Dokumentation og international benchmarking af bygge - Danmarks ...

Bilag 3.2.3.International experiences with output price indicesfor construction, Hedonic method – Norway andSwedenIntroductionObjectiveThe main objective of the section is to describe hedonic methods for thecalculation of output price indices for construction in Norway and inSweden.Both Norway and Sweden are using the Hedonic method to calculate anoutput price index that reflects the price development for constructionactivities. One of the indices used in Norway is called “new detachedhouses”. The equivalent index in Sweden is called “building price indexfor dwellings”.Users and applicationsNorway - The new detached house index has been used since 1989 as aninvite by The Norwegian Financial Services Association (FNH). The priceindex is currently financed by FNH. They use the index to regulate theinsurance premium basis for residential buildings. In addition, NorwegianState Housing Bank and other financial institutes use the index to analyzeand monitor price /cost changes. Norwegian Statistics, on the other hand,uses the index to estimate output prices to deflate national accounts andto estimate the output of construction activities.Sweden - The building price index for dwellings has been calculated since1968 and is widely used. The Ministry of Finance, the Ministry of Environmentand the Ministry of Enterprise, Energy and Communications usethe index to monitor the development and costs of the construction ofnew housing. The main purpose is thus to highlight and evaluate the effectsof the housing policy. The National Institute of Economic Researchuses the index to estimate the investment in housing and to make forecastson future investments. The Swedish Board of Housing, Building andPlanning use the index to follow-up the cost development and whenevaluating the effects of the housing policy and forecasts made. Finally,Statistics Sweden uses the index to estimate the investment in housingand to deflate national accounts.Similarities and differenceswith other statisticsStatistics Norway produces another similar output price index for construction,“new multi-dwelling houses”. The new detached house indexslightly differs from the index for new multi-dwelling houses. The latterincludes costs such as architectural costs, connection to road, water andsewer services, duties and administrative fees, interest on building loansand VAT. In addition, the new detached house index measures the price atthe time of completion, while this index includes prices collected at differentpoints of time. Similar to the new detached house, the index for multi-90