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The	
  Problem
• Current	
  forecasting	
  methods	
  are	
  arbitrary and	
  not	
  rigorously	
  back-­‐tested.	
  
• Rear-­‐view looking	
  data	
  is	
  used;	
  does	
  NOT	
  reflect	
  forward	
  looking	
  realities.
• Real	
  Estate	
  is	
  a	
  fundamentals	
  (demand	
  and	
  supply)	
  driven	
  industry	
  with	
  huge	
  	
  	
  	
  	
  	
  	
  
sums	
  at	
  stake.
• Risk/Returncan	
  be	
  optimized with	
  data-­‐driven	
  information	
  and	
  insights.	
  
What	
  we	
  do
Using	
  Deep	
  Learning	
  methods,	
  we	
  process	
  more	
  than	
  20	
  
years	
  worth	
  of	
  Macroeconomic	
  and	
  capital	
  market	
  data,	
  
historical	
  transactions,	
  and	
  property	
  features	
  to	
  forecast	
  
near-­‐term	
  price	
  trends	
  in	
  Singapore,	
  enabling	
  market	
  players	
  
to	
  make	
  better-­‐informed	
  decisions.
Data	
  à Insights
Unit	
  psf
Macroeconomic
e.g.	
  GDP,	
  Stock	
  Index,	
  
Housing	
  Supply,	
  URA	
  
Property Price	
  Index
Past	
  
transactions
Official	
  URA	
  data with	
  
outliers	
  removed
Property	
  
features
e.g. Distance	
  to	
  MRT,	
  
schools,	
  floor,	
  area,	
  
tenure
Data
Machine	
  
Learning	
  
Algorithms
Insights
Feeback
URA	
  Property	
  
Price	
  Index
Project	
  
average	
  psf
Unit	
  psf
The	
  Development	
  Process
Forecasting	
  the	
  URA	
  Property	
  Price	
  Index
The	
  red	
  segment	
  represents	
  the	
  results	
  forecasted by	
  our	
  algorithm.
Measuring	
  Accuracy	
  -­‐ Mean	
  Absolute	
  Percentage	
  Error	
  (MAPE)
Where At is	
  the	
  actual	
  value	
  and Ft is	
  the	
  forecast	
  value,	
  the	
  difference	
  between At and Ft is	
  
divided	
  by	
  the	
  Actual	
  value At again.	
  
The	
  absolute	
  value	
  in	
  this	
  calculation	
  is	
  summed	
  for	
  every	
  forecasted	
  point	
  in	
  time	
  and	
  
divided	
  by	
  the	
  number	
   of	
  fitted	
  points n.	
  Multiplying	
   by	
  100	
  makes	
  it	
  a	
  percentage	
  error.
Percentile	
  (%) MAPE	
  (%)
50.0 4.3
75.0 8.1
80.0 9.3
Error	
  distribution	
  – Average	
  Project	
  psf
How	
  do	
  we	
  compare?	
  
MAPE	
   *Zillow (%) CatchSense (%)
Within 5% 53.9 55.8
Within 10% 75.6 81.7
Within	
  20% 89.7 95.3
Median 4.5 4.3
*Zillow	
  is	
  the	
  leading	
  property	
  portal	
  in	
  the	
  US,	
  listed	
  on	
  the	
  NASDAQ	
  with	
  a	
  $4.5b	
  market	
  cap.
Error	
  by	
  region
Region *MdAPE (%)
Core Central	
  Region 4.9
Outside	
  Central	
  Region 3.8
Rest	
  of	
  Central	
  Region 4.0
Median 4.3
*MdAPE uses	
  Median	
  Absolute	
  Percentage	
  Error	
  instead	
  of	
  Mean	
  
Top	
  features	
  -­‐ Project
Top	
  features	
  -­‐ Unit
In	
  the	
  Pipeline	
  
• Extracting	
  drivers	
  (coefficients)	
  of	
  price	
  movements
• Displaying	
  comparable	
  transactions	
  to	
  support	
  forecasts	
  
• Investment	
  tool	
  to	
  rank	
  projects/units	
  by	
  appreciation	
  potential
• Applying	
  model	
  to	
  commercial	
  property	
  and	
  rentals
Why	
  CatchSense?	
  
• A	
  scientific,	
  data-­‐driven	
  forecasting	
  tool	
  for	
  pricing
• Make	
  better-­‐informed	
  decisions	
  before	
  investing/divesting
• Independent,	
  trusted	
  third-­‐party	
  projections	
  
We	
  use	
  data	
  to	
  answer	
  these	
  questions
❔ When	
  to	
  invest/divest	
  – emerging	
  trends,	
  turning	
  points,	
  risks
❔ Where	
  to	
  invest?
❔ What	
  to	
  build	
  – winning	
  product	
  attributes
❔ Who	
  to	
  sell	
  to?
❔ How	
  much	
  to	
  charge?	
  
Thank	
  you!	
  
hello@catchsense.com

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CatchSense

  • 1.
  • 2. The  Problem • Current  forecasting  methods  are  arbitrary and  not  rigorously  back-­‐tested.   • Rear-­‐view looking  data  is  used;  does  NOT  reflect  forward  looking  realities. • Real  Estate  is  a  fundamentals  (demand  and  supply)  driven  industry  with  huge               sums  at  stake. • Risk/Returncan  be  optimized with  data-­‐driven  information  and  insights.  
  • 3. What  we  do Using  Deep  Learning  methods,  we  process  more  than  20   years  worth  of  Macroeconomic  and  capital  market  data,   historical  transactions,  and  property  features  to  forecast   near-­‐term  price  trends  in  Singapore,  enabling  market  players   to  make  better-­‐informed  decisions.
  • 4. Data  à Insights Unit  psf Macroeconomic e.g.  GDP,  Stock  Index,   Housing  Supply,  URA   Property Price  Index Past   transactions Official  URA  data with   outliers  removed Property   features e.g. Distance  to  MRT,   schools,  floor,  area,   tenure Data Machine   Learning   Algorithms Insights Feeback
  • 5. URA  Property   Price  Index Project   average  psf Unit  psf The  Development  Process
  • 6. Forecasting  the  URA  Property  Price  Index The  red  segment  represents  the  results  forecasted by  our  algorithm.
  • 7. Measuring  Accuracy  -­‐ Mean  Absolute  Percentage  Error  (MAPE) Where At is  the  actual  value  and Ft is  the  forecast  value,  the  difference  between At and Ft is   divided  by  the  Actual  value At again.   The  absolute  value  in  this  calculation  is  summed  for  every  forecasted  point  in  time  and   divided  by  the  number   of  fitted  points n.  Multiplying   by  100  makes  it  a  percentage  error.
  • 8. Percentile  (%) MAPE  (%) 50.0 4.3 75.0 8.1 80.0 9.3 Error  distribution  – Average  Project  psf
  • 9. How  do  we  compare?   MAPE   *Zillow (%) CatchSense (%) Within 5% 53.9 55.8 Within 10% 75.6 81.7 Within  20% 89.7 95.3 Median 4.5 4.3 *Zillow  is  the  leading  property  portal  in  the  US,  listed  on  the  NASDAQ  with  a  $4.5b  market  cap.
  • 10. Error  by  region Region *MdAPE (%) Core Central  Region 4.9 Outside  Central  Region 3.8 Rest  of  Central  Region 4.0 Median 4.3 *MdAPE uses  Median  Absolute  Percentage  Error  instead  of  Mean  
  • 13. In  the  Pipeline   • Extracting  drivers  (coefficients)  of  price  movements • Displaying  comparable  transactions  to  support  forecasts   • Investment  tool  to  rank  projects/units  by  appreciation  potential • Applying  model  to  commercial  property  and  rentals
  • 14. Why  CatchSense?   • A  scientific,  data-­‐driven  forecasting  tool  for  pricing • Make  better-­‐informed  decisions  before  investing/divesting • Independent,  trusted  third-­‐party  projections  
  • 15. We  use  data  to  answer  these  questions ❔ When  to  invest/divest  – emerging  trends,  turning  points,  risks ❔ Where  to  invest? ❔ What  to  build  – winning  product  attributes ❔ Who  to  sell  to? ❔ How  much  to  charge?