The purpose of this study is to estimate the hedonic price index of secondhand condominiums while taking into account seasonal sample selection bias and structural changes, using the 23 wards of Tokyo as a subject. When housing price indices are estimated using a hedonic price model, the problem of temporal sample selection bias in addition to changes in the housing market structure should be considered. We propose an overlapping-period hedonic model (OPHM: this model was proposed by Ono, et al first), which can accommodate seasonal sample selection bias and structural changes. In addition, we estimate housing price indices for the 23 wards of Tokyo from 1986 through 2006, and demonstrate biases in price indices because of differences in the functions used in the models. Results of the estimation using the OPHM demonstrate that the structure of the housing market changes with time, and these changes occur continuously with time. It is also demonstrated that structurally restricted indices that do not account for structural changes involve a large time lag compared with indices that do account for structural changes during periods with significant price fluctuations. This study proposes a method of estimating hedonic housing price indices under the conditions of successively added data and structural changes.
Change in house price structure with time and housing price index -Centered around the approach to the problem of structural change-
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