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Tracking the pulse of a city—3D real estate price heat maps
Author(s) -
Agarwal Sumit,
Fan Ying,
McMillen Daniel P.,
Sing Tien Foo
Publication year - 2021
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12522
Subject(s) - real estate , database transaction , economies of agglomeration , econometrics , tracking (education) , transaction data , temporal resolution , business cycle , diffusion , economics , visualization , 3d city models , transaction cost , computer science , microeconomics , data mining , database , finance , macroeconomics , psychology , pedagogy , physics , quantum mechanics , thermodynamics
This paper proposes the use of a semiparametric model based on a locally weighted approach that controls for dynamic agglomeration and diffusion effects in constructing localized housing price indices. Based on residential transaction records in Singapore, we create three‐dimensional interactive heat maps that allow for better measurement and visualization of spatial variations and heterogeneity in price appreciation. The heat map captures regional variations and temporal dispersions in price appreciation rates in the business cycle. Our methodology provides high‐resolution information about price dynamics that could aid individual buyers, investors, and policy makers in making objective and informed decisions.