Housing Finance, Prices, and Tenure in Switzerland

Bourassa, Steven C.; Hoesli, Martin; Scognamiglio, Donato

doi:10.2139/ssrn.1407609

Cited by 18 publications

(22 citation statements)

References 11 publications

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“…The Swiss house price indexes are the IAZI/CIFI hedonic indexes based on transactions data for properties where debt financing has been used (Bourassa, Hoesli, and Scognamiglio, ). The indexes encompass transactions for both houses and condominiums and a large number of attributes are used to control for the quality of properties.…”

Section: Empirical Strategymentioning

confidence: 99%

Measuring House Price Bubbles

Bourassa

Hoesli

Oikarinen

2016

Real Estate Economics

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Using data for six metropolitan housing markets in three countries, this paper provides a comparison of methods used to measure house price bubbles. We use an asset pricing approach to identify bubble periods retrospectively and then compare those results with results produced by six other methods. We also apply the various methods recursively to assess their ability to identify bubbles as they form. In view of the complexity of the asset pricing approach, we conclude that a simple price‐rent ratio measure is a reliable method both ex post and in real time. Our results have important policy implications because a reliable signal that a bubble is forming could be used to avoid further house price increases

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Section: Empirical Strategymentioning

confidence: 99%

Measuring House Price Bubbles

Bourassa

Hoesli

Oikarinen

2016

Real Estate Economics

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“…Although this database is not publicly accessible, it has been used for several recent academic contributions (Bourassa et al, 2008(Bourassa et al, , 2010(Bourassa et al, , 2011Constantinescu, 2010;Chaney & Hoesli, 2010). The IAZI data also form the basis for the construction of hedonic price indices that are published by the Swiss stock exchange (the SIX Swiss Capitalization Rate Determinants 11 Exchange), and for automated hedonic appraisal models (Scognamiglio, 2000) that are used for mortgage lending purposes.…”

Section: Transaction-based and Appraisal-based Data Sourcesmentioning

confidence: 99%

Transaction-Based and Appraisal-Based Capitalization Rate Determinants

Chaney¹,

Hoesli

2012

SSRN Journal

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This paper contributes to the debate about capitalization rate determinants by comparing the driving factors of appraisal-based cap rates with those of transaction-based cap rates. By using a rich database of real estate transactions in Switzerland for the period of 1985-2010, we identify several property-specific variables that have not been used in prior research and that increase the explained portion of the cap rate variance by as much as 10 percentage points. The results show that compared to investors, appraisers overweight factors that they can easily observe when they appraise a property, at the cost of variables related to growth expectations and the opportunity cost of capital. This has two implications. First, as the easily observable factors hardly change over time, while the latter variables change frequently and significantly, it provides new evidence that may add to the appraisal-smoothing discussion.Second, investors put less emphasis on factors that are diversifiable, which suggests that they favor a portfolio perspective, whereas the focus of the appraisers is more on the individual property level.

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“…While homeownership rates as measured by owner‐occupied housing are comparatively low in Switzerland, a large proportion of Swiss rental units are owned by institutional investors (see ). In the Canton of Zurich average rates of owner‐occupied housing are close to 50% with large heterogeneity across municipalities.…”

Section: Data and Estimation Strategymentioning

confidence: 99%

Consequences of Debt Capitalization: Property Ownership and Debt versus Tax Choice

Stadelmann

Eichenberger

2012

Southern Economic Journal

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Public debts capitalize into property prices. Thus, they are a burden to the present generation who owns the devalued property. This largely neglected fact has important consequences for the tax versus debt choice. Property owners suffer more from the debt burden and, thus, have a stronger preference for tax financing of government spending than tenants. As a consequence of the resulting democratic struggle between property owners and tenants, higher property ownership rates in a jurisdiction lead to less debt financing. We provide empirical support for this hypothesis by analyzing a cross section of the 171 communities in the Swiss Canton of Zurich in the year 2000.

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Housing Finance, Prices, and Tenure in Switzerland

Cited by 18 publications

References 11 publications

Measuring House Price Bubbles

Measuring House Price Bubbles

Transaction-Based and Appraisal-Based Capitalization Rate Determinants

Consequences of Debt Capitalization: Property Ownership and Debt versus Tax Choice

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