Estimating buildings, other structures
and land in the perspective of compiling
balance sheets by institutional sector
Giuseppe Cinquegrana
Researcher
National Accounts directorate
Istat
OECD Working Party - Paris, 15 October 2008
1
Assets (ESA1995)
•
Buildings:
Dwellings (AN1111)
Non-residential buildings (AN11121)
•
Other structures (AN11122)
•
Machinery and equipment (AN1113)
•
Land (AN211):
Underlying buildings and structures (AN2111)
Underlying under cultivation (AN2112)
•
Consumer durables
2
Dwellings
•
Dwellings (AN1111) (DW)
•
Gross Fixed Capital Formation series in DW
(GFCF DW)
net of the value of the underlying land
•
Perpetual Inventory Method (P.I.M.)
•
Gross Fixed Capital Stock in DW (GFCS DW)
3
New methodology to estimate
the stock of Dwellings
Main sources:
ISTAT
14th Population and Dwellings Census, 2001
OMI
Observatory of the Real Estate Market
CRESME
Centre for Social and Economic Research
on Construction and Territory
4
New methodology to estimate
the Stock of Dwellings
Years 2005-2006
•
Stock of Dwellings :
DW x
AS x PRICE (per m2)
DW: number of Dwellings
AS: Average Surface (m2)
•
market price :
it includes the value of the
land underlying dwellings
5
Number of dwellings [ DW ]
• DW t = DW t-1+ NC t
1. DW t-1 : number of dwellings for year t-1
2. NC t : number of new dwellings for year t
(CRESME).
Starting point :
DW 2001
source: 14th Population and Dwellings Census
ISTAT, 2001
6
AVERAGE SURFACE (m2)
• total gross surfaces (or commercial surfaces ) (m2)
of dwellings by region
• (source: OMI, year 2005-2006)
It includes:
1. The inside surface of the rooms,
2. the homogenised surface of the accessory
areas
7
PRICE per m2 :
• the purchase price of a building per m2 in the
relevant period by region
(source: OMI, year 2005-2006)
• It includes the cost of construction, the profit
margin and the value of land underlying dwellings.
8
Stock value of dwellings and accessory areas,
Italy. Years 2005-2006
Average price
Stock value of
N. of
Stock value of
surface per m2,
accessory
Dwellings
dwellings, euros
per m2 euros
areas*, euros
(A)
(D = A x B x C )
(B)
(C)
(E)
Total stock
value of
dwellings,
euros
(F = D + E )
2005
28,366,091
110.896
1,300.245
4,090,179,854,218
337,655,881,396
4,427,835,735,614
2006
28,699,264
113.279
1,444.737
4,696,854,651,525
385,214,140,774
5,082,068,792,299
Source: Our elaborations; CRESME; OMI.
*accessory areas: garage, car places, canopies, cellars, lofts and deposits
9
Value of land underlying the dwellings
Total stock
value of
dwellings,
euros
(F)
Stock value of
Value of land
dwellings net of underlying the
undelrlying land*,
dwellings,
euros
euros
(G)
(H = F - G)
2005
4,427,835,735,614
2,835,138,000,000.000
1,592,697,735,614
2006
5,082,068,792,299
2,979,515,000,000.000
2,102,553,792,299
Source: Our elaborations; CRESME; OMI.
* calculated by P.I.M.
10
Value of Dwellings by institutional sector
OMI statistics provide :
• The shares of the total surface of dwellings
owned by PP (individuals) and NPP (others).
• PP are assigned to S14
11
Value of Dwellings by institutional sector
• The stock of dwellings for S12 has been
estimated from balance sheets data and has
been detracted from NPP
• The remaining stock of NPP has been
assigned to S11. No dwellings have been
assigned to the market producers in S14 (
very small enterprises)
• Data do not include dwellings owned by
General Government, which are estimated
independently, by P.I.M., within the
framework of GG accounts
12
Value of Dwellings by institutional sector
Code
List of
variables
Institutional Sectors
S1
S11
S12
S13
S14+15
Dwellings
Land
underlyng dwellings
2,835,138
138,274
4,379
49,456
2,643,029
1,592,698
77,675
2,463
27,783
1,484,776
Dwellings
Land
underlyng dwellings
2,979,515
144,283
4,162
52,476
2,778,595
2,102,554
101,861
2,892
37,030
1,960,770
year 2005
AN.1111
AN.2111
year 2006
AN.1111
AN.2111
Source: Our elaborations.
13
Value of Non-residential buildings
by institutional sector
Institutional Sectors
Code
List of variables
S1
S11
S12
S13
S14+15
1,361,394
560,979
73,367
270,375
456,673
294,865
121,502
15,891
58,561
98,911
1,434,161
596,276
76,436
286,153
475,297
352,305
146,476
18,777
70,294
116,758
year 2005
AN.11121 Non-residential buildings
AN.2111 Land
underlyng Non-residential buildings
year 2006
AN.11121 Non-residential buildings
AN.2111 Land
underlyng Non-residential buildings
Source: Our elaborations.
14
Other structures by institutional sector
•
•
starting from GFCF series
(valued net of the value of underlying land)
Stock in Other Structures (OS) estimated by
P.I.M for
1. General Government (S13)
2. Non-financial Corporations (S11).
15
Value of Other structures by institutional
sector
Institutional Sectors
Code
List of variables
S1
S11
S12
S13
S14+15
1,324,651
619,345
0
705,306
0
129,436
60,518
0
68,918
0
1,387,174
650,043
0
737,131
0
151,743
71,108
0
80,635
0
year 2005
AN.11122 Other structures
AN.2111 Land
underlyng Other structures
year 2006
AN.11122 Other structures
AN.2111 Land
underlyng Other structures
Source: Our elaborations.
16
Land under cultivation (AN2112)
Main sources:
ISTAT
•
Census of agricultural holdings, year
2000” (CAH 2000).
• “Structure and productions of the
agricultural
enterprises” (SPA),
years 2005-2003,
INEA
National Institute of Agricultural Economics
•
“Survey on the land market” 2006
17
Land under cultivation (AN2112)
Years 2003-2006
Methodology:
•
Value of the land under cultivation =
UAA in ha X market price per ha
UAA : utilized agricultural area
market prices by region (Source: INEA)
18
Land under cultivation (AN2112)
•
utilized agricultural area (UAA)
•
arable land;
permanent meadow and pasture;
land under permanent crops.
•
•
total agricultural area (TAA)
it is given by the UAA plus :
wooded area;
other land.
19
Value of Land under cultivation (AN2112)
UAA
PRICES
[a]
[b]
(HECTARES)
Regions
ITALY
North
Center
South and Islands
VALUE AN2112
[a] X [b]
(EUROS PER HECTARE)
2003
2004
2005
2006
2003
2004
2005
2006
13,115,810
4,713,352
2,407,845
5,994,613
13,115,810
4,713,352
2,407,845
5,994,613
12,707,846
4,578,414
2,329,479
5,799,953
12,707,846
4,578,414
2,329,479
5,799,953
15,646
25,422
11,472
9,636
16,026
26,312
11,555
9,735
16,073
26,176
11,714
9,848
16,205
26,285
11,812
10,013
(MILLIONS EUROS)
2003
2004
2005
2006
205,213 210,197 204,247 205,931
119,823 124,016 119,845 120,342
27,623 27,823 27,287 27,516
57,767 58,358 57,115 58,073
Source: ISTAT; INEA.
20
Utilized Agricultural Area by legal form of the
owner.
legal form
sole partnership
collective communality
capital companies
cooperative society
producers' association
Public authority
other legal form
Total
instituional sector
S14
S14
S11
S11
S11
S12
S11
UAA (hectares)
% share of UAA
by legal form
10,456,097
154,267
1,425,655
114,854
4,617
999,468
51,339
79.2%
1.2%
10.8%
0.9%
0.0%
7.6%
0.4%
13,206,297
100.0%
21
Value of Land under cultivation (AN2112) by
institutional sector
Millions euros.
Institutional Sectors
S1
year 2006
year 2005
S11
205,931 11,996
204,247 11,838
S12
S13
S14+15
0 15,585 178,350
0 15,458 176,952
Source: Our elaborations
22
Consumer durables
Application of P.I.M. to estimate consumer durables
stock
(accumulating past purchase of assets over their
service life)
Necessary elements to apply P.I.M.:
a) retirement model (truncated bell-shaped model)
b) depreciation function (straight-line depreciation)
c) average service life
23
Categories of durable goods
years
Furniture
15
Big household appliances
8
Medical equipment
4
Personal transport equipment
9
Non mobile telephones and telefax equipments
5
Mobile telephones
3
Personal computers
5
Tv, radio,hi-fi, photographic equipment
7
Jewellery
39
Other durables goods
3
24
Results:
1990-2007 time series of gross and net stock, retirements and
consumption of the stock at current replacement cost and as
chain-linked values (reference year: 2000)
Gross stock of consumer durables (current replacement costs).
Millions euros
Categories of durables
2005
2006
2007
Furniture
386,017
392,508
399,713
Big household appliances
52,109
54,095
56,697
Medical equipment
6,347
6,273
6,238
507,107
529,323
551,383
Non mobile telephones and telefax equipment
4,572
4,567
4,581
Mobile telephones
10,541
11,107
11,215
Personal computers
14,939
13,853
13,611
Tv, radio, hi-fi, photographic equipment
25,560
26,295
26,548
Jewellery
139,187
145,713
152,287
Other durable goods
12,460
13,826
14,456
1,158,839
1,197,560
Personal transport equipment
Total durable goods
1,236,729
25
Gross stock of consumer durables
(chained-linked values). Millions euros
Categories of durables
2005
2006
2007
Furniture
346,406
345,611
344,113
Big household appliances
50,881
52,719
54,884
Medical equipment
5,923
5,803
5,705
Personal transport equipment
454,828
463,729
472,020
Non mobile telephones and telefax equipment
8,340
9,831
11,623
Mobile telephones
19,319
24,047
28,649
Personal computers
26,930
28,648
30,638
Tv, radio, hi-fi, photographic equipment
27,985
29,971
31,801
Jewellery
126,046
129,768
133,566
Other durable goods
10,632
10,384
10,047
Total durable goods
1,077,290
1,100,510
1,123,046
26