Factors Influencing Real Estate House

Prices

Group 8 (sec-A)
Members:
•Afnanul Hoque ID: 029-13-125
•Md. Fajle Rabbi ID: 029-13-037
•Mir Yamin Uddin Zidan ID: 029-13-039
•Muhammad Shakil Ahmed ID: 029-13-251
•Golam Mehbub Sifat ID: 029-13-063
I am Afnanul Hoque
ID: 029-13-125
 Introduction
• Study Focus: Analysing house pricing dynamics.
• Dependent Variable: House Price Per Square Foot.
• Independent Variables: Transaction Date, House Age, etc.
• Importance: Informs real estate decisions.
•
Methodology
Data Collection: Accurate dataset.
• Descriptive Analysis: Key statistics.
• Correlation Analysis: Relationships.
• Regression Analysis: Impact modelling.
• ANOVA Test: Overall significance.
• Interpretation: Conclusions drawn.
• Discussion: Findings & implications.
• Limitations & Future Research: Acknowledges limitations & suggests future work.
Md. Fajle Rabbi

(ID: 029-13-037)
 Litrature Review
• “The average cost of homes in a nation's real estate market is shaped
by economic, supply and demand, regulatory, and socio-demographic
elements.” d’Amato & Coskun, 2022
• Research by Wilson and Others (2017) suggests - “The efficiency of
the market for single-family homes affects their prices.”
• Albouy, Ehrlich, & Liu (2016) found in a paper work that “The
income elasticities of housing demand play a significant role in
determining house prices.”
• “Interest rates, availability and conditions of mortgage, Building
restrictions were shown to impact housing affordability significantly.”
Bramley, 2012

Presented By: Md. Fajle Rabbi (ID: 029-13-037)

• “The geographical placement of a property forms a fundamental
determinant of its valuation. Trends in urbanization and proximity to
centers of employment, amenities, and transportation networks exert a
substantial influence on property prices.” Leyk, Balk, Jones, Montgomery, & Engin, 2019
• Studies have demonstrated that - “Governmental policies designed to
foster affordable housing can mitigate inflation in prices, whereas overly
stringent regulations can limit supply and result in challenges related to
affordability.” Bramley, 2012
• 'Number of Convenience Stores' , 'The Transaction Date', 'Fluctuations in
Economic Conditions' and 'Seasonal Trends' have significance in
formulating property values. Agreed by Giuliano, Gordon, Pan, & Park
(2010) as well as (Mayer & Sinai, 2003).

Presented By: Md. Fajle Rabbi (ID: 029-13-037)

• Giuliano, Gordon, Pan, & Park (2010) also discussed the role of
urban spatial structure in shaping housing market dynamics.
Through a meticulous examination of these variables within the
broader context of economic patterns, demographic transitions, and
regulatory structures, a deeper understanding of the intricate
dynamics of the real estate market can be attained.
• Wheaton (1990) proposed a housing market matching model to
analyze the impact of vacancy and search on prices.

Presented By: Md. Fajle Rabbi (ID: 029-13-037)

Mir Yamin Uddin Zidan
Id: 029-13-039
Sec- A
Dependent variables

The only dependent variable used in this study

is the House Price Per Square Foot, and this is
the variable we would most likely want to
predict

Independent variables

The Transaction Date, House Age, Distance to

the Nearest MRT Station, Number of
Convenience Stores, Latitude, and Longitude
are the independent variables in this study.
The Descriptive analysis:
For Dependent variables
 For Independent variables

• The standard deviation is in an allowable range

• The kurtosis value of approximately 2.18 suggests that the house

prices per square foot distribution have slightly heavier tails
compared to a normal distribution.

• The skewness value of approximately 0.60 indicates a slight

right-skewed distribution. This means the data may have a longer
tail on the right side.

• Other variables have both positive and negative effects on the

dataset
 Hello
I am Muhammad Shakil Ahmed
ID: 029-13-251

Muhammad Shakil Ahmed

 Correlation analysis

House Price Per Square Foot (Y) has,

Positive relation with : Transaction Date (X1), Number of Convenience Stores (X4), Latitude (X5), Longitude
(X6)
Negative relation with: House Age (X2), Distance to the Nearest MRT Station (X3)

Muhammad Shakil Ahmed

 Regression Analysis

Multiple R (76.31%): Strength of Linear Relationship

R Square (58.23%): Explained Variance in Dependent Variable
Adjusted R Square (57.62%): Accounts for Sample Size & Independent Variables, Penalizes
Unnecessary Variables, Useful for Model Comparison
Standard Error (8.857514581): Measures Prediction Accuracy: Lower Value: Predictions Closer to
Reality, Higher Value: More Variability

Muhammad Shakil Ahmed

 ANOVA

ANOVA (Analysis of Variance), and they determine whether the test will be
PASSED for the null hypothesis if all the population values are exactly equal to
one another. Here The F-statistic is 94.5969927, and the p-value (Significance
F) is 4.8291E-74. Since the p-value is extremely small, it indicates that the
regression model is statistically significant and provides evidence against the
null hypothesis that all regression coefficients are zero.

Muhammad Shakil Ahmed

 Coefficients Table

Intercept: the estimated value of the dependent variable when all predictor
variables are zero.
Positive impact: Transaction date(5.149), ), Number of convenience stores
(1.133), Latitude (225.470)
Negative impact: House Age(-0.270), Distance to the nearest MRT station
(0.0045), Longitude(-12.42906117)

Muhammad Shakil Ahmed

 Hello

I am Golam Mehbub Sifat

ID:029-13-063
 Regression Model

House Price Per Square Foot (Y)= -14441.982+5.149*Transaction Date (X1)-0.270*

House Age (X2)-0.0045* Distance to the Nearest MRT Station (X3)+1.133* Number of
Convenience Stores (X4)+ 225.470** Latitude (X5) - 12.42906117* longitude (X6) +

8.857514581
 Limitation of the study

The study aims to understand the factors influencing a real estate firm's
house price. Data was gathered from various institutions, but due to
small observations, it's difficult to draw definitive conclusions. The
study's findings are generalized due to convenience sampling, and
cannot be applied to other real estate sectors in Bangladesh or
elsewhere. The findings can only be used for generalizations, as
Bangladesh's real estate industry is similar to other emerging nations.
 Findings
 The regression model is able to explain about
58.24% of the variation in the dependent
variable, which is the house price of unit area.
 The regression model is statistically significant,
meaning that there is a linear relationship
between the dependent variable and at least one
of the predictor variables.
 The most influential predictor variables are
latitude, transaction date, and number of
convenience stores, as they have the largest
positive coefficients and low p-values. This
means that these variables have a strong
positive effect on the house price of unit area .
 The predictor variable is longitude, as it has a small
negative coefficient and low p-value. This means that
this variable has a strong negative effect on the house
price of unit area, and it is statistically significant.
 The intercept term indicates that the estimated house
price of unit area is 40.578 when all predictor variables
are zero. However, this value may not be meaningful, as
some of the predictor variables cannot be zero in reality.
 The F-statistic and the p-value show that the regression
model is statistically significant at the 0.05 level,
meaning that there is sufficient evidence to reject the null
hypothesis that all regression coefficients are zero. This
implies that at least one of the predictor variables has a
non-zero effect on the house price.
 Conclusion

The conclusion of the study is that the house price of unit area in Taiwan depends on
several factors, such as the transaction date, the house age, the distance to the nearest
MRT station, the number of convenience stores, and the latitude. Among these
factors, latitude has the strongest positive impact on the house price of unit area,
followed by transaction date and number of convenience stores, longitude has a
negative impact on the house price of unit area. Therefore, if someone wants to buy
or sell a house in Taiwan, they should consider these factors carefully.