Understanding property indices

Keeping tabs on property price movements is crucial on several fronts.

For many, residential property is their single largest purchase, for which they require accurate and reliable price information. Property is also a major component on households' balance sheets.

Policymakers use property price movements as one indicator of macroeconomic activity, as well as to measure risks in the financial system; similarly, banks and insurers use property values to underwrite mortgages and risks.