New Dutch House Price Index Launched: Forward Trading to Become a Possibility
19 november 2009
Tradition, in association with Dutch fund manager SBS Investments, is pleased to announce the launch of the definitive Dutch house price basket index, the HPI-N (the House Price Index of the Netherlands).
The index components are the benchmarks of the National Association of Estate Agents, the Central Bureau of Statistics benchmark (Dutch government's Land Registry) and ABF Valuation's Automated Valuation Model benchmark.
The HPI-N is a non-weighted average of the three benchmarkers and ensures the widest possible data-scoop, which results in an index that truly represents the average house price in the Netherlands
The new index with its three comprehensive contributing component benchmarkers represents the dominant owner/occupier aspect of the Dutch housing market which sets the price for the institutional sector
The index will be set annually. Monthly estimates will be published by the index's calculation agent ABF Valuation, which may later foster house price forward transactions and facilitate other risk management tools.
Tradition used a similar 'basketing' approach in the energy markets and the so called 'API' indices, as a result, became the centre of the Atlantic basin coal industry. The API now benchmark coal mines, power stations and billions of dollars of forward transactions
Bron: Tradition, November 2009