earticle

영어

This study aims to review the basic discussion for the construction of office index. Research index and evaluation benchmark index differ in sources of raw input data as well as the optimal index construction methodologies between the two types of indices. Based on the examination of NCREIF Property Index and IPD, the study suggest the future references for the only official office index in Korea provided by the Ministry of Land Transport and Marine Affairs. The discussion about what factors of value change should be included in office index is needed to be based upon the appraisal theory. Also research on how to minimize the appraisal smoothing bias in the office index is needed because appraisal-based index has a tendency to have an appraisal smoothing bias resulted from the attribute of office appraisal and smoothing bias which may incur a mistake in decision-making process related with real estate market movement and real estate return. This research can contribute to construct and to make use of office index efficiently.