UPDATE: Adding the code I used to create the custom post type and taxonomies.

function create_post_type_properties() {
    $labels = array(
        'name'                  => __('Properties', 'properties'),
        'singular_name'         => __('Property', 'properties'),
        'add_new'               => __('Add New', 'properties'),
        'add_new_item'          => __('Add New Property', 'properties'),
        'edit'                  => __('Edit', 'properties'),
        'edit_item'             => __('Edit Property', 'properties'),
        'new_item'              => __('New Property', 'properties'),
        'view'                  => __('View Property', 'properties'),
        'view_item'             => __('View Property', 'properties'),
        'search_items'          => __('Search Properties', 'properties'),
        'not_found'             => __('No Properties found', 'properties'),
        'not_found_in_trash'    => __('No Properties found in Trash', 'properties'),
        'parent_item_colon'     => '',
        'menu_name'             => 'Properties'
    );

    $args = array(
        'labels'        => $labels,
        'description'   => 'Properties & property specific data',
        'public'        => true,
        'menu_position' => 5,
        'supports'      => array('title', 'editor', 'thumbnail', 'custom-fields'),
        'taxonomies'    => array(''),
        'has_archive'   => true,
        'can_export'    => true,
        'menu_icon'     => plugins_url( 'image.png', __FILE__ ),
    );

    register_post_type( 'properties', $args );
}

/* Create custom taxonomy (type) for properties */
function property_type_taxonomy() {
    $labels = array(
        'name'              => _x( 'Property Types', 'taxonomy general name' ),
        'singular_name'     => _x( 'Property Type', 'taxonomy singular name' ),
        'search_items'      => __( 'Search Property Types' ),
        'all_items'         => __( 'All Property Types' ),
        'parent_item'       => __( 'Parent Property Type' ),
        'parent_item_colon' => __( 'Parent Property Type:' ),
        'edit_item'         => __( 'Edit Property Type' ), 
        'update_item'       => __( 'Update Property Type' ),
        'add_new_item'      => __( 'Add New Property Type' ),
        'new_item_name'     => __( 'New Property Type' ),
        'menu_name'         => __( 'Property Types' ),
    );

    $args = array(
        'labels'        => $labels,
        'show_ui'       => true,
        'show_tagcloud' => false,
        'hierarchical'  => true
    );

    register_taxonomy( 'property_type', 'properties', $args );
}

/* Create custom taxonomy (location) for properties */
function property_location_taxonomy() {
    $labels = array(
        'name'              => _x( 'Property Locations', 'taxonomy general name' ),
        'singular_name'     => _x( 'Property Location', 'taxonomy singular name' ),
        'search_items'      => __( 'Search Property Locations' ),
        'all_items'         => __( 'All Property Locations' ),
        'parent_item'       => __( 'Parent Property Location' ),
        'parent_item_colon' => __( 'Parent Property Location:' ),
        'edit_item'         => __( 'Edit Property Location' ), 
        'update_item'       => __( 'Update Property Location' ),
        'add_new_item'      => __( 'Add New Property Location' ),
        'new_item_name'     => __( 'New Property Location' ),
        'menu_name'         => __( 'Property Locations' ),
    );

    $args = array(
        'labels'        => $labels,
        'show_ui'       => true,
        'show_tagcloud' => false,
        'hierarchical'  => true
    );

    register_taxonomy( 'property_location', 'properties', $args );
}