DETERMINING PRICE OF HOUSES BASED ON MARKET PERSPECTIVE BY USING MULTIPLE LINEAR REGRESSION ANALYSIS

Abstract

Nowadays, house is regarded as a very valuable asset to be owned. The price of house is rocketing from time to time. However, not all kind of house promising good value as there are some characteristics that affect the price of house. These characteristics build market perspective of the house price. People predict price of house by comparing the similar house that has similar characteristics. The housing developers must determine the right price so their product can fit the market so that their product price is not underrated, nor overrated. The house developer must do market research to know how the market perceives the relation between price and the characteristic of the house. Multiple linear regression can be used to predict the price of the market by considering current price of houses and the characteristics of the house. Current price of the houses that sold by the PT.XYZ shows that there are 2 types of houses that have underrated price and 1 type of house is overrated. Using the multiple linear regression model, the company can increase its profit up to 26.46 %. By knowing the market price of the house, company can optimize the profit that can be gained.