This document discusses mass valuation processes and decisions. It addresses topics like gathering, storing, and sharing land administration data. It examines whether current Cadastre and Land Registry (C&LR) processes are suitable. It also looks at how C&LR can contribute to a dynamic real estate market system. Specifically, it considers how C&LR can provide essential parameters and processes by leveraging site characteristics, property rights data, spatiotemporal labeling, and value-determining parameters to support transparency and better decision making.

1. Mass Valuation:
Processes & Decisions
Gerhard.Muggenhuber@bev.gv.at
BEV - www.bev.gv.at - Federal Office of Metrology and Surveying
Dept. International Relations, State Borders
A-1020 Vienna, Schiffamtsgasse 1-3
PhD-student at TU-Vienna
C+LR KEN
Cadastre + Land Registry Knowledge Exchange Network

2. Land Administration Processes
Data – Processes – Resources

3. Land Administration Processes

4. Price - Value
Levels of value
Perspectives
on value
Source: den Ouden, E. (2012): Innovation Design: Creating Value for People, Organisations and Society. Dordrecht: Springer.
Theory of price:
benefit gained from those who
demand the entity meets the
seller's marginal costs
Theory of value:
Present worth of future benefit
Classical economic:
• Labor theory of value
• Exchange value

5. Price - Value
Levels of value
Perspectives
on value
Source: den Ouden, E. (2012): Innovation Design: Creating Value for People, Organisations and Society. Dordrecht: Springer.

6. Nutzen – Wert – Preis
Levels of value
Perspectives
on value
Source: den Ouden, E. (2012): Innovation Design: Creating Value for People, Organisations and Society. Dordrecht: Springer.
Theory of price:
benefit gained from those who
demand the entity meets the
seller's marginal costs
Theory of value:
Present worth of future benefit
Classical economic:
• Labor theory of value
• Exchange value

7. Model Valuation cycle
adapted from {Espinosa #3270}.
CRISP-DM Data Mining Process Model

8. Data categories
select / cooperate to ensure access
OBJEK
T
VALUE
§legal
Restrictions
Rights
Financial
Costs / Risks
Benefits
OBJEK
T
Site
Improvement
Land
Location
Infrastructure
Dis-/Amenities
VALUEi = f (Si, Li, Fi, §i) + f (x,y,t)

9. • How to gather / store / share data ?
• Are our processes at C&LR fit for purpose ?
– PPP: D: Sales price collection / USA: MLS / SLO: sales-price-db
– A: Transfer-prices Housing Register
• How to contribute to a dynamic system ?
Real Estate Market
a dynamic system
flats – new/old houses
VALUEi = f (Si, Li, Fi, §i) + f (x,y,t)

10. Real Estate Market observations
Life Cycle
SUPPLY TRANSFER DEMAND
Statistic Austria
(GWR)
Regions
Cadastre Asking Price Land Tenure
Public Reg.
C& LR
Statistic
Austria
Offer
Price
Use Regulation
Constructing
Investors
Subdivisions
Buildings
TO
SELL
TO
RE
NT
TO
SELL
TO
RENT
Owners
Users
Land    -   
 Building land      
 Potential land use 
Land& Building / /    - 
 Improved building
land
   - -
 Under construction ∑Building permits
∑Construction
costs
  - - - 
 New construction ∑ Building
completed
  - - 
 Old construction   - - 
 Energy efficiency    - - 
Lester, B., Visschers, L. & Wolthoff, R. (2013): Competing with Asking Prices. IZA Discussion Paper, No. 7163, http://ftp.iza.org/dp7163.pdf .
McCord, J. (2014): Northern Ireland Asking Price Index, http://www.nihe.gov.uk/northern_ireland_asking_price_index.pdf

11. Real estate transfer market
to sell
to rent

12. To
sell
To
ren
t
Flat
Flat+
House
Land
Spatio-temporal variation of characteristics & price
alternating granularity / missing characteristics

13. Real Estate: Assets & Space Markets
renting / buying / constructing / space
DiPasquale, D. & Wheaton, W.C. (1992): The Markets for Real Estate Assets and Space: A Conceptual Framework.
Journal of the American Real Estate and Urban Economic Association V20, 1, 181–197.

14. Statistical Modelling of Value

15. info is in the residuals
 analyzing variance-covariance matrix
Statistical Modelling
Challenges & Approaches

16. Real Estate Market fundamentals
spatio-temporal variation of characteristics & price
Ball, Michael (2012): RICS European Housing Review 2012. RICS. London.
ask price – sale price
EUROSTAT (Hg.) (2012): Technical manual on OWNER-OCCUPIED HOUSING for Harmonized Index of Consumer
Prices (v.2.0).

17. Willingness
Infrastructure f. data / processes / services
How much cooperation does the market accept ?
Mass valuation to facilitate better decision making:
 Socio-economic / Spatial planning processes
 Property related taxation / subsidies
 Parameters to support, but NOT to challenge individual valuation
Market observations & Mass valuation
• to reveal fundamental facts & market trends
• for a functioning /bubble-free real estate market
• for a transparent decision making within Gov. - Business - Citizens
 data on market fundamentals : NL, SWE, SLO, PL, CZ
 data on value-determining parameters FR, G: Land-value-maps
 data on public rights & restrictions CH: ÖREB
Politics
Infra-
struktur

18. Willingness
Infrastructure f. data / processes / services
Does C+LR see the opportunity ???
C+LR: opportunity
to contribute essential parameters & processes
 site characteristics of land & building
 Provide private & public property rights
 Ensure spatiotemporal labeling of data
 clearly specified metadata (level of completeness, granularity, ...)
 Value-determining parameters: efficient acquisition / multiple use
-Web- / Data-Mining / Cooperation (G-B-C)
Technical
coop.