An Application of House Sales Methodology on Turkish Real Estate

Abstract

The application of house sales methodology in Turkey was investigated where House Price Index (HPI) was used as the dependent variable against New House Price Index (NHPI), Hedonic House Price Index (HHPI), and Existing House Price Index (EHPI). The data used were sourced from the online publications of Turkey statistical bulletin (TUIK) from 2010M1 to 2018M12. Descriptive analysis and regression method were employed, and the study found that new house price index has a positive and significant effect on house price index in Turkey and when NHPI increases with one unit, the house price index will positively increase with the value of 0.416993. The coefficient value of hedonic house price index is 0.115156 with p-value of 0.0640 implying that HHPI has a positive effect but it is not significant at 5% level of significance. The coefficient value of existing house price index is 0.543676 and its p-value is 0.0000 showing that EHPI has a positive and significance effect on house price index in Turkey. It was concluded new house price index and existing house price index could contribute significantly to the house pricing in Turkey.