Analysing House Price Construction in Luzon Using Multiple Regression Analysis
Graduate School of Business
Master in Business Administration
Term paper requirement for
Quantitative Techniques in Management Using Statistical Tool
Analysing House Price Construction in Luzon
Using Multiple Regression Analysis
January 2014
Abstract
This paper illustrates how Multiple Regression Analysis been used in explaining price variationfor selected houses. Each attribute that theoretically identified as price determinant is priced and the perceived contribution of each is explicitly shown and statiscally defended. This paper demonstrates how the statistical analysis is capable of analyzing property investment by considering multiple determinants.
The consideration of various characteristics which is more rigorous enables better investment decision making, especially for start-up families in Luzon who wanted to decide either to invest in a new home or stay on renting, while taking major consideration this big investment with its future benefits.
Introduction
Property investment as other investment, involves the decision of putting aside forthe future benefits. The main distinguishing feature between property investment and other paper investment is it involves huge amount of initial capital which certainly the investor will not take risk by omitting proper decision making process. The decision to develop or toinvest in property, for example lies in the hand of the developers. The developers are responsible to decide what developments will be profitable as well as permissible on that particular price of land.
An additionalfeature of property investment is itsmarket is characterized by low demandand high supply or vice versa. These arerealities in the property business.
Improper analysis could lead tooverbuilding or glut in the market. Overbuilding becomes a topic of discussion and it is impossible to turn the clock backward. The adjustment process will take place either at
Master in Business Administration
Term paper requirement for
Quantitative Techniques in Management Using Statistical Tool
Analysing House Price Construction in Luzon
Using Multiple Regression Analysis
January 2014
Abstract
This paper illustrates how Multiple Regression Analysis been used in explaining price variationfor selected houses. Each attribute that theoretically identified as price determinant is priced and the perceived contribution of each is explicitly shown and statiscally defended. This paper demonstrates how the statistical analysis is capable of analyzing property investment by considering multiple determinants.
The consideration of various characteristics which is more rigorous enables better investment decision making, especially for start-up families in Luzon who wanted to decide either to invest in a new home or stay on renting, while taking major consideration this big investment with its future benefits.
Introduction
Property investment as other investment, involves the decision of putting aside forthe future benefits. The main distinguishing feature between property investment and other paper investment is it involves huge amount of initial capital which certainly the investor will not take risk by omitting proper decision making process. The decision to develop or toinvest in property, for example lies in the hand of the developers. The developers are responsible to decide what developments will be profitable as well as permissible on that particular price of land.
An additionalfeature of property investment is itsmarket is characterized by low demandand high supply or vice versa. These arerealities in the property business.
Improper analysis could lead tooverbuilding or glut in the market. Overbuilding becomes a topic of discussion and it is impossible to turn the clock backward. The adjustment process will take place either at
References: http://www.ibimapublishing.com/journals/CIBIMA/cibima.html http://www.census.gov.ph/