I have my eye on the Surry Hills/Redfern market and was interested if anyone had considered or used regression to precisely estimate values of properties. I looked at the vast majority of apartment sales in Redfern and Surry Hills over the past year and came up with the following outputs. Constant $177,981.61 Area (per sqm) $5,850.17 Bedroom $57,197.74 Bathroom $44,591.74 Car Space $77,753.11 Essentially, the value of an apartment is 177981+5850*(Floor Area in sqm)+57197(#beds)+44591(#baths)+77753(#car spaces) For those with a statistics background, my F value and P values are rock solid (4.84E-24 and generally <0.05 respectively). Using this I was able to identify that statistically, the most undervalued property sold in the last year was 43/146-152 Pitt St. It sold for $1,030,000, when the model predicts it had a value of $1,277,033 (assuming 130sqm of floorspace, 3 beds, 2 baths and 1 car space) (for a discount of $247,033). Statistically, the most overvalued property sold in the last year was 209/1A Great Buckingham St. It sold for $1,860,000 (assuming 160sqm of floor space, 2 beds, 2 baths, 1 car space) when the model suggests a value of $1,395,340 (for a premium of $464,659). For reference, Great Buckingham is a premium street and people pay extra just to live on it. Anyone got any stories about applying this? Any words of caution? I am going to recreate the model for houses too.