The Peking University--Lincoln Institute Center for Urban Development and Land Policy and the Hang Lung Center for Real Estate at Tsinghua University recently launched a new initiative to better track the price of housing in rapidly urbanizing China. The China Quality-Controlled Urban Housing Price Indices were announced late last year at a press conference in Beijing attended by media, researchers, and real estate professionals.
The urban housing hedonic price indices were constructed for eight urban housing markets, including Beijing, Shanghai, Tianjin, Shenzhen, Chengdu, Dalian, Wuhan, and Xi’an. The joint team worked for the last four years to develop the indices, with original housing price data provided by a partner, Shenzhen World Union Appraisal Co. Ltd. The core methodology for compiling the indices is a variant of the hedonic repeated-sale hybrid model, first developed in the Case-Shiller Home Price Indices in the U.S. During the construction of the indices, several international experts offered technical advice, including Karl “Chip” Case, co-founder of the Case-Shiller Index, former Lincoln Institute president Gregory K. Ingram, Joyce Man, former director of the China program and now director of the Indiana University Research Center for Chinese Politics and Business , David Geltner, and Daniel McMillen, a visiting fellow at the Lincoln Institute. The indices, available online, will be updated on a quarterly basis and will be expanded to cover more urban housing markets where data become available.