Real Estate Price Indices in Hong Kong

Authors: K. W. Chau, S. K. Wong, C. Y. Yiu and H. F. Leung

Start Page: 337
End Page: 356
Volume: 13
Issue Number: 3
Year: 2005
Publication: Journal of Real Estate Literature

Abstract: This paper reviews and compares various existing price index sources in Hong Kong,
which is known to be one of the most active real estate markets in the world. It also introduces a new source of transaction-based price index constructed using the repeat sales method. This new index series is not only useful for local real estate practitioners and investors, but it also provides a platform for researchers to study general issues related to the measurement of direct real estate returns. With the availability of such a rich set of data, more rigorous empirical studies can be conducted to enhance our understanding of the behavior of the direct real estate market, as well as the properties of price indices computed by different methods.