Price index for new multi-dwellings

Abstract

Within the frames of the project of establishing a price index for new multidwellings, a survey for the collection of data has was conducted. Data have been collected from 2011, with a “test” quarter in 2010. Based on the data material, we have constructed a price model that adjust for quality differences, for small houses (semi-detached houses, row houses etc.) and dwellings in blocks of flats. The model adjusts for area, ownership, price zones, garage, floor for flats and some important interactions. The results show that there has been an increase in the prices for new multi-dwellings of 27 per cent in the period from the 1st quarter of 2011 to the 4th quarter of 2015. In the initial phases data for detached houses were collected in order to explore the possibilities to include them in the survey, but it turned out that they were highly underrepresented in the data material. However, the already existing output price index for new detached houses has been used to obtain a separate index for detached houses. An outline of the methodology for the aggregated index for new dwellings is given.