Advanced Property Analysis

Advanced Property Analysis
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4 April 2019
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Executive Summary
In the recent past, property valuation has been a hot topic bringing attention of various stakeholders such
as real estate investors among other. In this discussions, we have identified the drivers of this
development growth, the benefits as well as the cons it poses to the residents and investors. We have also
analyzed data on St Kilda by looking at the descriptive statistics as well as the regression analysis. The
last part of this report has discussed the pros and the cons of regression modelling over other appraisal
strategies for the real estate when estimating the property value. Results showed that rental yield and
age of the building negatively affect the sale prices of the house while the rest of the variables
positively affects the sale price. Number of units in a building and age of the house were
however not significantly related with the sale price. In conclusion, it was established that there
are factors that significantly influence the sale price and as such they need to be put into
consideration before buying a house.
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Table of Contents
Executive Summary.....................................................................................................................2
Introduction..................................................................................................................................4
Part A:..........................................................................................................................................4
Part B:..........................................................................................................................................5
Part C:..........................................................................................................................................7
Part D:........................................................................................................................................10
Estimation for sale price for apartment 1:..................................................................................11
Estimation for sale price for apartment 2:..................................................................................11
Estimation for sale price for apartment 3:..................................................................................11
Part E:.........................................................................................................................................12
Conclusion.................................................................................................................................14
References......................................................................................................................................14
Appendices.................................................................................................................................15
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Introduction
Valuation of real estate property valuation is a great topic for various stakeholders for different purposes.
Speculators are intrigued to realize the price tag of the property in which they will contribute. In this
report, we sought to discuss the recent state of the high as well as the medium density housing market in
St Kilda. In this discussions, we have identified the drivers of this development growth, the benefits as
well as the cons it poses to the residents and investors. We have also analyzed data on St Kilda by looking
at the descriptive statistics as well as the regression analysis. The last part of this report has discussed the
pros and the cons of regression modelling over other appraisal strategies for the real estate when
estimating the property value.
Part A:
In this section, we discuss the current state of the high as well as the medium density
housing market in St Kilda. Melbourne's population is predicted to significantly
grow in the coming years.
Housing Type is a very crucial determinant of St Kilda's residential role and
function. In the current state, we observe that a greater concentration of higher
density dwellings has greatly attracted more young adults and smaller households,
who more often than not prefer renting. The housing market in St. Kilda has been
rising over the past few years. This rise has greatly been attributed by the rising
number of universities in the region. The rise in number of universities has seen a
subsequent rise in the student population which has resulted to high demand of
housing units. The law of supply and demand dictates that when the demand is on
rise and the economy is not able to provide the required supply then there is
likelihood of increase in the prices. This has been the case of St. Kilda where the
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