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Australian Consumer Price Index: Concepts, Sources and Methods, 2009
New house purchases
6.24 The weight given to house purchase should reflect net acquisitions by households, and expansion of the housing volume by alterations and additions. Sales of houses that take place between households are excluded, so that the weights relate only to net additions to the housing stock arising from household purchases from other sectors (e.g. from businesses such as builders and developers).
6.25 An additional factor that arises with houses is that as well as providing shelter to their owners, they include an investment element because they typically appreciate over time. For the purposes of the CPI, the cost of housing should reflect only the shelter component. A common approach is to regard the cost of the land as the investment component, and the cost of the structure as the shelter (or consumption) component.
6.26 The net expenditure on house acquisition was estimated by applying the average value of private dwelling completions by capital city for 2003-04 published in Building Activity Australia (cat. no. 8752.0) to the net change in the number of owner-occupier households. The average value estimates for completions only include the cost of construction, and therefore enable the land component in house prices to be excluded from the weighting base. The net change in the number of owner-occupier households was derived by calculating the average annual net change in owner-occupier dwellings between the 1996 Census and the 2001 Census. This revised method of calculating the net change in the number of owner-occupier households was considered to be more accurate than the use of projected growth rates which was used in the 14th series CPI. Subsidies paid to first home buyers as part of the Commonwealth Government's First Home Owners' Scheme were treated as negative expenditure and subtracted from the expenditures recorded for house acquisition.
6.27 The alterations and additions component of house purchase includes any changes in the physical attributes of owner-occupied houses such as extensions, renovations, addition of insulation, and similar improvements to the structure. For this component, HES data are considered adequate.
http://www.abs.gov.au/ausstats/a ... &num=&view= |
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