Task Force on Land and other non-financial assets Progress report and request for AEG advice

1. Task Force on Land and other non-financial assetsProgress report and request for AEG advice Hans Wouters ESTAT, unit C.2

2. Content • Background • Content compilation guide • First discussion selected topics • Valuation government owned land • Envisaged time schedule • Requests to Advisory Expert Group Item 7 AEG 29-31 May '13

3. 1. Background History: • October 2011: OECD workshop on the implementation of the 2008 SNA • November2011: CWPS and NAWG discussions on table 26 • Agreement to establish TF on Land and other non-financialassets • 18 April 2012: agreement in NAWG establishment TF on Land and on draftmandate • First and second TF meeting in July and December 2012 Item 7 AEG 29-31 May '13

4. 1. Background Composition and institutional arrangements: • Joint OECD-ESTAT TF • 20 members plus ESTAT/OECD staff • Of which 11 EU members, 8 (other) OECD countries, ECB • Chaired by ESTAT and OECD • 2 meetings a year • In addition: electronic discussions • Start July 2012, finalization December 2014 Item 7 AEG 29-31 May '13

5. 2. Content compilation guide • Introduction (preface, acknowledgements, summary) • CH 1: Why do we need this manual? - OECD • CH 2: Concepts and definitions - ESTAT • CH 3: Classification of land – DE, AT, MX, NL, ES • CH 4: Data sources – OECD • CH 5.1+5.2: Direct estimates of land – DE, KR, FI • CH 5.3 Indirect estimates of land – DK, IT, SI, CA • CH 5.4 Depreciation aspects – US, KR, NL, CZ • CH 6.1 Separation land and structures – DK, IT, SI, CA • CH 6.2 Estimating land improvements – ESTAT Item 7 AEG 29-31 May '13

6. 2. Content compilation guide • CH 6.3 Treatment of government owned land – NL • CH 6.4 Value, price and volume changes – OECD • CH 6.5 Sectorisation and cross classification – CA, UK • CH 7.1 Housing bubbles – ECB • CH 7.2 Valuation historical monuments – CZ • CH 7.4 Dwellings as storage of wealth – MX • CH 8: Country studies (using fixed formats: sources, methods, calculations, output) • Overview of references, appendices Item 7 AEG 29-31 May '13

7. 3. First discussion selected topics • Classification of land • Proposal for breakdown land into subcategories • Separation of land/structures • Discussion on two approaches: residual approach and hedonic approach • Questionnaire on service lives • Focus on service lives of 'land related assets' • Capturing housing bubbles • Discussion on housing and households characteristics and housing market indicators Item 7 AEG 29-31 May '13

8. 4. Valuation government owned land Question: shouldgovernmentowned land bevalued? Yes… • Governmentcansell the land • Governmentspends money on land with public function No… • Value alreadyincluded in adjacent land – double counting • No real market value • Measurementproblems Item 7 AEG 29-31 May '13

9. 4. Valuation government owned land Questions: • How does the AEG think about these pros and cons? • Are thereother pros or cons thatshouldbeconsidered? • Whatis the final opinion of the AEG on the question whetergovernmentowned land shouldbevalued? Item 7 AEG 29-31 May '13

10. 5. Envisaged time schedule Item 7 AEG 29-31 May '13

11. 5. Envisaged time schedule Item 7 AEG 29-31 May '13

12. 6. Requests to Advisory Expert Group • What is the opinion of the AEG concerning the valuation of government owned land? • Does the AEG have comments regarding the proposed content of the compilation guide? • Does the AEG have comments concerning any other issue that has been or should be addressed by the TF on Land? Item 7 AEG 29-31 May '13

13. Task Force on Land and other non-financial assetsProgress report and request for AEG advice Hans Wouters ESTAT, unit C.2