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2008, Vol.18, No.1

  • 1.

    Estimation of Capitalization Rates by the Debt Coverage Method and their Practical Applicabilities

    Jeong Keun Ahn | 2008, 18(1) | pp.9~30 | number of Cited : 2
    Abstract
    To value income property by using the equity-mortgage capitalization method in an inflationary environment can cause the problem to underestimate overall capitalization rate so that the market value of subject property is overestimated than its actual earning power. Alternatively, mortgage lenders use the concept of mortgage debt coverage and related mortgage terms as a means for computing an overall capitalization rate. This paper calculated overall capitalization rates of commercial and residential properties by using the debt coverage method. The calculation results revealed that the magnitude of commercial property capitalization rates ranging from 7.40% to 10.66% is more lower than that of residential property capitalization rates ranging from 9.28% to 13.10%. The comparative analysis between commercial property capitalization rates and residential property capitalization rates was carried out. The debt coverage method can be utilized to estimate the market value of subject property. Also mortgage lenders using the debt coverage method can compute easily the loan amount that they are willing to lend subject to the constraints of net operating income, annual mortgage constant, and debt coverage ratio. As the band-of-investment method and the debt coverage method have the equivalent structure, it is easy to derive the equity dividend rate implied in the debt coverage ratio which is the required rate of return of the equity investor from the two equations. If the dividend rate is sufficient to meet the required rate of return of the equity investor, the lender can use the debt coverage ratio in negotiating mortgage terms with other variables.
  • 2.

    A Study on the Income yield rate's Determinants of Office Building in Seoul With Cross Section and Time series data

    이충재 | Kim, Hocheol | 2008, 18(1) | pp.31~48 | number of Cited : 3
    Abstract
    Income yield rate has been a matter of concern in korea since the 1997 currency crisis. Nonetheless, few papers have been made public in Korea. The purpose of this paper is to study on the income yield rate's determinants of office building in seoul, with Cross Section and Time series data which are supported by Just-R from 2003 to 2007. In this study, we made of empirical analysis for the determinants of income yield rate in seoul's office building. Variables such as building location, security system, use limit, floor space index, vacancy rate, rate of interest were significant in regression model. Major finding are summarized as follows : Building location and rate of interest have positive effects on income yield rate. This paper is useful for office building investors and market analysts.
  • 3.

    A Study on the influence of type of business of tenant to the office building rents in Seoul

    양승철 | 2008, 18(1) | pp.49~70 | number of Cited : 13
    Abstract
    Office building supply the space to the economic activities and the demand of office building is the derived demand of economic activities. Therefore the rent is influenced by the occupation of tenants who carry industrial activities. On the other hand rent give an effect to the occupation of office building of tenants. So there are simultaneities between rent and occupation of tenant. This study made empirical analysis for the role of type of business of tenant to the rent of office buildings in Seoul, Korea, by using Two Stage Least Squares(TSLS). In ordinary least squares the type of business of tenant did not affect the rent, but in TSLS it had a affect to the rent of office building. And it was not significant to large size building model, but was significant to medium size buildings.
  • 4.

    Discussion of Causation between the House Market Price and Builder's Pre-sale Price by means of the Corn Law debate

    조훈희 | 2008, 18(1) | pp.71~94 | number of Cited : 5
    Abstract
    The study began from the initial question of effectiveness between the market price vary by builder's pre-sale price and the pre-sale price influent from the market price. The Corn Law debate, a serious altercation between two famous classical economists, T. R. Malthus and D. Ricardo, was a clue of the solution. The logical superiority of Ricardo's opinion, which received wider support historically, applied to the house market, deducted a hypothesis that the builder's pre-sale price can be adjusted by a the high market price and is causative of using expansive land and supplies, and this logic is set as a direction of this study. The hypothesis is in agreement with the statistical meaning. The general price in the housing market is predominant and precedes the decision of pre-sale price from the analytical model of the market price and builder's pre-sale price. The leading effect of market price to the pre-sale price is empirically and logically superior conclusion than the leading of sale price.
  • 5.

    A Study on the Maximum Rates of Difference using the Comparison of Factors in the Compensation Appraisal

    Bumung Lee | 2008, 18(1) | pp.95~124 | number of Cited : 6
    Abstract
    Regional and site forces play a critical role in land appraisal practices since they have considerable effects not only on personal property rights and also on equity in taxation. Those forces and their comparable factors stipulated in the Land Compensation Appraisal Guidelines have been working as important standards in land compensation appraisal. However, the rates of difference using the comparison of components are not articulated properly. This study suggests the maximum rate of difference using the comparison of factors that can be applied in appraisal practices. It is author’s belief that this study will contribute to enhancing specialty and reliability of land value appraisal practices.
  • 6.

    A Study on the Unconstitutionality of an Affirming Hypothesis that Windfall Should be Excluded from the Compensation for the Land Taken

    류하백 | 2008, 18(1) | pp.125~152 | number of Cited : 8
    Abstract
    Article 23(1) of the Constitution provides and guarantees the right of private property of all citizens, Article 23(3) goes on to provide that condemnation of property rights for public necessity shall be governed by law and in such a case just compensation therefor shall be paid, which the permanent guarantee of property rights shall be converted into just compensation(value guarantee) therefor. Constitutional Court differentiates social obligation inherent in property rights provided by Article 23(1) and Article 23(2) from deprivation of property by Article 23(3). Although a project initiator may have the legal ability to acquire the right of eminent domain for public project, he or she can neither acquire nor develop land needed under a substantial land use regulation in the zoning(management zone, green zone, etc) derived from social obligation inherent in property rights. He or she can acquire and develop it, when changed into a developable zone which resulted from removing the limitation or prohibition on it. A change of the zoning may increase the value of land due to the diversity of land use resulting from removing the limitation or prohibition on social obligation inherent in property rights. The enhancement in the value of land, which resulted from removing the limitation or prohibition on it is a general benefit, that should be enjoyed by all the landowners who possess developable lands. Although Constitutional Court strictly differentiates social obligation inherent in property rights by Article 23(1) and Article 23(2) from deprivation of property rights by Article 23(3), he decided that just compensation be the amount based on officially assessed land price designed under a substantial land use regulation in the zoning, derived from social obligation inherent in property rights, which might violate the upper precedents, and makes arbitrary discrimination against the sellers(the expropriated owners). Unless the compensation for deprivation of property rights will be just, the seller might not agree on the amount of compensation to be paid for the land needed, which derived the freedom of contract and the principle of private autonomy. The compensation offered to the expropriated owner should be the amount based on current value(fair market value), should be sufficient enough to acquire alternative land nearby which is equivalent for the land taken, and should be the amount that by a willing and informed seller and a willing and informed buyer might be expected to reach an amicable agreement for it in the open market. Therefore an affirming hypothesis that windfall should be excluded from just compensation that shall be paid to the landowner for the land taken can not be materialized.
  • 7.

    An Analysis of the Effect of the Compulsory Rental Housing Provision Policy on the Redemption of Betterment in Korea

    Soon-Tak Suh | 김정규 | 2008, 18(1) | pp.153~168 | number of Cited : 3
    Abstract
    Recently, the reconstruction of apartment and the provision of rental housing has attracted interest from policy-makers and academics in Korea. This interest links to reconstruction policy which a rental housing should be built compulsorily when an apartment complex is reconstructed. This research is closely related to the redemption of betterment come from reconstruction of apartments. In this context this study is aimed at analysing empirically the effect of the compulsory rental housing in an apartment reconstruction complex on the redemption of betterment. In doing so, two cases have been investigated and analysed. This study was intended to analyse the actual conditions of the redemption system of betterment based on two real cases. The result of case study is that the size of betterment at Kang-Nam area is bigger than that of the Kwang-Myung case, meanwhile the redemption ratio of betterment of the Kang-Nam case is rather lower than that of the Kwang-Myung case. This study concludes that the future reconstruction policy of apartment complex should consider the differential redemption ratios by regions.
  • 8.

    Legal & Institutional Essay concerning Role Readjustment for the Establishment of Decentralized Urban Planning System

    허강무 | 2008, 18(1) | pp.169~184 | number of Cited : 4
    Abstract
    "Making a dweller-centered district", in which an opulence in life can be experienced, is possible to realize until the centralized system lasting up to now is improved and a policy is established with the application of diverse criteria, which is possible in a social system where a district itself can display the creative development and its subjecthood to the utmost; thus, in its fullest sense, urban planning is the most rational means. Urban planning business, in its character, is the cardinal point of local autonomy in that it has a strong character of locality and it's a sector directly linked to a resident's living. Therefore, urban planning is the autonomous affair which should expand and strengthen local autonomous entity's roles on a large scale. In recent times when local autonomy is getting mature, a considerable portion of the business related to urban planning has been entrusted to the local autonomous entity's affair compared to the past due to the reapportionment of authority between the central government and local autonomous entity. However, there have been arising a lot of side effects because a nation, whose character of locality and toward civilians is relatively vulnerable, supervises the urban planning of the whole nation. The necessity of the establishment of decentralized urban planning is gaining weight to make it possible to make a dweller-centered district with a sense of responsibility of a local autonomous entity and its residents while tiding over urban development thoughtless for the environment. Consequently, this research is aimed at developing legal & institutional essay study on the necessity of role readjustment and plan between the central government and a local autonomous entity ; a self-governing body for a wide area and basic self-governing body ; a local autonomous entity and its residents; a local autonomous entity and a local assembly, etc.
  • 9.

    A Study on the Analysis for the regional factors of Cadastral Surveying Workload (Focusing on the Impact Relationship between Real Estate market factors and Local Cadastral Surveying Workload)

    송명숙 | 2008, 18(1) | pp.185~206 | number of Cited : 2
    Abstract
    This study focuses on analyzing the regional factors and its primary factors that have an effect on the cadastral surveying workload and drawing a conclusion the main factors by applying Autoregressive error model. The analysis method is that the segmentation of the branch offices by analyzing the cycle and trend of cadastral workload which is applied to spectral analysis method and the regional main factors having an effect on Cadastral Surveying workload are applied to Autoregressive error model, GARCH model. The main result is that the segmentation of head office and 210 branch offices, which are made up developing offices, stable offices, upward offices, unstable offices which are typed 12 representative offices and that are applied to autoregressive error model. And also, the result of the regional main factors analysis is that the common factor is a real estate planning buying affected branch offices mainly but other factors are a little different regionally. But it has affected by Real Eastate Policy and Construction market factors, mostly.
  • 10.

    A Study on the Issues of Provisional Registration Security - in Relation to the Activation of Provisional Registration Security -

    구재군 | 2008, 18(1) | pp.207~225 | number of Cited : 1
    Abstract
    The Provisional Registration Security Act has been enacted in order to protect a debtor, but the Provisional Registration Security is rarely used in our society because of its complicated procedure. There will be more necessity to make efficient use of Provisional Registration Security. In this treatise I have advanced a theory to regulate legal problems rationally arising from the Provisional Registration Security. This treatise deals with the legal nature, the settlement and the enforcement of the Provisional Registration Security. By the interpretation of the Provisional Registration Security Act, I think the legal nature of the Provisional Registration Security seems to be a kind of special mortgage. At the settlement stage of the Provisional Registration Security, I discussed the contracting parties to a settlement of the Provisional Registration Security, the coverage of the obligation by the Provisional Registration Security, and the method of public notice of the Provisional Registration Security etc. I discussed the legitimate receiver of enforcement notice, the method of liquidation, an adjusted amount, a deposit of the adjusted amounts, and statutory surface rights etc. of the Provisional Registration Security in its enforcement stage.