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Linear Regression Model with backward elimination feature selection to predict ROI.

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Singapore-Condominium-ROI-Prediction

A wiseman built his house on rock. The rain fell, the floods came and buffeted the house. But it did not collapse; it had been set solidly on rock

Matthew 7:24-25

Even the bible talked about building or having a house and emphasize the importance of having a solid foundation for the house. Well, the same things are relevant in Singapore as you buy a property. Though definitely we are not focusing on the foundation material, but understanding the factor that determine the value of property would definitely be important to withstand the flood of money inflation, and economy crisis!

Objective This project act in the scenario of finding properties in Singapore that give the best return after 3 years of purchase.

Data Data is taken from Condominium transaction from 2015-2020 from Real Estate Information System (REALIS), Datagov.sg and Onemap.sg API

Tools used:

  • Linear Regression
  • OneMap API
  • Feature Selection method of Backward Elimination

profitBoxplot.jpg

Conclusion

Semi detached house is the most profitable out of the type of condominium Though it is shown that the East and North East have a high profitability compared to others, however only several data points in the region that able to reach profitability Central Area is a more safer choice, and most profit condominium comes from central area From the Area wise some area that is observed with good profitability will be: Clementi, Downtown Core, Hougang, Bukit Merah

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