A New Approach for Constructing Home Price Indices in China: The Pseudo Repeat Sales Model

摘要: Due to data and methodology constraints, there is a lack of good quality-controlled residential price indices publicly available in China. New home sales account for quite large share total Chinese cities (87% 2010). As result, the standard repeat approach cannot be employed, as new housing units only appears once on market. The hedonic method may more suitable principle, but it vulnerable an omitted variables problem which significant due extremely dynamic urban spatial structure development rapid building quality improvement. Taking advantage uniquely scale homogeneous nature cities, we develop ―pseudo sale‖ model (ps-RS) construct reliable newly-constructed homes. homes are developed form complexes. Each complex by single developer, often contains several phases number high-rise buildings. unit within same shares location community attributes, well similar physical characteristics (such type, architecture style, age, etc). Of course, still important differences size, bedrooms, floor level high-rise, so forth. Based specific criteria, match two very three versions defined matching space: complex, phase or individual building, respectively. We thus create ―pseudo-pair‖. able generate vast such pairs, many than traditional models. By regressing differential across time between each pseudo-pair onto within-pair differentials