A Study on the Construction of Land Price Index: Using Public Announcement of Land Prices of Seoul

Abstract

In Korea, a lot of statistical information on the real estate markets has been constructed and provided in the forms of many statistics to the public. But most of them are on the residential, office, etc., and there remains a dearth of statistical information on the land market. Set in the high demand for the development of the land market index, this study constructed the Laspeyres' chained land price index using annually publicly announced land prices in Seoul. Additionally to improve the timeliness of the statistical information, this study converted the annual index to the monthly index using benchmarking method. At the same time, this study found out that there were statistically significant differences between the two low-level residential indexes as well as between the monthly Laspeyres' chained land price index and the government's official statistics.