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Article

Real Estate Market Forecasting for Enterprises in First-Tier Cities: Based on Explainable Machine Learning Models

1
School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
2
Business School, Beijing Information Science and Technology University, Beijing 100192, China
3
Institute of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China
4
International Business School, Beijing University of Financial Technology, Beijing 101117, China
*
Author to whom correspondence should be addressed.
Systems 2025, 13(7), 513; https://doi.org/10.3390/systems13070513
Submission received: 27 April 2025 / Revised: 4 June 2025 / Accepted: 23 June 2025 / Published: 25 June 2025

Abstract

The real estate market significantly influences individual lives, corporate decisions, and national economic sustainability. Therefore, constructing a data-driven, interpretable real estate market prediction model is essential. It can clarify each factor’s role in housing prices and transactions, offering a scientific basis for market regulation and enterprise investment decisions. This study comprehensively measures the evolution trends of the real estate markets in Beijing, Shanghai, Guangzhou, and Shenzhen, China, from 2003 to 2022 through three dimensions. Then, various machine learning methods and interpretability methods like SHAP values are used to explore the impact of supply, demand, policies, and expectations on the real estate market of China’s first-tier cities. The results reveal the following: (1) In terms of commercial housing sales area, adequate housing supply, robust medical services, and high population density boost the sales area, while demand for small units reflects buyers’ balance between affordability and education. (2) In terms of commercial housing average sales price, growth is driven by education investment, population density, and income, with loan interest rates serving as a stabilizing tool. (3) In terms of commercial housing sales amount, educational expenditure, general public budget expenditure, and real estate development investment amount drive revenue, while the five-year loan benchmark interest rate is the primary inhibitory factor. These findings highlight the divergent impacts of supply, demand, policy, and expectation factors across different market dimensions, offering critical insights for enterprise investment strategies.
Keywords: real estate market; real-estate enterprises; market forecasting; explainable machine learning models real estate market; real-estate enterprises; market forecasting; explainable machine learning models

Share and Cite

MDPI and ACS Style

Song, D.; Hu, G.; Li, H.; Zhao, H.; Wang, Z.; Liu, Y. Real Estate Market Forecasting for Enterprises in First-Tier Cities: Based on Explainable Machine Learning Models. Systems 2025, 13, 513. https://doi.org/10.3390/systems13070513

AMA Style

Song D, Hu G, Li H, Zhao H, Wang Z, Liu Y. Real Estate Market Forecasting for Enterprises in First-Tier Cities: Based on Explainable Machine Learning Models. Systems. 2025; 13(7):513. https://doi.org/10.3390/systems13070513

Chicago/Turabian Style

Song, Dechun, Guohui Hu, Hanxi Li, Hong Zhao, Zongshui Wang, and Yang Liu. 2025. "Real Estate Market Forecasting for Enterprises in First-Tier Cities: Based on Explainable Machine Learning Models" Systems 13, no. 7: 513. https://doi.org/10.3390/systems13070513

APA Style

Song, D., Hu, G., Li, H., Zhao, H., Wang, Z., & Liu, Y. (2025). Real Estate Market Forecasting for Enterprises in First-Tier Cities: Based on Explainable Machine Learning Models. Systems, 13(7), 513. https://doi.org/10.3390/systems13070513

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