Using 3D geographic information system to improve sales comparison approach for real estate valuation
Haicong Yu, Ying Liu & Cunye Zhang
Geographic Information System (GIS) provides valuers with analysis tools to enhance real estate valuation. The objective of this paper is to illustrate how to use GIS with threedimensional visualization technology to improve real estate valuation. In order to do that, an integrated database for real estate valuation was built with real estate data, spatial data and valuation thematic data. The integrated database provides professional data support for valuation. Then, an improved sales comparison approach was proposed as the demonstration of the combination of valuation methods and 3D GIS. In this approach, a new procedure of selecting comparable sales was introduced. Moreover, a 3D GIS valuation model was proposed. In this model, the impact factors of the property value were determined at first. Then quantitative analysis was used to form a quantitative table for further analysis. Next, by utilizing spatial analysis, the performance value of both regional and individual impact factors was conducted. According to the analysis results and quantitative table, each impact factor can be calculated. The performance value was represented as a matrix. Through dimensionless treatment, detailed comparison approach among comparable sales in each factor can be executed, as well as the similarity analysis between the subject property and comparable sales. Eventually, the most relevant comparable sales can be determined and the adjustments can also be conducted for final valuation. At last, a 3DGISSPV system was introduced to illustrate the proposed approach. Actual data of Shenzhen, China have been used. And the system shows grate benefits for using GIS with three-dimensional visualization.
Event: XXV FIG International Congress : Engaging the Challenges, Enhancing the Relevance
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