Swiss residential property price index: The use of geolocalised information for quality adjustment in location

The Swiss Federal Statistical Office (FSO) is currently working on implementing an official residential property price index (RPPI). One of the biggest challenges is adjusting for the quality differences in properties from different survey periods. To counter this challenge, the FSO plans to develop a hedonic repricing model, to be used in combination with stratification. Hedonic models allow us to evaluate properties’ individual attributes as well as their overall quality. Property characteristics include structural variables (e.g. number of rooms, net living area and age), usage variables (primary or secondary residence) and location variables (e.g. distance to public transport, view, exposure and noise pollution). Location characteristics are collected from geolocalised data made available by the Swiss government.

Source : Linkedin – David Fischbach