New multi-dwellings house price index (discontinued), 2nd half-year 2005

The Norwegian State Housing Bank provides the data used in this index. The data are based on information from loan applications received by the bank. The index only includes projects for which loans have been granted.

Sub-indices for two different housing types are calculated using the hedonic method. The housing types are (1) houses with two dwellings, row houses, linked houses and houses with three or four dwellings and (2) apartment buildings with five or more dwellings. Some characteristics of the buildings are taken into account in the analysis (e.g. size, geographic location and share of communal area). The type of garage and whether the house has a lift are not taken into account.

The sub-indices are weighted into an index for all multi-dwelling houses. The weights are the proportion of utility floor space per housing type in the period 2000-2004. The weights are based on Statistics Norway's building statistics.

The price used in the index is the price that the final owner has to pay for the dwelling, excluding the cost of the land. Prices are based on loan applications and are estimates of the final costs, not the actual final cost. Comparisons reveal insignificant differences between the estimates of the final costs and the final costs.

The index is comprised of multi-dwelling housing projects for which the Norwegian State Housing Bank has granted loans during the six-month reference period. Loans are normally granted before or when the building commences.