House Price Index by Central Bank

by Aqaraturk
2017-11-21
House Price Index by Central Bank-media

The House Price Index -which covers the whole country- is constructed for the purpose of monitoring price movements in the Turkish housing market.
This index is constucted by Central Bank of Turkey based on the houses subject to sale.
Price data related to all houses subject to sale, regardless of the construction year are used to develop the house price indices.
In the housing market, as the prices of properties become available when they are actually sold, house prices indicated in valuation reports prepared at the time of approval of individual housing loans are used as a proxy for price. Valuation reports which form a basis for housing loans are prepared by real estate appraisal companies.
The actual sale of the property and utilization of the loan is not required and all houses appraised are included in the scope.
There are several sub-indices of this housing index:
House Price Index (HPI):
House price index constructed by using the stratified median price method for all the houses covering the whole country. New Housing Price Index (NHPI):
Price index constructed by using the stratified median price for houses built in the current and the previous years covering the whole country.
Existing Housing Price Index (EHPI):
Price index constructed by using the stratified median price method for the houses built before the current and the previous years covering the whole country.
Hedonic House Price Index (HHPI):
House price index for the whole country constructed by hedonic regression method in which prices are adjusted for quality changes related to observed housing characteristics. These indices gives a clear idea about the developments in the Turkish housing sector. The data can be found on the Central Bank of Turkey's Website. The Hedonic House Price Index (HHPI) (2010=100), which measures quality adjusted price changes by controlling the observable characteristics of the houses in Turkey stands at 208.87 in August 2017 by a monthly growth of 0.48 percent. In August 2017, the HPPI decreased monthly by 0.14 and 0.09 percent in İstanbul and Ankara respectively and increased by 1.33 percent in İzmir. These three major cities recorded an annual growth of 5.88, 7.72 and 16.12 percent respectively.

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