Automated land valuation models: A comparative study of four machine learning and deep learning methods based on a comprehensive range of influential factors

Accurate land valuation is necessary for tax purposes, land resources allocation, real estate management and urban development and planning. Since various factors from different domains affect land prices through non-linear relationships, automating the land valuation process on a large scale is a complex task. Advanced technologies in big data analysis and artificial intelligence have demonstrated superior capabilities in knowledge extraction in such cases. Accordingly, this paper develops and compares the performance of four Automated Valuation Models (AVMs) based on machine learning and deep learning techniques utilizing physical, geographical, socio-economic, environmental, legal and planning factors in Melbourne Metropolitan, Australia. According to the results, the eXtreme Gradient Boosting (XGBoost) method outperforms other algorithms of Support Vector Regression (SVR), random forest and Deep Neural Network (DNN). This method has achieved the coefficient of determination (R2) of 0.862, Mean Absolute Percentage Error (MAPE) of 0.139, and normalized Root Mean Square Error (nRMSE) of 0.281. The achieved high accuracy is due to incorporating a wide range of driving factors and applying innovative feature selection and hyperparameter tuning procedures evaluating various possible feature sets and hyperparameters. Accordingly, this paper can contribute to research, governmental and industry-based activities in terms of developing AVMs for mass land valuation.