Real estate indexes
1. Zona real estate index
Zona real estate indexes are proprietary price indexes that track the median price per square foot / meter of all second-hand residential real estate in a city. Indexes are compiled from realized real estate transactions across a city and are updated onchain on an hourly basis.
Zona indexes represent a massive improvement upon existing real estate indexes, due to:
Higher update frequency: Zona indexes are updated once an hour, as opposed to weekly or even quarterly for traditional indexes.
Higher data completeness: Zona indexes source data from all second-hand real estate transactions in a given city, whereas some traditional indexes may only include data from certain brokers.
Indexes are typically at a city-level granularity, although they can extended to a district-level or country-level index based on user demand.
2. Data Pipeline
Collect: Zona collects data on all realized real estate transactions for a city. The data is taken from multiple trustworthy local sources (such as real estate data service providers or agencies) to ensure reliability and redundancy.
Cleanse: The data is then cleansed for errors (e.g. duplicates or extreme outliers). A moving average is then applied to the index, which reduces price spikes induced by outliers and allows for a smooth trading experience.
Verify: The index is backtested against existing industry-leading indexes, ensuring that the price is correct.
Push: The index is bridged onchain via an oracle service.
Use: Users interact with the price index via PARK tokens on Zona.
3. What indexes will Zona support?
During our initial developmental stage, Zona plans to support major crypto cities first, such as Hong Kong, Singapore, Dubai, London, and more. We ultimately aim to support as many real estate markets around the globe as we can and welcome your feedback as to which cities we should integrate next.
4. How can we ensure that Zona's indexes are accurate?
For all indexes, Zona performs regular backtests against traditional industry-standard indexes. Using Hong Kong as an example, Zona's proprietary index exhibits a 96+% correlation with the industry-leading Centaline CCL Index. In addition, Zona's indexes updates on an hourly frequency, delivering much more granular data for the end user compared to CCL's weekly updates. This improvement is even more marked for other jurisdictions such as Singapore, where the industry-standard government index is updated only once a quarter.
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