scholarly journals More Reliable Land Price Index: Is There a Slope Effect?

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 261
Author(s):  
Yi Huang ◽  
Geoffrey Hewings
Keyword(s):  
Land Use ◽  
Price Index ◽  
House Price ◽  
Land Values ◽  
Price Indices ◽  
Land Price ◽  
House Price Indices ◽  
Physical Attributes ◽  
Constant Quality

This paper focuses on the physical attributes of land that intrinsically limit land use and possibly affect land values. In particular, we investigate if the slope of a land does decrease its price and investigate the role of land slope in forming more reliable constant-quality land price indices and aggregate house price indices. We find that, while land slopes do decrease the land price per unit, they have a small effect on the quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.

scholarly journals Is There a Slope Discount?

2021 ◽  
Author(s):  
Yi Huang ◽  
Geoffrey Hewings
Keyword(s):  
Land Use ◽  
New Zealand ◽  
House Price ◽  
Land Values ◽  
Price Indices ◽  
Land Price ◽  
House Price Indices ◽  
Physical Attributes ◽  
Constant Quality

This paper focuses on the physical attributes of land that intrinsically limit land use and possibly affect land values. In particular, we investigate if the slope of a land does decrease its price and investigate the role of land slope in forming more reliable constant-quality land price indices and aggregate house price indices. We find that, while land slopes do decrease the land price per unit, they have a small effect on the quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.

scholarly journals A RE-ASSESSMENT OF HOUSE PRICE INDICES: EVIDENCE FROM THE SPANISH MARKET

2018 ◽  
Vol 23 (1) ◽  
pp. 23-35 ◽  
Author(s):  
Paloma Taltavull de la Paz ◽  
Stanley McGreal
Keyword(s):  
Housing Market ◽  
Structural Changes ◽  
Price Index ◽  
House Price ◽  
Housing Quality ◽  
Quality Changes ◽  
Large Database ◽  
Price Indices ◽  
House Price Indices ◽  
Hedonic Index

This paper using evidence from the Spanish housing market contributes significantly to the debate concerning the different results obtained from house price indices depending on the method used to build the index. Utilising a large database over the period 1994 to 2012, the paper constructs a time dummy hedonic index (HD) and an imputed hedonic index using a Laspeyres approach (HI), and compares the different effect on the price index evolution. The paper discusses control by quality changes and identifies those attributes experiencing structural changes over the analysis period, identified by the HI index but not by the HD index. Results indicate that changes in quality stem from socio-demographic conditions rather than changes to housing quality (other than size). The paper also shows that improvements in neighbourhood quality rather than change in a ‘typical house’ affects house price and argues that these considerations are important in both the method selected to calculate house price indices and the application of the methodology to estimate price changes.

scholarly journals Estimating repeat sales residential price indices for Krakow

2018 ◽  
Vol 9 (1) ◽  
pp. 55-69 ◽  
Author(s):  
Michał Głuszak ◽  
Jarosław Czerski ◽  
Robert Zygmunt
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Price Index ◽  
Metropolitan Areas ◽  
House Price ◽  
Small Sample ◽  
Main Concern ◽  
Repeat Sales ◽  
Price Indices ◽  
House Price Indices

Research background: There are several methods to construct a price index for infrequently traded real estate assets (mainly residential, but also office and land). The main concern to construct a valid and unbiased price index is to address the problem of heterogeneity of real estate or put differently to control for both observable and unobservable quality attributes. The one most frequently used is probably the hedonic regression methodology (classic, but recently also spatial and quantile regression). An alternative approach to control for unobservable differences in assets’ quality is provided by repeat sales methodology, where price changes are tracked based on differences in prices of given asset sold twice (or multiple times) within the study period. The latter approach is applied in renown S&P CoreLogic Case-Shiller house price indices. Purpose of the article: The goal of the paper is to assess the applicability of repeat sales methodology for a major housing market in Poland. Previous studies used the hedonic methodology or mix adjustment techniques, and applied for major metropolitan areas. The most widely known example is the set of quarterly house price indices constructed by NBP — especially for the primary and secondary market. The repeat sales methodology has not been adopted with significant success to date — mainly because of concern regarding relative infrequency of transactions on the housing market in most metropolitan areas (thus a potentially small sample of repeated sales). Methods: The study uses data on repeat sales of residential transactions in Krakow from 2003 to 2015. We apply different specifications of repeat sales index construction and compare respective values to the hedonic price index for Krakow estimated by NBP. Findings & Value added: Findings suggest that repeat sales house sales indices can be used to track price dynamics for major metropolitan areas in Poland. The study suggests problems that need to be addressed in order to get unbiased results — mainly data collection mechanism and estimation procedure.

scholarly journals Measuring heterogeneity of house price developments in Hungary, 1990–2016

2018 ◽  
Vol 68 (3) ◽  
pp. 377-414
Author(s):  
Ádám Banai ◽  
Nikolett Vágó ◽  
Sándor Winkler
Keyword(s):  
Time Series ◽  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Price Indices ◽  
Regional Heterogeneity ◽  
Economic Cycles ◽  
House Price Indices ◽  
Long Time ◽  
Index Family

This study presents the detailed methodology of generating house price indices for the Hungarian market. The index family is an expansion of the Hungarian housing market statistics in several regards. The nationwide index is derived from a database starting from 1990, and thus the national index is regarded as the longest in comparison to the house price indices available so far. The long time series allow us to observe and compare the real levels of house prices across economic cycles. Another important innovation of this index family is its ability to capture house developments by regions and settlement types, which sheds light on the strong regional heterogeneity underlying the Hungarian housing market.

Construction of real estate price indices for developing housing markets

2017 ◽  
Vol 10 (3) ◽  
pp. 371-383 ◽  
Author(s):  
Anthony Owusu-Ansah ◽  
William Mark Adolwine ◽  
Eric Yeboah
Keyword(s):  
Real Estate ◽  
House Price ◽  
Temporal Aggregation ◽  
Price Indices ◽  
Content Type ◽  
Real Estate Price ◽  
Aggregation Effect ◽  
Developing Markets ◽  
House Price Indices ◽  
Real Estate Price Indices

Purpose The purpose of this paper is to test whether temporal aggregation matters when constructing hedonic house price indices for developing markets using Ghana as a case study. Design/methodology/approach Monthly, quarterly, semi-yearly and yearly hedonic price indices are constructed and six null hypotheses are tested using the F-ratios to examine the temporal aggregation effect. Findings The results show that temporal aggregation may not be a serious issue when constructing hedonic house price indices for developing markets as a result of the smaller sample size which these markets normally have. At even 10 per cent significance level, none of the F-ratios estimated is statistically significant. Analysis of the mean returns and volatilities reveal that indices constructed at the lower level of temporal aggregation are very volatile, suggesting that the volume of transactions can affect the level of temporal aggregation, and so, the temporal aggregation level should not be generalised, as is currently observed in the literature. Originality/value The diversification importance of real estate and the introduction of real estate derivatives and home equity insurance as financial products call for the construction of robust and accurate real estate indices in all markets. While almost all empirical research recommends real estate price indices to be conducted at the lower level of temporal aggregation, these studies are largely conducted in developed markets where transactions take place frequently and large transaction databases exist. Unfortunately, little is known about the importance of temporal aggregation effect when constructing indices for developing real estate markets. This paper contributes to fill these gaps.

scholarly journals Daily House Price Indices: Construction, Modeling, and Longer-run Predictions

2015 ◽  
Vol 31 (6) ◽  
pp. 1005-1025 ◽  
Author(s):  
Tim Bollerslev ◽  
Andrew J. Patton ◽  
Wenjing Wang
Keyword(s):  
House Price ◽  
Price Indices ◽  
House Price Indices
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