Hong Kong's Definitive Property Price Indices
Why property price indices ?
- In Hong Kong, the ability to observe the rapid changes in the prices and measure the pulse of the property market is of paramount importance.
- Investors, potential home-buyers and sellers are in need of such information.
What are CCI and CCL ?
- The Centa-City Index (CCI) is a monthly index based on all transactions records as registered with the Land Registry to reflect property price movements in the previous 1-2 months.
- The Centa-City Leading Index (CCL) is a weekly index based on current contract prices in Centaline Property Agency Ltd. transactions.
- Both indices use July 1997 as the base period. The indices in the base period equal 100.
- The CCI is updated on the 18th of each month.
- The CCL is updated every Friday after 4:00 pm.
Why do we need a CCL in addition to CCI ?
- As land registration takes time, any index based on the Land Registry's sale and purchase data inevitably could not provide the most up-to-date information. On the other hand, index based on the current contract price data is a good indicator of the most recent price movements in property agent market share, thus the Centaline transaction data are able to reflect the market situation.
- Given the volatility of the property market, it is imperative to have an up-to-date indicator of the most recent movement of property prices.
How are the CCI and CCL constructed ?
- The indices are based on the "adjusted unit prices" of a number of constituent estate in Hong Kong.
- Regression models are used to adjust the transaction prices of estates to take into account the relative effects on the properties' values of such attributes as floor area, years of occupancy, location, direction, view, floor levels, etc.
- The use of the adjusted unit prices reconciles the problems that arise in simply taking the average of the "raw" transaction unit price, where the mix of properties being bought and sold can vary greatly in terms of quality.
The indices and related information can be obtained at http://www.centanet.com/cci.htm
|Project team members|
|Prof. L. K. Chan||Dr. CHAN Yan Chong||Prof. HUI Yer Van||Dr. H. P. Lo|
|Dr. TSE Siu Keung||Prof. WAN Tze-Kin Alan||Prof. YAU Kai Wing Kelvin|
For further information on the indices, please contact email@example.com