Residential Property Price Index

This course, presented by the Statistics Department, presents the concepts, data sources and compilation methods used for the production of the Residential Property Price Index (RPPIs). Emphasis is given to the importance of evaluating data sources for compiling RPPIs in terms of coverage, timeliness, richness in terms of supporting an appropriate compilation method, suitability of the price measure, and weighting. Trade-offs involved in selecting data sources are considered, as are strategies for longer-run development of data sources. The methodological component of the course emphasizes the property-mix problem: a change in the mix of properties transacted each period can bias measures of change in average prices. Mix-adjustment by stratification and hedonic regression are the main methods used to solve this issue and interactive workshops deal with these topics. The course follows the principles of the 2013 Handbook on RPPIs published by Eurostat, International Labor Organization (ILO), IMF, Organization for Economic Co-operation and Development (OECD), United Nations Economic Commission for Europe (UNECE), and the World Bank.

• Explain aim, scope and role of the RPPIs in analyzing developments in the property market.
• Identify and assess relevant data sources for the RPPI.
• Explore best practice for the compilation of a price index for the residential property.