Bayesian spatio-temporal modeling of real estate launch prices

In this study, we utilize Bayesian methods to construct a comprehensive spatio-temporal model for real estate launch prices in the city of São Paulo. Our approach involves the decomposition of the price series into trend and cycle components, as well as the inclusion of spatially continuous and time...

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Bibliographic Details
Published inJournal of Spatial Econometrics Vol. 4; no. 1
Main Authors Rocio, Vitor Dias, Laurini, Márcio Poletti
Format Journal Article
LanguageEnglish
Published Cham Springer International Publishing 01.12.2023
Subjects
Econometrics
Economics
Economics and Finance
Finance
Insurance
Management
Original Paper
Regional/Spatial Science
Statistics for Business
C11
C22
Bayesian methods
C23
Spatio-temporal modeling
Property prices
Online AccessGet full text
ISSN2662-2998
2662-298X
DOI10.1007/s43071-023-00044-z

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Summary:In this study, we utilize Bayesian methods to construct a comprehensive spatio-temporal model for real estate launch prices in the city of São Paulo. Our approach involves the decomposition of the price series into trend and cycle components, as well as the inclusion of spatially continuous and time-varying random effects. Additionally, we incorporate a set of explanatory variables to account for hedonic aspects. Within the hedonic components, we not only consider intrinsic property characteristics but also take into consideration neighborhood features and the economic environment. With the application of this model, we have successfully estimated equilibrium prices for various locations, offering a more transparent interpretation of property price dynamics spanning from January 2000 to December 2013 within São Paulo city.
ISSN:2662-2998
2662-298X
DOI:10.1007/s43071-023-00044-z