Developing Area Real Estate Valuation Based on Linear Regression and KNN Algorithm

Investors not only finance real estate in well-developed regions but also developing countries and cities. We use Taiwan Real Estate data from UCI Machine Learning repository and set up linear regression models to predict a House Unit Price and a KNN classification model to categorize the ranks. The findings show that the distance to the nearest MRT station and the number of convenience stores within walking distance have major impacts on the House Unit Price. Governments within developing areas should focus on infrastructure and plan to create more business centers. This focus could increase the population and draw more investors to accelerate development.