Whereas information about price-to-earnings ratios is easily available in stock markets, corresponding (properly quality-adjusted) price-to-rent ratios in property markets are not easily available. This has, and still does pose a serious problem for macro-prudential policy, especially for emerging economies where property markets are becoming increasingly important.
To have timely information about proper price-to-rent ratios, or at least price indexes that are reliable and internationally comparable, is not only important for assessing the magnitude of financial imbalances that need rectifying, but also vital to communicate with the public, both inside and outside of the country.