Another indicator of the development of real estate prices is
housing prices. In the previous discussion, we brought forward that
urban quality would also be reflected in higher real estate prices of
housing.1 To analyse this indicator, we looked at the transaction costs in owner-occupied housing. These reflect market developments
earlier than the value of the existing housing stock. We used
the average selling price of all the housing sold in a certain year and
area, including both newly-built and pre-existing housing. This average
was weighted on the basis of the number of transactions in each
postal code area, as the selling price for each individual dwelling was
not available. Since our housing price data were based on a large
number of transactions, they showed less fluctuation than office
rents; it was therefore not necessary to apply a moving average.