A Study for the Development of a Bid Price Rate Prediction Model Choi, Bo-Seung; Kang, Hyun-Cheol; Han, Sang-Tae;
Property auctions have become a new method for real estate investment because the property auction market grows in tandem with the growth of the real estate market. This study focused on the statistical model for predicting bid price rates which is the main index for participants in the real estate auction market. For estimating the monthly bid price rate, we proposed a new method to make up for the mean of regions and terms as well as to reduce the prediction error using a decision tree analysis. We also proposed a linear regression model to predict a bid price rate for individual auction property. We applied the proposed model to apartment auction property and tried to predict the bid price rate as well as categorize individual auction property into an auction grade.
Real estate auction;bid price rate prediction;linear regression model;decision tree analysis;