries in Malaysia. The cemetery is
an increasingly important land use due to higher demand due to Malaysia’s growing population.
Furthermore, housing prices will be much higher in well-developed residential areas since they
are more attractive to residents. Factors to be compared to cemetery view as amenities could
affect housing demand, such as facilities, floor area, property ageing, and housing prices. The
findings showed that the housing area near cemeteries has a less negative impact on more
expensive housing units (Vern, et al., 2020).

Moreover, there will be a less negative impact on housing near cemeteries if the housing
area is near downtown. The satisfaction of communities with accommodation in proximity to
cemeteries will increase the number of housing areas in proximity to cemeteries. There is less
impact in terms of economics and housing demands on nearby neighbourhoods if property buyers
are satisfied with the cemetery as a peaceful place. The land scarcity in Malaysia promotes the
residential area built near cemeteries. Generally, it seems problematic to the resident and
property developers in terms of demand and supply for the property. Besides that, some issues
may arise and impact the neighbourhood regarding economics, the environment, health,
emotions, and society. However, many respondents can accept housing near the cemetery. Even
if cemeteries affect nearby accommodation negatively, it is not a significant factor influencing
housing demand.

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3.0 THE MRA TECHNIQUE

Multiple Regression Analysis (MRA) is a statistical tool to help make a prediction and also
a tool to help decision-making in the future. MRA technique can be used to analyze the
relationship between a single dependent variable and multiple independent variables. The value
of the single dependent variable can be calculated using the value of several independent
variables. The MRA model must be constructed to predict the variable. This model must be
presented as an equation.

3.1 MRA FORMULA MODEL

Below is the equation of the MRA model:

Y = β0 + β1x1 + β2x2 + β3x3 + β4x4 + ….βnxn

Where,

Y = dependent variable

β0 = constant

β1, β2, β3 = coefficients independent variable

x1, x2, x3 = independent variable

In this research, we have collected data to get the analysis result. There are multiple
independent variables such as types of gates, renovation, security available, types of design,
intermediate, end lot, corner lot, accommodate type, parking bay, neighbourhood facilities, house
orientation, accessibility, location, state of repair, indoor facilities, and extended house to find the
dependent variable that is the value of rent house.

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3.2 INPUT DATA IN SPSS

The data that we have collected on-site have been put into SPSS data analysis software to be
analysed. We have collected data from forty (40) houses in Setia Alam, hence the data will be
key to SPSS data analysis. SPSS data analysis will calculate the dependent variable, the value
of rent using the independent variable that has been collected. It will be calculated automatically
using the software. Below is the step on how we key in the data.

3.3 STEP MULTIPLE REGRESSION PROCESS USING SPSS

1. Input Data Variable

First and foremost, key in the data that have been collected from the site. The SPSS must
be begun from the start. The independent variable that we choose are a lot, address,
rental, land area, built-up area, types of gates, renovation made, security, the design of
the property, place of the property, accommodate, parking bay, neighbourhood facilities,
orientation, location, state of repair, facilities and extended made in the house.

Figure 4 shows the variable data that have been collected

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2. Data View
Next, we must look at the data using bivariate to make sure the data that we have collected
does not have a problem. The data need to be looking in the Pearson correlation column.

Figure 5 shows the Pearson correlation result

3. Entered method
The rental must be put in the dependent variable, and the independent variable is the rest
of the data. The enter method is the manual of the data that we need to calculate the
result. Enter method is more effective than the stepwise method.

Figure 6 shows enter method.

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4. The result of the enter method shows the independent variable that we need to use to
calculate the MRA prediction of the value of the rental.

Figure 7 shows the value of t that more than two shall be repeated with the enter method.

5. The Result Analyses

In the result above the t value that more than two (2) is the type of design, end lot, corner
lot and extended house. This independent variable needs to repeat the enter method to
get the value of Beta (β) and the value of t. The enter method is used to get the coefficient
of the variable in the data manually. Coefficients result contain the value of unstandardized
B, coefficients standard error, standardized coefficients Beta, t value and significance.

8
6. Summary
For the summary, we can see the difference between the entering method and the
stepwise method. For the result of the standard error, R square, Adjusted R square,
ANOVA for the value of F, t value, and the variable in the enter method and stepwise
method.

Enter Method Stepwise

Method
Standard error 39.098 15.661
R Square 0.985 0.998

Adj. R Square 0.984 0.997

ANOVA F 591.1417 (>4) 2985.581 (>4)
t value >2 >2

Constant 283.608 ß = 3469.931 26.318 ß = 5080.670

Type of Design 3.026 ß2 = 31.106 2.305 ß2 = 10.139
End lot 9.684 ß3 = 208.410 12.984 ß3 = 2251.346
Corner lot 47.994 ß4 = 998.963
Extended -0.571 ß5 = -16.590 4.319 ß4 = 55.257
house

Land sqm 20.019 ß5 = 18.447

Built-up sqm -13.570 ß6 = -30.332

Table 1 shows the differences of data between enter method and stepwise method.

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4.0 THE PROCESS OF DEVELOPING THE MRA MODEL

4.1 IDENTIFICATION OF VARIABLES

Numerous factors can be compared between the terrace house and other houses.
Independent Variables include Land Area, Built-up Area, Types of Gates, Renovation Completed,
Availability of Security, Types of Design, Type of House Lot (Corner lot/End lot/Intermediate lot),
Accessibility from the Main Entrance, Accommodation, Parking Bay, Neighbourhood Facilities,
House Orientation, Location, Maintenance Management, Indoor Facilities, and Extended Area.
The only dependent variable in the case study is Rental.

1. Land Area
Land Area is one of the variables for terrace houses. Land area is chosen as one of the
study's independent variables since differences in land area among lot types are
substantial. Land area is the square meter or square foot area of the land-based portions
of a property's total area, including the backyard, up to the property boundaries (property
line). Land Area may be measured through quantitative as the data can be measured
directly. Hence, it can be defined as a quantitative independent variable.

2. Built-up Area
Built-up area is another variable that can be measured for terrace houses. A built-up area
is an area, typically measured in square feet or square meters, that a building or portion
of a building occupies, including the sizes of all storeys. This is since each terrace house
has a different built-up area based on the type of its lot. Due to the observable differences
in the built-up area, it is selected as one of the independent variables for the terrace house.
The built-up area can be measured quantitatively, as the data can be directly measured.

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3. Types of Gates
One of the variables that can be used to compare terrace houses is the types of gates that
provide residents security. Better entrance gates serve the primary purpose of keeping
intruders out of your home. There are numerous options available, including sliding gates
and automatic gate systems. One of the reasons why a house will rent for more than a
comparable home with the original standard gates is that the entrance gate must be
reliably secured and provide easy access control. A qualitative method employing a
dummy scale will be used to identify this variable, with 0 representing homes with Standard
gates, 1 representing homes with automatic gates, and 2 representing sliding gates.

4. Renovation Completed & Extended Area

Other than that, renovations also can significantly increase the amount of rental rate on
the property. Renovation can also improve the equity in the real estate investment and
ensure better rental yield in the market. An extended area whether for a kitchen, bathroom
or bedroom will significantly impact the value of the property. A qualitative measurement
will be used to identify renovated houses, with 1 indicating renovated houses and 0
indicating houses that have not been renovated.

5. Availability of Security
Availability of Security is defined by security installed on the house. Primary security
systems such as intrusion alarms, CCTV, and others strengthen the reliability of a
residence. House with a better security system could also increase the value of the
property to adhere to comfort and safety. The exact qualitative measurement will be used
to determine the Availability of Security, with 1 indicating a home with a security system
and 0 indicating a home without one.

6. Types of Design
Another variable is the types or designs of the house. This is because the types of design
for the house are not identical, with some houses retaining the standard design and others
adopting a different design, depending on the unit. Design is one of the crucial factors that
will significantly impact the rental yield and overall value of a property. A qualitative method
will be employed to evaluate the Types of Design because it is subjective. Using a dummy
scale, 0 will represent houses with the standard design, 1 will represent houses with
moderate design, and 2 will represent houses with the best design.

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7. Type of House Lot
The location of the House Lot figured prominently as one of the variables. The location of
a home in a specific neighbourhood or development is crucial, as the cost of different lot
locations varies. In real estate, a lot or plot is a tract or parcel of land owned or meant to
be owned by some owner(s). The three types of House Lot consist of a corner lot, an
intermediate lot, and an end lot. By identifying the type of lot, it is possible to predict the
rent range for each lot, thereby making this variable an independent variable. To
determine the location of each lot, a qualitative method utilising dummy scales for the
intermediate, end, and corner lots will be utilised. Yes, is represented by 1, while no is
represented by 0 respectively on the lot type.

8. Accessibility from the Main Entrance

Correspondingly, Accessibility from the Main Entrance is among the variables. It
made residents easily reach and access their homes due to their proximity to the
entrance. The best location for a house would be near the main entrance, as it is more
secure and recognisable. Due to the strategic location, their rental rates will increase and
become more expensive than the house far from the main entrance. This demonstrates
that Accessibility from the Main Entrance is an independent variable that will be measured
qualitatively using a dummy scale. 1 will indicate a house that is easy to access, while 0
will indicate a house that isn't easy to access.

9. Accommodation
Accommodation is one of the variables for the terrace house, as accommodation refers to
any improved or unimproved real property, or part thereof, which is used or occupied or is
intended, arranged, or designed to be used or occupied. Simply, it is an upgrade of
renovation or partitioning intended as a room or living space for a person to reside or stay.
Hence, accommodation is a vital independent variable that could influence the rental price.
The accommodation will be evaluated using a qualitative dummy scale. Thus, 0 indicates
a house with basic standard accommodation, and 1 indicates a house with improvements
made for accommodation.

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10. Parking Bay
The space for a parking bay is essential as a variable as each unit is only allotted two
ample parking spaces. It will be inconvenient for owners or tenants who have more than
two cars because there is no outside parking space if the house faces the neighbour.
Consequently, this will be an advantage for residents with parking spaces opposite their
homes. Thus, parking space availability is an independent variable. A qualitative
measurement based on a dummy scale will be utilised, with 0 representing homes with no
extra parking spaces and 1 representing homes with extra parking spaces.

11. Neighbourhood Facilities

Furthermore, neighbourhood facilities are one of the emphasised variables. Recreational,
educational, and other communal facilities are essential for a desirable neighbourhood.
These were also supported by the residents' demand for and supply of services and
amenities such as playgrounds, communal spaces, and mosques. It is designated as the
independent variable because it affects the rental rate. A qualitative measurement will be
used, with 0 representing homes far from facilities and 1 representing homes close to
facilities.

12. House Orientation

House orientation refers to the placement of a house or building concerning its
surroundings. The orientation of a home is crucial for its placement and is even a factor in
Chinese Feng Shui. Moreover, house orientation influences the value of a property, from
the sun orientation to an orientation facing a beautiful view. House Orientation is an
independent variable that is thought to influence rental rates. This variable will be identified
using a qualitative method using a dummy scale, with 0 representing a house-facing
neighbour, 1 representing a house-facing main road, and 2 representing a house-facing
great view.

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13. Location
The location of the property plays a key role in determining the rent, as each location will
require a different amount of the rent. The total value of a property is comprised of the
value of the land and the house. The property's location is an immutable factor in this
calculation and is therefore of the utmost importance. Consequently, by identifying the
location of the house, it will be possible to predict the rent range for each location, thereby
making this variable an independent variable. A qualitative method consists of a dummy
scale for each location, with 0 representing houses far from the city centre and 1
representing houses near the city centre.

14. State of repair

State of repair is an additional variable included as the independent variable. To evaluate
the State of repair, we can observe the condition of the homes and much more based on
State of repair. This is due to the fact that a house in better exterior and interior condition
will provide more comfort and aesthetic appeal to its inhabitants. By improving the state
of repair, the rental value will increase. Therefore, the condition of the home is an
independent variable because it affects the property's rental rate. To identify the state of
repair, a qualitative measurement will be used, with 1 indicating well-maintained houses
and 0 indicating houses with no maintenance.

15. Indoor Facilities

Last but not least, indoor facilities are also one of the significant factors as a variable.
Indoor facilities such as air conditioners, open-air verandas, and others would enhance
the comfort of occupants. Since not every house was installed with an air conditioner, it is
believed that the significance of having an air conditioner is deemed to be an independent
variable. Using a dummy scale, 0 will represent homes without air conditioning, while 1
will represent homes with air conditioning.

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4.2 THE QUANTIFICATION / CODING OF THE VARIABLES

NO INDEPENDENT VARIABLE MEASUREMENT SCALE/VALUES

1 Lot Number Nominal None
2 Address Nominal None
3 Land Area (Sqm) Scale None
4 Built-Up Area (Sqm) Scale None
Types of Gates Ordinal 0 - Standard Gates
5 1 - Automatic Gates
2 - Sliding Gates
Renovation Ordinal 0 - No Renovation
6
1 - Has Renovation
Security Available Ordinal 0- No Security
7
1 - Has Security
Types of Design Ordinal 0 - No Design
8 1 - Moderate Design
2 - Best Design
Intermediate Ordinal 0 - Not Intermediate
9
1 - Intermediate
End Lot Ordinal 0 - Not End Lot
10
1 - End Lot
Corner Lot Ordinal 0 - Not Corner Lot
11
1 - Corner Lot
Accommodation Ordinal 0 - Basic
12
1 - Improvement
Parking Bay Ordinal 0 - No Parking Bay
13
1 - Has Parking Bay
Neighbourhood Facilities Ordinal 0 - Far from Facilities
14
1 - Near From Facilities
House Orientation Ordinal 0 - Facing Neighbour
15 1 - Facing Main Road
2 - Facing Great View
Accessibility Ordinal 0 - Not Easy to Access
16
1 - Easy to Access

15
 Location Ordinal 0 - Far from City Centre
17
1 - Near to City Centre
State of repair 0 - No Maintenance
18 Nominal
1 - Has Maintenance
Indoor Facilities 0 - No Air-Conditioner
19 Nominal
1 - Has Air-Conditioner
Extended House 0 - No Extended
20 Nominal
1 - Has Extended

Table 2 shows independent variables.

4.3 ANALYSIS OF THE MRA USING ENTER METHOD

The enter method is a variable selection approach in which all variables in a block are
entered at the same time. To develop the MRA Model based on the existing data collected, we
are utilising the multiple regression linear method by entering all of the collected data into SPSS
software to generate data. Using the Enter Method for the MRA Model, the rental price serves as
the dependent variable, while Extended Area, Security Available and others as the independent
variables. As is typical in theory development, the model makes no assumptions about which of
these variables is more important than the others.

REGRESSION TEST 1

1. Variables Entered/Removed

Variables Entered/Removed

Variables
Model Variables Entered Removed Method

1 Extended House, Security Available, Types of . Enter

Gates, Accommodate Type, End Lot, Parking Bay,
Indoor Facilities, Corner Lot, Renovation done,
Neighbourhood Facilities, Type of Design, State of
Repair, Location, Accessibility, House Orientationb

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a. Dependent Variable: Rental

b. Tolerance = .000 limit reached.

Table 3 displays the variables for Enter Method.

2. Model Summary

Model Summary

Adjusted R
Model R R Square Square Std. Error of the Estimate

1 .990a .980 .968 55.152

a. Predictors: (Constant), Extended House, Security Available, Types of Gates, Accomodate

Type, End Lot, Parking Bay, Indoor Facilities, Corner Lot, Renovation done, Neighbourhood
Facilities, Type of Design, State of Repair, Location, Accessibility, House Orientation

Table 4 shows the model summary of Enter Method.

From the data derived from the model summary, the R Square obtained from the model summary
is over 0.6 which is 0.980 and the Adjusted R Square of 0.968. Standard Error of Estimate (SEE)
is 55.152 which is relevant to be used for MRA Model.

3. ANOVA

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 3620747.587 15 241383.172 79.356 .000b

Residual 73002.413 24 3041.767

Total 3693750.000 39

a. Dependent Variable: Rental

b. Predictors: (Constant), Extended House, Security Available, Types of Gates, Accomodate

Type, End Lot, Parking Bay, Indoor Facilities, Corner Lot, Renovation done, Neighbourhood
Facilities, Type of Design, State of Repair, Location, Accessibility, House Orientation

Table 5 shows the ANOVA result of Enter Method.

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Table 3 above shows that the F value from ANOVA is 79.356. The ANOVA value of F is above
4.0 which is acceptable to be used for the MRA model.

4. Coefficients

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3488.572 43.499 80.200 .000

Types of Gates -4.801 15.254 -.011 -.315 .756

Renovation done 25.144 28.739 .041 .875 .390

Security Available -27.586 21.119 -.045 -1.306 .204

Type of Design -.173 20.796 .000 -.008 .993

End Lot 292.756 38.824 .289 7.541 .000

Corner Lot 998.369 40.245 .986 24.808 .000

Accomodate Type -18.840 29.323 -.022 -.643 .527

Parking Bay 7.912 130.707 .013 .061 .952

Neighbourhood 16.254 62.466 .026 .260 .797

Facilities

House Orientation 7.424 65.788 .024 .113 .911

Accessibility -25.955 88.455 -.042 -.293 .772

Location 16.305 77.098 .026 .211 .834

State of Repair 4.816 33.992 .008 .142 .889

Indoor Facilities 20.342 30.562 .033 .666 .512

Extended House -22.421 55.084 -.016 -.407 .688

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a. Dependent Variable: Rental

Table 6 displays the Coefficients result of Enter Method.

From this, we can analyse the t value from this method (80.200) and the value B for
unstandardized coefficients (3488.572). We also can determine the independent variable that has
a t value higher than 2.000. From the table above, we can see the independent variable, which is
the end lot and the corner lot has a t value higher than 2.000.

REGRESSION TEST 2

Next, the regression test of Enter Method is run again and takes out the variable in which the t
value is more than 2. From the data generated, two significant independents have chosen corner
lot and end lot where the ‘t’ value exceeds 2.0. The rental will remain the dependent variable. The
data chosen will be rerun to a determined more accurate value.

1. Variables Entered/Removed

Variables Entered/Removeda

Model Variables Entered Variables Removed Method

1 Corner Lot, End Lotb . Enter

a. Dependent Variable: Rental

b. All requested variables entered.

Table 5 displays the chosen variables for Enter Method after the rerun.

2. Model Summary

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .988a .976 .975 48.543

a. Predictors: (Constant), Corner Lot, End Lot

Table 7 shows the model summary of Enter Method after the rerun.

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The data of the model summary from the rerun data generated shown, the R Square obtained
from the model summary is over 0.6 that is 0. 976 and the Adjusted R Square of 0. 975 which is
still above 0.6 value that can be used to generate MRA Model with the Standard Error of the
Estimate (SEE) of 48.543.

3. ANOVA

ANOVAa

Sum of
Model Squares df Mean Square F Sig.

1 Regression 3606562.500 2 1803281.250 765.26 .000b

3

Residual 87187.500 37 2356.419

Total 3693750.000 39

a. Dependent Variable: Rental

b. Predictors: (Constant), Corner Lot, End Lot

Table 8 shows the ANOVA result of Enter Method after the rerun.

After the rerun with the chosen data, it shows that the F value from ANOVA is 765.263. The
ANOVA value of F is above 4.0 which is acceptable to be used for the MRA model.

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 4. Coefficients

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3509.375 8.581 408.958 .000

End Lot 290.625 25.744 .287 11.289 .000

Corner Lot 990.625 25.744 .978 38.480 .000

a. Dependent Variable: Rental

Table 9 displays the Coefficients result of Enter Method after the rerun.

From this, we can analyse the t value from this method (408.958) and the value B for
unstandardized coefficients (3509.375). Unstandardized Coefficient will be used on the MRA
Model as the Beta.

HISTOGRAM

Figure 8 display the frequency of rental.

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The SPSS software results indicate a histogram graph of the frequency of rental. The highest
rental rate for a house in Setia Alam is RM3500, followed by RM4500 and RM3800. From Figure
1, the histogram result is not a perfect curve but shows positive normality. A positively skewed
histogram suggests the mean is greater than the median. More of the data is towards the left-
hand side of the distribution, with a few large values to the right.

SCATTER PLOT

Figure 9 illustrates the scatter plot relationship between rental and end lot.

In figure 1 the scatterplot tests the relationship between rental and end lot. As a result, it
determines that rental is affected by the end lot because the end lot rental rate is higher than the
corner lot.

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 Figure 10 illustrates the scatter plot relationship between rental and corner lot.

Figure 2, shows the scatter plot relationship between rental and corner lot. The data is the result
of corner lot houses in the area showing a positive relationship due to the higher rental rate
compared to the other type of lot.

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CORRELATIONS

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4.4 THE ESTABLISHMENT OF THE MRA MODEL

1. Enter Method & Measure of Dispersion

• Standard Error of Estimate (SEE) = 48.543

• R square = 0.976
• Adjusted R square = 0.975
• ANOVA F = 803.500 (>4)
• t value = >2

Constant = 408.958

End lot = 11.289

Corner lot = 38.480

2. Regression Coefficients

Constant ß0= 408.958

End lot ß1 = 290.625
Corner lot ß2 = 990.625

3. MRA Model

Rental = 408.958 + (290.625 x End lot) + (990.625 x Corner lot)

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4. MRA Prediction & Different Percentage

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5.0 THE STRENGTH AND WEAKNESSES OF THE MRA MODEL
The data has been achieved in multiple regression analysis to examine the effects of
decision-making strategy, group to which parties belonged, and type of plan on individuals'
evaluation of the discussion process. Specifically, the data underwent multiple regression analysis
with the assessment of the discussion process, the review of the discussion outcomes, and the
overall satisfaction of the discussion as the dependent variables, and the decision-making
strategy, the party to which the parties belonged, and the type of plan as the independent
variables (Takemura, 2021).

5.1 STRENGTH

1. Less human bias and error

Human biases are well-documented, from implied connection tests that explain preference
humans may not even be aware of field experiments showing how much these biases can
affect outcomes. It comes at the expense of looking for additional information that could
lead to a further understanding of the problem. However, in line with technological
developments, a program has been designed to approximate human admissions
decisions with 90 to 95 per cent accuracy (James Manyika, 2019). In this case study, we
can use the Statistical Package for the Social Sciences (SPSS) program to analyse the
data collected. For example, the real estate agent could find that the size of the home and
the number of bedrooms strongly correlate to the home's price. In contrast, the proximity
to schools does not correlate at all or has a negative correlation if it is primarily a retirement
community (Weedmark, 2018).

2. Better accuracy & efficiency

Multiple Regression Analysis (MRA) can identify outliers or abnormalities because it will
give better accuracy and efficiency in predicting property value than the traditional
approach. For example, while reanalysing the data related to house rentals. The MRA
model is more accurate since the dependent variable to be studied or predicted mostly
depends upon more than one independent variable instead of just one variable, which
may have significant effects on the dependent variable. Regression models are easy to
understand and build upon basic statistical principles, such as correlation. The output of
regression models is an algebraic equation that is easy to understand and use for
predicting (MH, 2020).

27
 In this project, we are trying to estimate the price of the double-story terrace house from
the size of the house's land, but it is not the only feature (independent variable) that
determines the house price. Therefore, to make predictions better, we should consider
other elements like built-up area, property design, accessibility, house orientation, and
many more independent variables stated above, which could influence the house price.
Thus, we must consider the multiple regression model to obtain findings with better
predictions and greater accuracy.

5.2 WEAKNESSES

1. Incomplete data
Any disadvantages to using a multiple regression model usually come down to the data
used. For example, when reviewing the price of homes, assume the real estate agent
looked at only ten homes, seven of which were purchased by young parents. In this case,
the proximity of schools may lead one to believe that this affected the sale price for all
homes sold in the community. This data shows the traps of incomplete data. If she used
a larger sample, she could have found that, out of 100 homes sold, only twenty per cent
of the home values were connected to a school's proximity. If she had used the buyers'
ages as a predictor, she could have found that buyers under 30 years of age were willing
to pay more for homes in the community than buyers over 30.

2. Sensitive
Regression models cannot work correctly if the input data has errors, which means poor
quality data. The regression model will suffer if the data pre-processing is not completed
well to remove missing values, redundant data, outliers, or imbalanced data allocation.
Data outliers can drastically damage a machine learning model's performance and can
often lead to models with low accuracy. Besides, as the number of variables increases,
the reliability of the regression models decreases. Regression models work better if we
have a small number of variables. For this project, we must collect data from 40 houses
with 18 dependent variables to ensure that the data obtained is not error and accurate.
Even when entering data into a model, the regression models do not automatically take
care of nonlinearity. The user needs to imagine the kinds of additional terms that might be
required to be added in the regression model to improve its fits, such as the formula of
alpha and beta (MH, 2020).

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6.0 RECOMMENDATION
Few recommendations can be recommended improving the accuracy of the model in the next
analysis.

1. Collecting more data and refining further research.

To make a prediction, a model must be constructed in a form of an equation and the
variables are really important in terms of finding the equation. To collect more data, the
data collection method needs to be determined first and all the comparable information
needs to be listed so that it will be more organized. The time taken for data retrieval will
be very short and easy when all the data has been searched and listed. When more
variables of data are being collected, more information can be obtained and the research
will go well.

2. Analyze the data through visualization.

After keying in and manipulating all the data in the Statistical Package for the Social
Sciences (SPSS) software, there will be some visualization of data like plot graphs, bar
charts or histograms. Through the visualization data, determine what data the chart is
supposed to represent since it will be used as proof to back up a statement or opinion. It
needs to be done thoroughly because the model might be misinterpreted due to the
reliance on ignoring the conventions. When there is an excessive amount of data
displayed, the visualization may become overly complicated to understand. Technically,
by looking at the data meticulously it can make the information being generated
accurately.

3. Apply the use of the Multiple Regression Analysis technique (MRA) in the organization of
the property management business.
For example, by using the MRA technique in finding the statistical and prediction of the
value of the dependent variable, the organization can predict the price of the property
instead of asking the valuer to value the property. Then, each prediction of value is given
a weight, with the weights indicating how much each predictor contributed to the final
prediction (W.Moore, 2006). To ensure that the data of the dependent variable are
regularly distributed, a normality test is conducted and also between each of
the independent variable and dependent variable, the scatter plot was examined.

29
7.0 CONCLUSION

In conclusion, the Multiple Regression Analysis (MRA) model is technically a very useful
statistical technique tool for making a prediction or forecast. Based on the research, showed a
data set on real estate that detailed the rental price of particular residences in Setia Alam,
Selangor and it also shows how statistical analysis could be used to enhance investment analysis.
The contribution of each pricing factor to the overall rental cost of a property may be determined
by using a Multiple Regression Analysis (MRA). Before the MRA model can be used to produce
a prediction or forecast, it must go through several phases of development and pass several tests
which are normally the normality test will be conducted to make sure that the data is the
dependent variable is distributed properly and perform bell shape curve. The data consists of 18
evaluation parameters or explanatory variables that describe each aspect of each 40 residential
houses in Setia Alam, Selangor.

The property that is being valued is located in an urban area, where the residential
structures have a significant potential for rental income (Shetty, 2020). MRA allows us to see how
each characteristic impacts the dependent variable separately and collectively. Based on the
result from the analysis that has been conducted, the actual rental price of the corner-lot house
is RM4500, the end-lot house is RM3800 while the accommodated house is RM3500. There are
about 10 houses which have low predictions than the actual rental price of the house which makes
the percentage of the price decrease. The t-value for the variables of end-lot, extended house
and type of design have exceeded more than 2.0 which makes the variable to be significant.
Analyzing the data can raise the reliability factor for findings from Multiple Regression Analysis
(MRA) and conventional procedures, the valuer's impression is important and subject to
interpretation. Depending on the situation, the percentage variation may also fluctuate.

30
8.0 APPENDIX

Figure 11 shows a discussion with group members before proceeding with the site visit activity.

Figure 12 shows inspection by collecting data based on observations of the comparables

houses.

Figure13 shows a discussion on inserting data into the Statistical Package for the Social
Sciences (SPSS).

31
Figure 14 shows examples of forms used during inspection to facilitate data collection activities.

Figure 15 shows the site plan for Taman Anggun 2.

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Figure 16 shows signboard of Jalan Setia Wawasan U13/31D and the basic corner lot house in
Taman Anggun 2.

Figure 17 shows the house orientation faces neighbour.

Figure 18 shows the end lot house in Taman Anggun 2.

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9.0 REFERENCES

James Manyika. (2019, October 25). What Do We Do About The biases in AI? Retrieved from
Harvard Business Review: https://hbr.org/2019/10/what-do-we-do-about-the-biases-in-ai

Masri, M. H., Nawawi, A. H., & Sipan, I. b. (2016). Review of Building, Locational,
Neighbourhood Qualities Affecting House Prices in Malaysia. Social and Behavioral
Sciences, 1-2.

MH, V. (2020). Advantages and Disadvantages of Regression Model. Retrieved from VTU
Pulse: https://www.vtupulse.com/machine-learning/advantages-and-disadvantages-of-
regression-model/

Moore, A. W. (2006). Combining Multiple Signals for Biosurveillance. Handbook of

Biosurveillance, 235-242.

Shetty, D. V. (2020). Multiple regression analysis to predict the value of a residential building
and to compare with the conventional method values. Journal of Physics: Conference
Series, 8.

Shuid, S. (2015). The housing provision system in Malaysia. Habitat International, 1-2.

Takemura, K. (2021). Multiple Regression Analysis. Retrieved from ScienceDirect:

https://www.sciencedirect.com/topics/economics-econometrics-and-finance/multiple-
regression-
analysis#:~:text=Results%20of%20Multiple%20Regression%20Analysis,by%20MRA%2
0are%20called%20coefficients.

Vern, T. W., Mohsin, A. B., Rahman, M. S., Teck, G. L., Choon, T. L., & Ming, T. (2020). The
Effects Of Proximity To Cemetery On Purchasing Residential Properties In Malaysia.
International Journal of Scientific and Technology Research Volume 9, Issue 03, 1-2.

Weedmark, D. (2018, March 13). The Advantages & Disadvantages of a Multiple Regression
Model. Retrieved from Sciencing : https://sciencing.com/advantages-disadvantages-
multiple-regression-model-12070171.html

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