Vigers Hong Kong Property Index Series Objectives ▪ As a complement to the existing property information related to the Hong Kong property market; ▪ To better inform public of the ever-changing residential market as Vigers has selected residential districts or areas which will be impacted by the territories’ infrastructure project, i.e. the MTR network expansion; ▪ To continually get updates from the property market Methodology ▪ The hedonic model of price measurement is based on the assumption that an asset’s value can be derived from the value of its different characteristics. The price of a home will therefore depend on the values that buyers have placed on both qualitative and quantitative attributes. ▪ Hedonic regression can estimate the implicit market value of each attributes of a property by comparing sample home prices with their associated characteristics, on a monthly basis. ▪ Logarithm of transaction price will be used as independent variable for the regression model, whilst logarithm of dependent variables, such as building’s age, floor numbers, floor areas, and regional, district and estate building names will be selected in the model as controls for quality mix, apart from the time dummy variables (which are the most important part of the model), being employed. ▪ Indices estimation is finally completed by taking the exponential of the calendar month fixed effects, with the base period — January 2000 to be 100, using the EViews software. ▪ For dataset starting from March 2013 onwards, another set of restated index series (with net floor areas rather than gross floor areas ones) will also be tabulated. The Property Prices Indexes 1. Kowloon East Index 2. Shatin Central Link Index 3. Luxury Index 4. Mass Residential Indexes (with four regional indices, i.e. Hong Kong, Kowloon, New Territories West and New Territories East) Kowloon East Index Kowloon East Index covers three selected districts: ◼ Kwun Tong District (Kowloon Bay, Ngau Tau Kok, Kwun Tong, Lam Tin, Cha Kwo Ling, Yau Tong, and Lei Yue Mun) ◼ Wong Tai Sin District (San Po Kong, Wong Tai Sin, Choi Hung, Wang Tau Hom, Diamond Hill, Tsz Wan Shan, and Ngau Chi Wan) ◼ Kowloon City District (Hung Hom, To Kwa Wan, Kowloon City, Homantin, Kowloon Tong, and Beacon Hill) Shatin-Central Link Index Shatin-Central Link Index covers four districts which will mostly be impacted by the ongoing MTRC network expansion: ▪ Tai Wai ▪ Diamond Hill ▪ Homantin ▪ Hung Hom or To Kwa Wan Luxury Index Luxury Index covers luxury properties (estates and single block of buildings, and flat size >1,000 sq ft) located in following selected districts in which there are high potential that luxury properties are situated. ▪ Happy Valley ▪ Kowloon Tong ▪ Mid-Levels West ▪ Mid-Levels Central ▪ Mid-Levels East ▪ Peaks ▪ Pokfulam ▪ Repulse Bay or Shouson Hill ▪ Kau To Shan ▪ Stanley ▪ Tai Tam Mass Residential Indexes ◼ One major index - MI_ALL and four sub-indices MI_HK, MI_KLN, MI_NTE, and MI_NTW, covering active mass estates across Hong Kong ◼ MI_HK: Hong Kong (The Merton, Queen's Terrace, The Zenith, Illumination Terrace, City Garden, Provident Centre, Island Place, Nan Fung Sun Chuen, Kornhill, Taikoo Shing, Lei King Wan, Grand Promenade, Les Saisons, Heng Fa Chuen, Island Resort, Baguio Villa, Chi Fu Fa Yuen, Aberdeen Centre, South Horizons, and Sham Wan Towers) ◼ MI_KLN: Kowloon (Mei Foo Sun Chuen, Banyan Garden, Liberte, Metro Harbour View, Island Harbourview, Park Avenue/Central Park, Parc Oasis, Whampoa Garden, Laguna Verde, Telford Garden, Tak Bo Garden, Amoy Garden, Laguna City, and Sceneway Garden) Mass Residential Indexes ◼ MI_NTE: New Territories East (Shatin Centre, Garden Rivera, Belair Garden, City One Shatin, Castello, Jubilee Garden, Royal Ascot, Ocean View, Vista Paradiso, Bayshore Tower, Sunshine City, Ma On Shan Centre, Villa Athena, Monte Vista, Classical Gardens, Tai Po Centre, Serenity Park, Dawning Views, Flora Plaza, Fanling Centre, Royal Green, Sheung Shui Centre, La Cite Noble, Metro City, Ocean Shores, Park Central and East Point City) ◼ MI_NTW: New Territories West (Wonderland Villas, Luk Yeung Sun Chuen, Discovery Park, Riviera Garden, Allway Garden, Belvedere Garden, Lido Garden, Sea Crest Villa, Hong Kong Gold Coast, Miami Beach Towers, Pierhead Garden, Sun Tuen Mun Centre, Tai Hing Gardens, Yoho Town, Sun Yuen Long Centre, The Parcville, Kingswood Villas, Mayfair Gardens, Greenfield Garden, Tsing Yi Garden, Tierra Verde, Caribbean Coast, Coastal Skyline, and Park Island) Vigers Appraisal and Consulting Limited Vigers Research Tel : +852 6309 5880 Email : [email protected] Address : 27/F, Standard Chartered Tower Millennium City 1 388 Kwun Tong Road Kowloon, Hong Kong.