Transaction-Based Indices

Chau, K. W., Wong, S. K., Liang, J., McCluskey, W., & Cunningham C. (2018) Chapter 10: Transaction Based Indices in Routledge Companion to Real Estate Investment, MacGregor, B., Schulz, R., Green, R. and Newell, G (Eds), Routledge, 192-212.

32 Pages Posted: 24 Mar 2021

See all articles by K.W. Chau

K.W. Chau

The University of Hong Kong - Ronald Coase Centre for Property Rights Research - Economics

Siu Kei Wong

University of Hong Kong

Jiancong Liang

Ronald Coase Centre for Property Rights Research

William McCluskey

affiliation not provided to SSRN

Ciara Cunningham

affiliation not provided to SSRN

Date Written: February 16, 2021

Abstract

Due to the heterogeneous nature of real estate, the construction of a transaction based real estate price index is not a trivial task. This paper introduces the concept of a constant quality real estate price index that reflects the general price trend that is not affected by the quality of the real estate transacted. The principles of four commonly used methods for constructing such index are discussed. The implementation of the same method may be different across markets due to differences in data constraints and market characteristics. Cases from Hong Kong and Northern Ireland are used to demonstrate their uses in practice.

Keywords: Real estate price index, constant quaity index, repeat sales index, herdonic price index, transaction-based index

JEL Classification: C18, C29, R30, R39

Suggested Citation

Chau, Kwong Wing and Wong, Siu Kei and Liang, Jiancong and McCluskey, William and Cunningham, Ciara, Transaction-Based Indices (February 16, 2021). Chau, K. W., Wong, S. K., Liang, J., McCluskey, W., & Cunningham C. (2018) Chapter 10: Transaction Based Indices in Routledge Companion to Real Estate Investment, MacGregor, B., Schulz, R., Green, R. and Newell, G (Eds), Routledge, 192-212., Available at SSRN: https://ssrn.com/abstract=3786911

Kwong Wing Chau (Contact Author)

The University of Hong Kong - Ronald Coase Centre for Property Rights Research - Economics ( email )

Ronald Coase Centre for Property Rights Research
Pokfulam Road
Hong Kong
Hong Kong
(852)28592128 (Phone)
(852)25599457 (Fax)

Siu Kei Wong

University of Hong Kong ( email )

Pokfulam Road
Hong Kong, HK
China

Jiancong Liang

Ronald Coase Centre for Property Rights Research ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

William McCluskey

affiliation not provided to SSRN

Ciara Cunningham

affiliation not provided to SSRN

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