This article is from the Australian Property Journal archive
PROPERTY owners, banks and insurers can get a better guide on the value of houses with a new hedonic based Automatic Valuation Models.
Launched by RP Data, Australia’s first Hedonic analytics measures price changes through time by controlling for a property’s location, land size, construction type and specific characteristics for example the number of bedroom and bathrooms.
The RP Data AVM platform automatically values over seven million residential properties of the 12 million properties on RP Data’s database across Australia every week and then matches that against the actual sales of property.
RP Data’s chief executive Graham Mirabito said the AVMs and Indices will provide property owners, buyers and the property industry with the most comprehensive and timely information about the $3 trillion Australian residential real estate market.
“No longer will Australians need to guess about the performance of their largest asset.
“While it is globally acknowledged that hedonic based property analytics are far superior, they can only perform if running on high quality, accurate and timely data,” he added.
Leveraging the Strategic Alliance Agreement with First American Real Estate Solutions (FARES), RP Data and FARES have worked closely with the Australian Finance industry to localise the technology and apply it to Australia’s largest property database held by RP Data.
FARES is RP Data’s largest shareholder and is the worlds largest provider of AVMs having performed over 250 million AVMs.
RP Data estimates that over 500,000 property transactions and 1 million mortgages are completed every year and these transactions – generating almost 2 million property valuations.
Revolutionising the Australian property industry, RP Data’s AVMs can provide individual property valuation reports within seconds, or value entire portfolios in excess of 200,000 properties within hours.
Propertyreview.com.au
