Measuring land lot shapes for property valuation

Abstract

PurposeUnstructured data such as images have defied usage in property valuation for a long time. Instead, structured data in tabular format are commonly employed to estimate property prices. This study attempts to quantify the shape of land lots and uses the resultant output as an input variable for subsequent land valuation models.Design/methodology/approachImagery data containing land lot shapes are fed into a convolutional neural network, and the shape of land lots is classified into two categories, regular and irregular-shaped. Then, the intermediate output (regularity score) is utilized in four downstream models to estimate land prices: random forest, gradient boosting, support vector machine and regression models.FindingsQuantification of the land lot shapes and their exploitation in valuation led to an improvement in the predictive accuracy for all subsequent models.Originality/valueThe study findings are expected to promote the adoption of elusive price determinants such as the shape of a land lot, appearance of a house and the landscape of a neighborhood in property appraisal practices.