The purpose of this statistic is to show trends in prices in the first stage of commercial transactions for the construction sector, i.e. producers' selling price, ex VAT for single family houses. This statistic have been compiled since 2019.
The Producer Price Index for Construction of Dwellings is a quarterly measurement of prices related to the construction of new dwellings relating to the first commercial transaction. The price of the land is not included in this price and neither are taxes (VAT). At this time only an index for one-family houses is produced.
Every quarter approximately 350 prices are collected from a sample of relevant construction companies in Denmark. Prices are collected through an electronic reporting form. The collected prices are merged with relevant information from the the administrative register BBR which contains information on every building in Denmark. The index is calculated by use of a hedonic regression where different information (characteristics of the single dwelling) is used.
The Producer Price Index for Construction of Dwellings is a business cycle indicator which is used to analyze economic developments. Furthermore, the index is used a deflator in the Danish National Accounts for constant price calculations.
The quarterly non-response rate is 0 and more than 99 percent of the reported prices are used for the calculation of the index. This, together with the coverage (approx. 30 percent of all newly build one-family houses are covered by the sample) should result in a rather goo accuracy.
These statistics are published quarterly, approx. 3-4 month after the end of the reference period.
The statistic follows international standards and is therefore comparable with similar statistics from other countries.
The statistics is published in News from Statistics Denmark and is available from Statbank Denmark (table PRIS90).