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.
In this respect, it is highly recommended that price indexes be constructed consistent with prospective United Nations recommendations (due next year) on residential property price indexes, and that these indexes be published regularly in a timely manner. The Japanese price-to-rent ratios presented before are calculated from large data sets using hedonic regression methods, and are available monthly with approximately two weeks’ lag.