House Price Index, 3rd quarter 2016: Quarterly change 0,2%

According to preliminary estimate of the Statistical Service, the House Price Index (HPI) for the third quarter of 2016, amounts to 87,76 units. Compared to the second quarter of 2016, the index increased by 0,2% while compared to the corresponding index of the previous year, the index decreased by 3,3%.

METHODOLOGICAL NOTES

Definition

House Price Index (HPI) is a quarterly index which measures the change in the average prices of residential dwellings. It captures all types of residential properties, both new and existing. The land component of the residential property is included.

Data source

The data source used for both, indices and weights, is the Department of Lands and Surveys, Ministry of Interior. The data cover all areas which are under the control of the government of the Republic of Cyprus.

Data compilation

The data are stratified into two strata; old and new dwellings. For each stratum a rolling window hedonic regression model is used in order to calculate the sub-indices. Then, the sub-indices are weighted based on the sum of the value of the properties of each startum in the previous year.

Base year

The base year is 2010=100.

Data revision

The variables of the model have been redefined in order to be available over time and ensure the comparability of the indices. Therefore, the indices for the period between the first quarter of 2015 and the second quarter of 2016 have been revised and a break in the series in the first quarter of 2015 occured.

Data are initially marked as provisional and are revised as soon as as new information is available.

Source: Press and Information Office