Swiss Journal of Economics and Statistics

, Volume 144, Issue 4, pp 607–630 | Cite as

Indirect Construction of Hedonic Price Indexes for Private Properties

Open Access


This paper analyzes the construction of price indexes for condominiums and single family houses in Switzerland over the period 1985 to 2004 using the indirect method. We find, that the pooling of the data, i.e. direct indexes with fixed hedonic prices, are good models for average properties but can be biased for the indexation of non-average properties. Therefore indirect index construction using predictions for specific properties based on annual equations is recommended.

Based on differentiation of forty regions it is shown, that indexes vary from region to region, but show a comparable general path between 1985 and 2004. In recent years prices for single family houses raised in the large urban areas and tourist resorts but, due to big land reserves, were stable or even declined in smaller urban and semi-urban as well as in rural areas. Price paths for condominiums are generally comparable to those of single family houses with the big difference, that over the last three years prices were raising in most of the regions.


Hedonic price private property direct index indirect index 


C31 R31 


  1. ARE (2005), Raumentwicklungsbericht 2005, Ed.: Eidgenössisches Departement für Umwelt, Verkehr, Energie und Kommunikation; Bundesamt für Raumentwicklung, Bern.Google Scholar
  2. BAK & Fpre (2007), Wohnimmobilien 2007–2022, Ed.: BAK Basel Economics and Fahrländer Partner, Basel, Zürich.Google Scholar
  3. Bender, A. R., B. Gacem and M. Hoesli (1994), «Construction d’indices immobiliers selon l’approche hédoniste», in Finanzmarkt und Portfoliomanagement, vol. 8, no. 4, pp. 522–533.Google Scholar
  4. Bignasca, F., et al. (1996), Immobilienmarkt Zürich: Immobilienpreise und Bauinvestitionen unter der Lupe, Ed.: Zürcher Kantonalbank, Zürich.Google Scholar
  5. Boskin, Michael J., et al. (1996), (Advisory Commission To Study The Consumer Price Index); Toward a More Accurate Measure of the Cost of Living: Final Report to the Senate Finance Commission, Washington.Google Scholar
  6. Brachinger, H. W., B. Schips and W. Stier (1999), „Revision Landesindex 2000: Expertise zur Relevanz des Boskin-Reports für den schweizerischen Landesindex der Konsumentenpreise“, in BFS aktuell, Neuchâtel.Google Scholar
  7. Cox, T. F., and M. A. A. Cox (1994), Multidimensional Scaling, Monographs on Statistics and Applied Probability 59, London.Google Scholar
  8. Fahrländer, S. (2001a), „Hedonische Handänderungspreisindizes: Konzeption und Methodik“, Ed. Wüest & Partner, Zürich (mimeo).Google Scholar
  9. Fahrländer, S. (2001b), „Performance von Wohneigentum“, in Immo-Monitoring 2002, Band I, Wohnungsmarkt, Ed.: Wüest & Partner, Zürich.Google Scholar
  10. Fahrländer, S. and U. Hausmann (2001), „Ronco ist nicht Zug, Zug ist nicht Genf: Grosse Unterschiede in der regionalen Wertentwicklung von Wohneigentum“, in Neue Zürcher Zeitung, no. 151, Zürich.Google Scholar
  11. Fahrländer, S. (2006), “Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties”, in Swiss Journal of Economics and Statistics, vol. 142 (4), pp. 501–528.Google Scholar
  12. Fahrländer, S. (2007), Hedonische Immobilienbewertung: Eine empirische Untersuchung der Schweizer Märkte für Wohneigentum 1985 bis 2005, München.Google Scholar
  13. Greene, W. H. (1997), Econometric Analysis, 3rd edition, London etc.Google Scholar
  14. Hampel F. R., et al. (1986), Robust Statistics: The Approach Based on Influence Functions, New York.Google Scholar
  15. Hastie, T., and R. Tibshirani (1990), Generalized Additive Models, London.Google Scholar
  16. Hastie, T., R. Tibshirani and J. Friedman (2001), The Elements of Statistical Learning, New York.Google Scholar
  17. Hoesli, M., P. Favarger and C. Ciacotto (1997), “Real Estate Price Indices and Performance”, in Swiss Journal of Economics and Statistics, vol. 133, pp. 29–48.Google Scholar
  18. Maurer, R., M. Pitzer and S. Sebastian (2000), Konstruktion transaktionsbasierter Immobilienpreisindizes: Theoretische Grundlagen und empirische Umsetzungfür den Wohnungsmarkt in Paris,
  19. Murray, J., and N. Sarantis (1999), “Price-Quality Relations and Hedonic Price Indexes for Cars in the United Kingdom”, in International Journal of the Economics of Business, vol. 6, no. 1, pp. 5–27.CrossRefGoogle Scholar
  20. NZZ (2005), „Keine Immobilienblase in der Schweiz: Lokal deutliche Preissteigerungen bei Eigenheimen“, in Neue Zürcher Zeitung, Nr. 285, 6 december 2005, p. 25.Google Scholar
  21. Rousseeuw, P. J., and A. M. Leroy (2003), Robust Regression and Outlier Detection, New York.Google Scholar
  22. Salvi, M., P. Schellenbauer and H. Schmidt (2004), Preise, Mieten und Renditen: Der Immobilienmarkt transparent gemacht, Ed.: Zürcher Kantonalbank, Zürich.Google Scholar
  23. Scognamiglio, D. (2000), Methoden zur Immobilienbewertung im Vergleich: Eine empirische Untersuchung für die Schweiz, Dissertation, Bern.Google Scholar
  24. SIA (2003), Schweizer Norm 504 416: Flächen und Volumen von Gebäuden, Zürich.Google Scholar
  25. Törnqvist, L. (1936), “The Bank of Finland’s Consumption Price Index”, in Bank of Finland Monthly Bulletin, vol. 10, pp. 27–33.Google Scholar
  26. Wolverton, M. L., and J. Senteza (2000), “Hedonic Estimates of Regional Constant Quarterly House Prices”, in JRER, no. 3.Google Scholar

Copyright information

© Swiss Journal of Economics and Statistics 2008

Authors and Affiliations

  1. 1.Fahrländer Partner AGZürichSwitzerland

Personalised recommendations