Abstract
The present paper highlights the importance of house price index methodology and relevance of studying price indices within a metropolitan region. Two approaches based on hedonic approach have been compared. Though the results are inconclusive as to whether explicit time variable hedonic approach is superior to cross section hedonic approach or vice versa but there are evidences that would suggest that cross section approach is better. The results are compared with indices developed by other methodologies like improved repeat sales method and official methodology of SCB. The index obtained by us are very similar to others but the quarterly price increases as calculated by us lags the other two.
This paper further tries to explain the intra-metropolitan price variations based on population, employment and tenureship trends. A ripple effect is also noticed where the prices in one zone leads the others.
