Statistical processing

Source data

The calculation of the market value of real estate is based on information contained in the Register with Official Real Estate Valuations. The Register with Official Real Estate Valuations and the Building and Real Estate Register and the Business Register are used to define data and to the calculation of the market value. People statistics are used to group persons who owns real estate into families and wealth statistics are used for debt components.

Frequency of data collection

Annually

Data collection

Data from registers

Data validation

Non-matched records are controlled in the merged registers. There are made tabulations at different levels of data to check the level of calculated market value on macro level (e.g. tables on developments on municipal or regional level). There are no similar estimates for the market value of real estate, so the results at the macro level cannot be compared with other sources. The project has emphasized the quality-control of data during the linkage of information from the four registers. It is somewhat possible to compare the developments with the price indices for real estate. Although the price indices are on a more aggregated level.

Data compilation

There is two separate ways of calculating the market value, one for owners of real estate and one for shareholders in cooperative dwellings. To calculate the market value for owners of real estate, information about the official real estate valuations and the actual selling prices for the sold property makes it possible to calculate an average adjustment factor within a geographical area. The market value of the property that has not been sold is calculated by multiplying the adjustment factor with the official real estate valuations. In the model the adjustment factor is assumed to be identical for properties of the same type that are located within the same geographic area. The smallest geographic area in the model is the postal code. The model assumes the adjustment factor to depend on property type, geographic location and the property's price level.

The official real estate valuations are the basis for calculating the market value of cooperative dwellings as well. The valuation is distributed among the dwellings in the cooperative building. From the sales value of the cooperative dwelling certificate a correction factor is calculated, based on official real estate valuation. The sales price of the certificate contains information about the market value and debt including interest rate swaps of the entire cooperative building.

The market value of the cooperative dwelling is a quarterly statistic, the sales data for entire buildings are updated each quarter but the stock is based on the previous year. Sales data for the individual cooperative dwelling comes from a voluntary survey, which is conducted at least one time every year. This survey is necessary since there is no central registry of sales of cooperative dwellings in Denmark.

In a cooperative building without debt the correction factor will be similar to the correction factor for real estate in the same area. Debt in cooperative would reduce the correction factor. Cooperative buildings with a high level of debt will have a correction factor close to zero.

Adjustment

Not relevant for this statistics.