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RBA Glossary definition for appreciation

appreciation – An increase in the value of an asset. In foreign-exchange terms, it is a relative increase in the value of one currency compared to another.

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Estimates

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
0.7. 0.7. Depreciation (d). 1.1. 1.1. Expected appreciation (π). 1955–2014 average. ... This can be seen in the break-even rates of appreciation shown in Figure 3.
https://www.rba.gov.au/publications/rdp/2014/2014-06/estimates.html

Sensitivity

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
Were this rate of appreciation to continue, it would imply overvaluation of 32 per cent. ... We show break-even appreciation rates for varying lengths of tenure in Figure 7.
https://www.rba.gov.au/publications/rdp/2014/2014-06/sensitivity.html

Appendix A: Data Details

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
A.2 Expected Appreciation. The appropriate assumption for expected capital gains will depend on the purpose of the analysis. ... To measure overvaluation, or to decide on whether to buy a house, the appreciation rate that should be expected is relevant.
https://www.rba.gov.au/publications/rdp/2014/2014-06/appendix-a.html

Conclusion

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
If this rate of appreciation is expected to continue then our estimates suggest that houses are fairly valued (see Table 1 or Figure 3). ... Fifth, and perhaps of most use to potential owners, would be guidance regarding likely capital appreciation.
https://www.rba.gov.au/publications/rdp/2014/2014-06/conclusion.html

Introduction

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
We decompose housing values into contributions from rents, interest rates, expected appreciation and other factors, which we hope will be directly useful to potential buyers. ... For example, we find that the boom in house prices in 2002–2003 can
https://www.rba.gov.au/publications/rdp/2014/2014-06/introduction.html

Data Summary

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
Our estimates of depreciation come from Stapledon (2007). We measure capital appreciation on a constant-quality net-of-depreciation basis (to be comparable with rental data, in principle), which means the ... Whereas the above elements of the user cost
https://www.rba.gov.au/publications/rdp/2014/2014-06/data-summary.html

The User Cost of Housing

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
Strictly speaking, flows cannot be constant if there is real capital appreciation, which involves changing relative prices. ... A more important simplification is that we take rent and expected capital appreciation as exogenous.
https://www.rba.gov.au/publications/rdp/2014/2014-06/the-user-cost-of-housing.html

Decomposing Changes in House Prices

12 Sep 2014 RDP 2014-06
Ryan Fox and Peter Tulip
As was often suggested at the time (see Bloxham, Kent and Robson (2010, Section 4.1)), most of the increase in prices can be attributed to higher expected capital appreciation. ... This reflects a decline in mortgage rates (contributing 5 percentage
https://www.rba.gov.au/publications/rdp/2014/2014-06/decomposing-changes-in-house-prices.html