Index Investing: From Theory to Practice · Dr MAI Huu Minh, TRAN Phan Bao Ngoc & HUYNH Nguyen Quoc BuuChapter 30 of 37 · Module 7: Latest index trends and innovations
CHAPTER 30
Housing and Real Estate Indexes
House prices, repeat sales, hedonic models, REIT indexes and tokenised property
Opening question
“Everyone says apartment prices in Hanoi went up 20% last year. Up 20% compared with what — and how would anyone actually know?”
In this chapter
- Why housing is the hardest major asset to index
- Five methods: median, mix-adjustment, hedonic regression, repeat sales and appraisals
- A worked example of composition bias and a small repeat-sales index
- The main house price indexes in the US, UK, Asia and the BIS database
- Commercial property indexes and the problem of appraisal smoothing
- Listed real estate: REIT indexes and how they compare with direct property
- Investable exposure: futures, REIT ETFs, tokenised property and home-equity products
- Vietnam's emerging housing data, and an NXW design for a Hanoi and Ho Chi Minh City apartment index
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This chapter is in the full book
Chapter 1 is free to read online. The full text of chapter 30 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Index Investing: From Theory to Practice (Volume 1, NXW Investment Library).
Read Chapter 1 freeGet the full book — [email protected]Sections of this chapter
30.1 Why housing is hard to index
30.2 Five ways to measure house prices
30.3 Worked example: composition bias and a five-pair repeat-sales index
30.4 The major house price indexes
30.5 Commercial real estate and the smoothing problem
30.6 Listed real estate: REIT indexes
30.7 Investable housing exposure
30.8 Uses: macroeconomics, mortgages and policy
30.9 Asia and Vietnam
30.10 A checklist for any property index