Tracking residential real estate capital growth in NSW by constructing a price index from sales transactions

Emad Nashed, Michael Baron

Research output: Contribution to journalArticlepeer-review

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Abstract

The main objective of this paper is to investigate residential real estate capital growth in the state of NSW (Australia). Tracking capital growth has been instrumental for tracing price variations & value growth of residential real estate. More specifically, residential real estate past sales transactions can be utilized to track capital growth using repeat sales approach. Ordinary least squared method was used to fit a linear model and construct a price index. The results were used to establish a yearly and quarterly price index for the whole state as well as for each respective district. The research shows that while using a mean price as a measure for tracking growth can produce misleading results, the capital growth-tracking can be carried out more accurately by the means of investigating repeat sales. Furthermore, the research reveals trends in the property market as well as areas with the highest and lowest growth. The results produced can help investors, banks, and government organizations to compare capital growth across different districts at different times and drive lending, investment, or development decisions.
Original languageEnglish
Number of pages11
JournalJournal of Data Science and Intelligence Systems
DOIs
Publication statusE-pub ahead of print - 01 Sept 2023

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