AU2019101193A4 - LAND USE INDICATORS FOR REAL ESTATE MARKET Residential and Commercial Real Estate Market Data-Driven Decision-Making - Google Patents

Abstract

Land-use indicators for commercial and residential real estate market in the form of a digital report (or real-rime data on mobile app) to facilitate data-driven decision-making. The first report is a residential digital report with the key land-use indicators for the cadastral parcel of the land. This report will facilitate the property investor, or new home buyer, or tenant needs. This report is written in an easily readable format with indicator interpretations on hazards, infrastructure, and socioeconomic value and visualisations/icons are associated with indicators. The second report is a commercial digital report highlighting keywords with possible commercial uses under land-use/planning regulations and simultaneously highlighting business/commercial categories for the cadastral parcel of the land. This report aims to facilitate commercial leasing, i.e. to provide keywords insights to help commercial real estate agencies to lease commercial real estate having the data on business/commercial clustering in the chosen location.

Description

INNOVATION PATENT

LAND USE INDICATORS FOR REAL ESTATE MARKET

Residential and Commercial Real Estate Market

Data-Driven Decision-Making

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TECHNICAL FIELD [0001] The present disclosure relates to the data-driven decision-making in a form of the digital report produced with the use of API (an application program interface), or other querying tools, or manually by querying land-use data/indicators for the particular cadastral parcel. This disclosure will incorporate the operation of the following: Google Maps data, Google My Business data or another source of data on business/commercial categories, Geographic Information Systems (GIS), spatial data, API to collect data from various sources or other querying tool, GIS query of cadastral parcel, data capture within a specified radius/buffer (0,01km to unlimited) from the specified cadastral parcel, and data on residential and commercial properties.

BACKGROUND [0002] Land use data can be used to facilitate the decision-making process in residential and commercial real estate. Land use data is open, available, and accessible by law. However, some difficulties arise with the data gathering for the specific need (for the purpose to purchase the residential property or to lease the commercial property) from the one source of information in a local/simple language. The interpretation of land use data causes difficulties for end-users because land use data is overcomplicated, hard to read, and too scientific to understand and apply in real-life settings. Moreover, a lot of data/information/indicators are available from various data sources. However, only a particular set of indicators will facilitate the particular customer need, i.e. the dataset for the residential real estate decision-making will be different from the dataset for commercial decision-making.

[0003] There are two major decision-making problems in real estate which are related respectively to residential and commercial properties. The first decision-making problem is that the dataset for residential real estate buyers/tenants is not available in the easily readable format with indicators on hazards, infrastructure, and socioeconomic value. Under the Section 32 Vendor Statement the information on the land use/planning zone and some considerations on bushfire risk assessment could be provided by the solicitor in Australia.

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The financial gain or loss is most commonly assessed indicator when dealing with residential real estate. The rest information is not considered when making a decision on residential property. However, the information on hazards, infrastructure, and socioeconomic value is vital for the long-term investment (residential real estate).

[0004] The second decision-making problem is that the service providing an advice on the potential use of commercial real estate which considers the business/commercial clustering in surrounding the cadastral parcel area does not exist. The land-use legislation is vague and sophisticated to apply. The knowledge of the planning zone and overlays applicable for the specific cadastral parcel provides limited clues on potential commercial uses. Multiple uses are allowed under the one land use/planning zone and some uses are restricted under some land use/planning overlays. The simple combination of uses allowed under planning regulations with business/commercial categories in the surrounding the cadastral parcel area is essential to drive the decision-making in fast-paced commercial real estate.

[0005] Residential and commercial digital services in the form of a digital report will be provided online and accessed through various devices. The mobile app could be developed at a later stage to facilitate access to real-time data. These services will be environmentally friendly. Additionally, the increased focus on data suitability for the specific need (residential or commercial real estate) and overall readability will improve user experience. The aim is to facilitate the customer needs by the provision of a focused set of indicators for the educated data-driven decision-making. Advantageous effects of the invention are educated decision-making, data-driven assistance to decide, time savings on information collection, and a sense of confidence when making the decision.

DESCRIPTION [0006] This application is made for two innovative services for residential and commercial real estate respectively. The service is a digital report which provides key land-use indicators facilitating the data-driven decision-making of a customer.

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RESIDENTIAL DIGITAL REPORT [0007] The service is a residential digital report with the key land use indicators for the cadastral parcel of the land. This report will facilitate the property investor, or new home buyer, or tenant needs. Customer needs are related to the definition of residential use, i.e. how the residential real estate can be used. There are variations in terms of how each Australian state interprets residential use under the land use/planning legislation. This legislation varies from state to state in Australia. Below are some examples of the residential use definition:

[0008] The Tasmanian Planning Scheme (State Planning Provisions) describes sensitive use as a residential use or use involving the presence of people for extended periods except in the course of their employment such as a caravan park, childcare centre, dwelling, hospital or school.

[0009] The Victorian Planning system describes the residential use as a dwelling, a building used as a self-contained residence which must include a kitchen sink, food preparation facilities, a bath or shower, and a closet pan and wash basin. It includes outbuildings and works normal to a dwelling.

[00010] The Northern Territory Planning scheme describes “residential building” as a building or part of a building used or developed or proposed to be used or developed for a caretaker’s residence, independent unit, group home, hostel, hotel (where the hotel includes accommodation available to members of the public), motel, multiple dwellings, single dwelling or supporting accommodation.

[00011] The residential use includes some variations: visitor accommodation uses such as hotel or hostel, home occupation use, childcare center, hospital, etc. Further, the residential real estate can be used for the Airbnb listing. The Airbnb listing and data are commonly used for assessing the investment properties profitability, i.e. would the monthly income from Airbnb listing cover the monthly mortgage payment (financial gain or loss). However, residential real estate could be subject to susceptibility or/and vulnerability to

2019101193 02 Oct 2019 certain hazards, infrastructure, and socioeconomic factors. These factors are not usually assessed in the decision-making process when dealing with residential real estate. The planning use of a building allowed under the residential zoning such as childcare center or hospital requires more careful consideration on people's susceptibility or/and vulnerability to various factors.

[0012] The current data sources in Australia for digital reports are as follows. The data in Tasmania is derived mainly from the The List. The data in Victoria is derived mainly from the VicPIan. The data in NSW is derived mainly from the ePlanning Spatial Viewer. The data in South Australia is derived mainly from the Location SA Map Viewer. The data in Northern Territory is mainly derived from the Integrated Land Information System: I LIS. The data in Western Australia is derived from the PlanWA interactive planning map. Additional sources of nationwide data are the Australian Bureau of Statistics and the Australian Urban Research Infrastructure Network. Mostly the data sources described above are open and are under the Creative Commons Attribution License. The data sources can be changed/amended over time as well as associated licenses. The key land-use indicators described in this disclosure will remain unchanged (disregarding the changes in data sources) with some variations depending on data quality in each state. Data gaps or data unavailability could limit the data quality. These focused datasets for commercial and residential real estate can be reproduced in other countries such as the United States of America, the European Union, the People's Republic of China, etc. The data sources in other countries required for the production of these datasets will be different from Australia. As such, key indicators in datasets and their interpretations will remain the same with some variations depending on the state or country due to the fact that there is no global consistency among the data and its’ qualitative characteristics.

[0013] The residential digital report is specifically focused on the property investor’s, or new home buyer needs, or potential risks of a tenant when moving in another suburb, city, interstate, or internationally. There are three main topics in this dataset: hazards, infrastructure, and socioeconomic value. Table 1 represents key indicators for each topic based on the example of data derived from ‘The List’ in Tasmania.

TABLE 1 Methodology

	GIS layer /indicator	Variations ofthe Indicator	Interpretation	Potential icon
Hazards
1.1	Coastal Erosion Hazards Bands	1. High 2. Medium	1. The likelihood of coastal erosion is high	o
	20161201	3. Low	2. The likelihood of coastal erosion is medium
		4. Investigation	3. The likelihood of coastal erosion is low
			4. The likelihood of coastal erosion is under investigation
1.2	Coastal Inundation	1. High	1. The likelihood of coastal erosion is high
	Hazards Bands 20161201	2. Medium 3. Low
	2. The likelihood of coastal erosion is medium	-- - “

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		4. Investigation	3. The likelihood of coastal erosion is low 4. The likelihood of coastal erosion is under investigation
1.3	Coastal Projected Storm Tide	1. Storm Tide 1 % AEP2010 2. Storm Tide 1% AEP 2050 3. Storm Tide 1 % AEP 2100	1. The likelihood of occurrence of a flood once in 100 year in 2010 2. The likelihood of occurrence of a flood once in 100 year in 2050 3. The likelihood of occurrence of a flood once in 100 year in 2100
1.4	Fire History Impacted last 10 seasons	1. Bushfire Unknown category 2. Bushfire 3. Completed Planned Burn	1. The likelihood of occurrence of a bushfire 2. The likelihood of occurrence of a bushfire 3. The likelihood of occurrence ofthe planned burn

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1.5	Landslide Planning Map Hazard Band 20131022	1. Low 2. Medium 3. Medium Active 4. High	1. The area has no known landslides, however, it has been identified as being susceptible to landslide 2. The area has known landslide features, or is within a landslide susceptibility zone, or has legislated controls to limit disturbance of adjacent unstable areas 3. The area has known recently active landslide features. 4. The site is within a declared Landslip “A” area. All use and development require significant investigation and engineered solutions to mitigate the natural hazard. “A” Landslip areas are those where no more development is allowed.

1.6	Tasmanian Interim Planning Scheme Overlay Flood Risk Area	1. Areas covered by the flood risk overlay 2. All other areas	1. Areas prone to periodic flood 2. Areas are not covered by the flood risk overlay	ϊω.
1.7	Electricity Transmission Infrastructure Protection Code Overlays	1. Communications station buffer area 2. Substation facility buffer area 3. Inner protection area 4. Substation facility 5. Electricity transmission corridor	1. The residential use is vulnerable 2. The residential use is vulnerable 3. The residential use is vulnerable 4. The residential use is vulnerable 5. The residential use is vulnerable	€

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1.8

1.9

1.10

Gas buffer

Not available in open data Tasmania

Transport buffer

Not available in open data Tasmania

Tasmanian

Interim Planning

Scheme

Overlay

Attenuation code

1. Buffer area

2. Another area

1. The likelihood of the potential risk for the health

2. The area is not covered by the buffer from the attenuation

1.11 Any other applicable hazards

Infrastructure

2.1	Sewerage Serviced Land	1. Full service 2. No service	1. The land is fully serviced by sewage 2. The land is not serviced by sewage	N i 111 E It111 il
2.2	Water Serviced Land	1. Full service 2. No service	1. The land is fully serviced by water 2. The land is not serviced by water	JH 1
2.3	Internet NBN check address	1. Connected 2. Not connected	1. The property is connected to NBN (internet) 2. The property is not connected to NBN (internet)	I—Jo·
2.4	Gas check address	1. Connected 2. Not connected	1. The land has a connection to the gas pipe 2. The land has no connection to the gas pipe

2.5

Electricity

Available by call

1. Connected

2. Not connected

1. The property is connected to electricity

2. The property is not connected to the electricity

2.6

Facilities

1. Medical services

2. Emergency services

3. Government organisations

4. Education

5.

Accommodation

Facilities within a 5km radius from the subject land

6. Tourism

7. Transport

Other facilities

2.7	Road Centrelines	1. Primary Name 2. Transport Class 3. Authority 4. User Type 5. Surface Type	1. Road name 2. National-State Highway, Arterial Road, Local Road etc. 3. State Department, Council, Private, etc. 4. Public, Private, etc. 5. Sealed, Unsealed, etc.
2. 8	Public transport stops within a 500m radius	1. Public stops within 500m radius from the land parcel	1. The number and location of public transport stops within 500m radius is	J Sfijo ^o]
2.9	Nearest Supermarket	1. Coles 2. Woolworths 3. IGA 4. Aldi 5. Any other variation: Supa IGA, BI-LO,	1. Nearest Coles (distance km) 2. Nearest Woolworths (distance km) 3. Nearest IGA (distance km)

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		Coles Central, Star Mart, ShopRite, Friendly Grocer, Foodworks, etc.	4/ Nearest Aldi (distance km) Etc.
2.10	Garbage collection areas Available by call	Local Council Area - 1. serviced 2. not services	Municipality name 1. The door to door garbage collection 2. Another type of garbage collection specified by the municipality	tel
Socioeconomic Value
3.1	SEIFA Socioeconomic Disadvantage Australian Bureau of Statistics (SA1)-2016	Advantage/Disad vantage Percentile State 1. No data 2. 1-5% (Most disadvantaged) 3. 6-10%	Relative socio-economic advantage and disadvantage The area rank in terms of its’ relative socio-economic advantage. ABS definition “people's access to material and social

4. 11-15% 5. 16-20% 6. 21-25% 7. 26-30% 8. 31-35% 9. 36-40% 10.41-45% 11.46-50% 12. 51-55% 13. 56-60% 14. 61-65% 15. 66-70% 16. 71-75% 17. 76-80% 18. 81-85% 19. 86-90%

resources, and their ability to participate in society”. SA1- is the smallest unit for the release of census data % of disadvantage from 1 to 100 where 1 is the most disadvantaged and 100 is the most advantaged in Australia (national wide)

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		20. 91-95% 21.96-100 % Most advantaged
3.2	Authority Land Housing Tasmania	1. Authority land - Housing Tasmania 2. Another land	1. Public Housing land 2. Another land not related to public housing Check for all directly adjoining lots
3.3	Tasmanian Heritage Register	1. Tasmanian Heritage Register 2. Other property	1. The property listed in the State Heritage Register 2. The property not listed in the State Heritage Register Please note that LGA listings could be different from the state listings
S==J l=J
3.4	DoE Intake Areas	DoE Intake Areas	Primary Schools Intake areas	Saaa

		The list of primary schools in Tasmania
3.5	Waterway and Coastal Protection Area Guidance Map (the Natural Assets Code)	1. Buffer area 2. Wetland	1. Some development limitations could be imposed 2. Some development limitations could be imposed
3.6	Age, income, and spending ABS SSC or LGA level	1. Median age 2. Median weekly household income 3. Median monthly mortgage repayments 4. Median weekly rent 5. Top 3 employment industries	1. Median age 2. Median weekly household income 3. Median monthly mortgage repayments 4. Median weekly rent 5. Top 3 employment industries	o°o°o

2019101193 02 Oct 2019 [0014] The final residential digital report provided to the customer will contain only the simple indicator name (Landslide, Fire History, Sewerage, Water, etc.), associated icon, and the interpretation of this indicator applicability to the particular cadastral parcel in a simple/local language. The example of the final residential digital report provided to the customer is presented in Appendix 1. The decision-making process is conducted by the customer based on interpretations which are in the a simple/local language of key land use indicators and associated visualisations/icons. Data visualisations/icons assist decisionmaking as part of information that comes in a non-verbal format. This residential digital report is not legal advice. This report is a focused set of interpretations of key land use indicators to facilitate the decision-making of the customer, i.e. howto purchase/rent the right residential real estate with confidence in line with the particular customer needs.

[0015] The data from various data sources could be derived/gathered manually or with the use of API systems or other querying tools. The use of the API system will allow providing a one-click report to the customer downloadable via website or mobile up after the insertion/indication of the real estate address (the indication of the particular cadastral parcel). Interpretations and visualisations/icons could be changed depending on customers’ needs. Current icons are derived from Flaticon and are under the Creative Commons License attribution. Indicators, variations of indicators, and interpretation of indicators are subject to change depending on data available in each state or country, data gaps, data quality, and legislative and technological settings. The long-term objective is to achieve consistency among interpretations of key land use indicators nationally in Australia and internationally (globally). The mobile app could be designed at the later stage to provide the same land-use indicators in a form of real-time data.

COMMERCIAL DIGITAL REPORT [0016] The service is a commercial digital report matching keywords with possible commercial uses in the specific land-use/planning zone with keywords on business/commercial categories on Google My Business or another source of business/commercial categories for the cadastral parcel of the land. This report aims to facilitate commercial leasing, i.e. to help commercial real estate agencies to lease

2019101193 02 Oct 2019 commercial real estate. Multiple uses could be applicable for the one land-use/planning zone. For example, the Local Business Zone of the Dorset Interim Planning Scheme 2013 in Tasmania contains the following possible uses: business and professional services, natural and cultural values management, passive recreation, community meeting and entertainment, general retail and hire, hotel industry, research and development, utilities, vehicle fuel sales and service, visitor accommodation, bulky goods sales, educational and occasional care, emergency services, manufacturing and processing, residential, service industry, sport and recreation, storage, tourist operation, transport depot and distribution, utilities, and vehicle parking. It is evident that there are many variations of uses applicable for one zone.

[0017] The commercial digital report has a concept of urban clustering of economic activities behind it. This concept is related to agglomeration economies. The definition agglomeration economy is provided by Glaeser (2010) “Agglomeration economies are the benefits that come when firms and people locate near one another together in cities and industrial clusters”. Clusters are “a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities” (Porter, 2004). Therefore, the possible uses in the specific land use/planning zone and a business/commercial category could have a correlation, i.e. the indication/insight on how the intended commercial use could fit an existing business/commercial cluster in the chosen area. Then, the keywords of possible uses for the specific land parcel and keywords of business/commercial categories within the cluster (0.1km to unlimited radius) for the chosen area are highlighted to observe the correlation/match of potential commercial real estate uses. The example of commercial digital report is available as an Appendix 2. The example of correlation of keywords of possible uses and keywords of business/commercial categories is provided in Appendix 3.

[0018] The current list of sources containing the information on land-use/planning zones, associated uses, and overlays in Australia is as follows: Local Environmental Plans Planning Portal Department of Planning and Environment in New South Wales; Local Government Planning Schemes the Department of State Development, Manufacturing, Infrastructure and Planning in Queensland; Development Plans the Department of

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Planning, Transport, and Infrastructure in South Australia; Planning Schemes Online the Department of Transport, Planning and Local Infrastructure in Victoria; Local Planning Schemes the Department of Planning, Lands and Heritage in Western Australia; the Northern Territory Planning Scheme Northern Territory Government in Northern Territory; the Territory Plan Environment, Planning and Sustainable Development Directorate (Planning) Australian Capital Territory; and Planning Schemes at I Plan by Tasmanian Planning Commission in Tasmania. The planning legislation and government departments are subject to constant change. Alternatively, the information on land-use/planning zones, associated uses, and overlays can be derived from the data sources mentioned in paragraph [0012], [0019] This commercial digital report could be reproduced in any country where land-use zoning with the list of land-use/planning uses exist. Google My Business data or alternative sources of data on business/commercial categories are available in many countries. An example of an alternative source of data on business/commercial categories could be 2GIS or Yandex Maps. The commercial report provides an insight on how to determine which use will be more successful and commercially viable in the specific location (cluster), i.e. to demonstrate the correlation of possible allowed under planning regulations uses with the existing thriving businesses in the chosen location (cluster). This commercial digital report is not legal advice.

[0020] Additionally, this commercial digital report provides information on location, planning scheme zones and overlays, key development characteristics, transportation analysis, and the links to the latest development application.

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Citation List

ABS. (2019). Australian Bureau of Statistics, Australian Government. Retrieved from https://www.abs.gov.au/

AURIN. (2019). Australian Urban Research Infrastructure Network. Retrieved from https://aurin.org.au

Glaeser, E. L. (2010). Introduction. Retrieved from http://www.nber.org/chapters/c7977.pdf

ILIS. (2019). Integrated Land Information System. Retrieved from http://www.ntlis.nt.gov.au/forum/ntlis_documents/ILIS ePlanning Spatial Viewer. (2019). ePlanning Spatial Viewer. Retrieved from https://www.planningportal.nsw.gov.aU/spatialviewer/#/find-a-property/address

Location SA Map Viewer. (2019). Location SA Viewer. Retrieved from http://location.sa.gov.au/

PlanWA (2019). Interactive planning map. Retrieved from https://espatial.dplh.wa. gov.au/PlanWA/lndex. html?viewer=PlanWA

Porter, Μ. E. (2004). Location, Competition, and Economic Development: Local Clusters in a Global Economy. Economic Development Quarterly, 14(1), 15-34.

The List. (2019). LISTmap. Retrieved from https://www.thelist.tas.gov.au/app/content/home

Vicplan. (2019). Vicplan - Maps and spatial data. Retrieved from https://mapshare.vic.gov.au/vicplan/

Claims (5)

1. What is claimed is:

   1. A land-use information for commercial and residential real estate market is provided to a customer in a form of a digital report (a residential digital report and a commercial digital report respectively) or/and in the form of real-time data through mobile app, which are accessible via various devices, are in a local/simple language, and incorporate visualization/icons to facilitate a data-driven decision-making of a customer by a focused set of indicators for a cadastral parcel of land.
2. 2. The residential digital report of claim 1 comprising an information on cadastral parcel location (cadastral parcel’s address, property ID, title reference, and local government area), the information on hazards (coastal erosion, coastal inundation, coastal storm tide, fire history, landslide, flood risk area, electricity transmission protection, attenuation, etc.), the information on infrastructure (sewerage, water, internet NBN, gas, electricity, facilities within 0.1km to unlimited radius, access road, public transport stops within 0.1km to unlimited radius, nearest supermarket, garbage collection, etc.), and the information on socioeconomic value (socio-economic disadvantage which is defined by the Australian Bureau of Statistics as “people’s access to material and social resources, and their ability to participate in society,” public housing, heritage register, school intake area, waterway and/or coast, park/reserve, etc.) facilitates the data-driven decision making of a person dealing with residential-real estate.
3. 3. The residential digital report of claim 1 wherein a data is captured for the specific cadastral parcel of land, and data is captured within a specified radius (0.1km to unlimited) from the particular cadastral parcel based on the Geographic Information Systems (GIS) query made manually or with use of API systems or other querying tools, and these data indicators are presented as visualisations/icons with the indicators’ interpretations provided in a local/simple language.

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4. 4. The commercial report of claim 1 comprising of the information on location (cadastral parcel’s address, property ID, and title reference), land-use/planning zones and overlays, uses, development, transport, business/commercial cluster, and link to past applications aims to combine, compare, and analyse land-use/planning uses allowed under landuse/planning zone and applicable overlays for the specific cadastral parcel, and business/commercial categories provided by alternative source of data and reflecting on clustering in specific area, in order to facilitate the decision-making of a person dealing with commercial real estate.
5. 5. The commercial digital report of claim 1 wherein the identical and similar keywords in land-use/planning uses and business/commercial categories are highlighted which result in data-driven decision-making insights for a person dealing with commercial real estate.