Property Prices Index Numbers and Derived Indices

Marina Ciuna, Francesca Salvo, Manuela De Ruggiero

    Risultato della ricerca: Articlepeer review

    20 Citazioni (Scopus)

    Abstract

    Purpose – A useful instrument to understand and examine the inner workings of the property tradeis devising index numbers of property prices based on historical sequences of market prices.The present work aims at the definition of index numbers of property prices, proposing an innovativemethodology compared with what usually recurs in literature. The purpose of this paper is to discussthese issues.Design/methodology/approach – The analysis proposed, based on the mechanisms of formationof stock indices, investigates the analogies between stock and property information, according to thepeculiarities of the property trade, leading to a methodology approach, derived from Simple PriceIndex Method, able to consider possible anomalies in the collected sample of purchase prices, usingweighting coefficients based on reliability coefficients of sale prices of properties.Findings – The novel approach proposed has led to the definition of a original methodology useful toappraise property price index numbers and other derived indicators, effective for interpreting andidentifying real estate market dynamics in a given area of study, regarded as a standard estimatingmethodology applicable to any geographical context and kind of property.Practical implications – Methodology proposed in this work is useful to revalue real estate salesprice and to consider presence of anomalous sales price in property samples.Originality/value – The calculation of index numbers of prices is usually based on Simple PriceIndex Methods. Literature shows large use of different methods, such as Repeat Sales Method, HedonicPrice Method, Repeat Value Model. The present work propose an innovative methodology ableto detect the presence of possible anomalous market prices in the representative sample, using anappropriate vector of weights in order to take into account the level of reliability of market data.
    Lingua originaleEnglish
    pagine (da-a)139-153
    Numero di pagine15
    RivistaProperty Management
    Volume32
    Stato di pubblicazionePublished - 2014

    All Science Journal Classification (ASJC) codes

    • ???subjectarea.asjc.1400.1401???
    • ???subjectarea.asjc.2000.2003???

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