Centa-City Index
           Hong Kong's Definitive Price Indices

Why Property Price Indices?

* Investors and potential homebuyers are in need of indicators to study the current movement of propety prices in Hong Kong. The creation of the "Centa-City Index" aims to provide such information to the public as a source of reference on trends in Hong Kong's property market.

* The " Centa-City Index " is a monthly index based on all transaction records as registered with the Land Registry to reflect property price movements in previous months.

* The " Centa-City Leading Index " is a weekly index based on the current contract prices in Centaline Property Agency Limited transactions that monitors the up-to-date property price variations.

* As land registration takes time, any index based on the Land Registry's sale and purchase price data inevitably cannot provide the most up-to-date information. Index based on preliminary contract price data is a good indicator of the most recent price movements in property. Centaline Property Agency Limited has more than 20% of the property agent market share, thus the Centaline transaction data are able to reflect the market situation.

  

Adjusted Unit Price of an Estate

* Definition: Unit price = Transaction price per square foot.

* Adjusted unit price of an estate is the average of unit prices after removing the effects of attributes such as views, directions, floor levels, etc in a given period.

* Regression analysis is used to determine the effect of each attribute on property prices.

* The use of adjusted unit price reconciles problems that arise in taking the average of the "raw" transaction prices, where the mix of properties being bought and sold vary greatly in terms of quality.

* The latest adjusted unit price can be used for performing the up-to-date property price valuation.

Centa-City Index (CCI)

* The Property Price Index comprises a number of constituent estates.

* July 1997 is used as the base period of the index. The index in the base period equals 100.

*A property price index can be calculated by aggregating the prices of the constituent estates using the formula

Centa-City Index(CCI) for a month

engformula1.gif (5941 bytes)

* An estate is considered for inclusion as a constituent estate if

-it has a high transaction value;
-it has a large number of transactions;
-it has been in the market for at least 12 months after occupancy; and
-it is representative of the region.

* The market value of a constituent estate is the product of the total saleable area and the adjusted unit price.

* Other sub-indices of different categories, such as estate indices, district indices, and the luxury property index, are constructed by aggregating the adjusted unit prices of the constituent estates in that category.

Centa-City Leading Index (CCL)

* The first week of July 1997 is used as the base period of the index.

Centa-City Leading Index(CCL)for a week

engformula2.gif (5822 bytes)

How to access the indices?

* Indices for the preceding
weeks are updated and
released to the mass media
every Friday after 4:00pm. 

Contact Information

* For further information on the
property indices, please contact

Email:
centaresearch@mail.centanet.com