Australian Bureau of Statistics
6464.0 - House Price Indexes: Concepts, Sources and Methods, Australia, 2009
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 14/12/2009
|Page tools: Print Page Print All RSS Search this Product|
CHAPTER 3 HISTORICAL BACKGROUND
3.7 Four important aspects of the data series were identified as needing to be changed or improved:
3.8 The need to re-examine the weighting methodology of the index was not explicitly identified in the review, but was undertaken as part of the ABS' established index review strategy.
3.9 As a result of the implementation of the review recommendations, the HPI is now released closer to the reference quarter. The time at which prices are recorded (the pricing point) has been changed to the date of exchange of contracts, and the effects of compositional change have been reduced through an improved stratification method. The underlying weights in the index were updated to reflect stock weights, based on the latest Census house count data available.
3.10 The ABS decided to concentrate initially on improving the index for detached houses only. The aim of developing new indexes for other residential dwellings (units, townhouses, apartments etc.) was viewed as a longer term objective. Likewise, the ABS decided it could not yet move towards producing rest of state HPIs each quarter.
3.11 A number of users also expressed a strong desire for the ABS to release average prices (mean and/or median) for each city in addition to the price index. The ABS feels that it is not possible to publish stratified price level measures that will be meaningful. However, unstratified or 'raw' measures of median house prices have been made available. In addition, the number of established houses transacted in each city each quarter is available. These results are published in Tables 7 and 8 of 6416.0, and are revised each quarter as necessary as additional data are acquired.
3.12 The September quarter 2005 issue of 6416.0 was the first to incorporate the changes outlined above. For a more detailed discussion on the outcomes of this review, refer to Information Paper: Renovating the Established House Price Index (cat. no. 6417.0).
3.13 A second review of the HPI commenced in 2007. As a result, the method of stratification used to compile the index was refined and the housing stock weights were updated using quantity data from the 2006 Census of Population and Housing (the most recent Census). These changes were introduced in the December quarter 2008 issue of 6416.0.
3.14 Details of the concepts, sources and methods underlying the compilation of the current HPI series are described in the following chapters.
3.15 The current weights, based on the 2006 Census, will be updated once data become available from the 2011 Census. At that time the ABS will also assess the performance of the stratification method. In addition, the ABS will investigate ways to update the weighting between Census collections: besides ensuring that weights keep up to date with changes in the stock of houses (such as development of new suburbs), it would also provide a more frequent opportunity to implement improvements in stratification.
3.16 The ABS is also planning to address one improvement identified by the 2004 review which has not yet been acted upon: that the coverage of the index be expanded to include "other dwellings". The aim of providing rest of state indexes remains a longer term objective. For the immediate future, geographic scope continues to be restricted to the eight capital cities, and calculation of a weighted average.
1 State/Territory is referred to as 'State' for the remainder of this publication. <back
2 These data sources are referred to as 'VGs' for the remainder of this publication. <back
These documents will be presented in a new window.
This page last updated 11 December 2009