A comparative analysis of Dutch house price indices

Several house price indices exist for the Netherlands. These different indices arise from different sources and index construction methodologies. In this paper we analyze indices from the Dutch Association of Real Estate Brokers and Real Estate Experts, the Statistics Netherlands, and two consultancy firms. First we discuss the index construction methodologies used. Next we analyze and compare the statistical characteristics of these indices on a national and regional level and per house type. Finally we test for statistical differences between the indices. Large differences are found in reliability, sample representativeness and statistical characteristics. We conclude by drawing a number of conclusions regarding the most appropriate index and level of specification (by region and type) to be used in risk analyses by property investors like housing corporations.