Reframing Spatial Housing Models: A Lateral Thinking Approach to Real Estate Valuation in Taichung, Taiwan

Authors

  • Jyhjeng Deng DaYeh University
  • Hsun-Yu Chan Accounting and Information Management Department, DaYeh University, Taiwan
  • Yu-Chen Lai Accounting and Information Management Department, DaYeh University, Taiwan
  • Yu-Xin Huang Accounting and Information Management Department, DaYeh University, Taiwan

DOI:

https://doi.org/10.6977/IJoSI.202604_10(2).0004

Keywords:

Housing prices, geographical features, regression analysis, amenity proximity, lateral thinking

Abstract

This study investigates the impact of geographic features on housing prices, based on 229 transactions recorded between September 2023 and September 2024 in the North District of Taichung City, Taiwan, using data from the Ministry of the Interior’s real estate platform. Building upon an existing regression model that includes structural variables such as the lot size, number of rooms, age, number of floors, availability of an elevator, and the presence of a garage, we introduce six additional geographic variables that reflect the proximity to a metro station, hospital, museum, central business district (CBD), funeral home, and clothing outlets. The revised model demonstrates improved explanatory power, with the R² increasing from 0.756 to 0.791. Among the newly included variables, proximity to the CBD and the museum exhibit the strongest positive effects on housing prices, contributing increases of 988.3381 and 616.4406 Wons, respectively. These effects are both statistically significant. In contrast, proximity to a metro station has a significant negative impact of –722.7214 Wons, a finding that is attributed to a boundary constraint, since only sales south of the station fall within the district, creating a data bias. Using the escape technique of lateral thinking these results also provide practical guidance for buyers by identifying cost-effective areas located just outside the 500 m proximity zones of high-value amenities. One such example is located near the intersection of Zhongming Road and Section 1, Zhongqing Road, with price savings of at least 736 Wons. A residual analysis reveals clustering in the Yizhong Business District, suggesting that other unobserved value factors may warrant future investigation.

Author Biographies

Jyhjeng Deng, DaYeh University

Professor and Chair

Industrial Engineering and Technology Management Department

DaYeh University

Hsun-Yu Chan, Accounting and Information Management Department, DaYeh University, Taiwan

   

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Published

2026-05-06

Issue

Vol. 10 No. 2 (2026): International Journal of Systematic Innovation

Section

Regular full papers

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