The paper introduced the use of a hybrid system of neural networks support vector machines (NNSVMs) consisting of artificial neural networks (ANNs) and support vector machines (SVMs) to price single-family properties.
The mechanism of the hybrid system is such that its output is given by the SVMs which utilise the results of the ANNs as their input. The results are compared to other property pricing modelling techniques including the standalone ANNs, SVMs, geographically weighted regression (GWR), spatial error model (SEM), spatial lag model (SLM) and the ordinary least squares (OLS). The techniques were applied to a dataset of 3,225 properties sold during the period, January 2012 to May 2014 in Cape Town, South Africa.
The results demonstrate that the hybrid system performed better than ANNs, SVMs and the OLS. However, in comparison to the spatial models (GWR, SEM and SLM) the hybrid system performed abysmally under with SEM favoured as the best pricing technique.
The findings extend the debate in the body of knowledge that the results of the OLS can significantly be improved through the use of spatial models that correct bias estimates and vary prices across the different property locations. Additionally, utilising the result of the hybrid system is thus affected by the black-box nature of the ANNs and SVMs limiting its use to purposes of checks on estimates predicted by the regression-based models.
