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2011, Vol.21, No.1

  • 1.

    Estimation of the Value of Floor Area Ratio of Retail and Office Sub-Markets to Promote the Transfer System of Floor Area Ratio

    신우진 | 2011, 21(1) | pp.7~29 | number of Cited : 2
    Abstract
    Recently, the transfer system of FAR(Floor-Area-Ratio), as one way of the disordered development control and land market stabilization, has actively been discussed. As the value of residential real estate has been decreased after financial crisis, it become more important to estimate the value of office and retail FAR correctly. The value of office and retail FAR should be estimated with considering the diminishing marginal utility of the value of office and retail. Moreover, the value of office and retail FAR per non-residential sub-market should be estimated, for the average value of office and retail of each sub-markets differs. In this research, a hedonic price model was developed with the determinants of the value of office and retail using 290 offices and 548 retail buildings in Seoul, Korea. Next, the value of 1% FAR of office and retail in Seoul, Korea. This study shows two helpful outcomes. First, the increase of the FAR by 1% decreases 1,600 won/㎡ of appraisal value per unit in office and 9,900 won/㎡ of appraisal value per unit in retail. Next, the value of 1% FAR is equivalent to about 0.15%∼0.25% of land value for office and about 0.35∼0.62% of land value of retail. The results of this study can be helpful to calculate the transaction price of the FAR of office and retail more correctly.
  • 2.

    A Study on Application of Conjoint Analysis in Evaluating Alternatives for Retail Property Development -Based on the Case of Retail Property Development in Bundang and Pangyo Area-

    Kang Myung Soo | Jong-chil Shin | 2011, 21(1) | pp.31~50 | number of Cited : 7
    Abstract
    Conjoint analysis is widely used in the field of marketing as a way to understand and incorporate the structure of consumer preferences into the new product design process. Conjoint analysis attempts to determine the relative importance consumers attach to salient attributes of new product and the utilities they attach to the levels of attributes. The utilities derived from conjoint analysis can be used as input into a choice simulation to determine the share of choices, and hence the market share of different product alternatives. It is based on the simple premise that consumers evaluate the value or utility of a product or service by combining the separate amounts of utility provided by each attribute. Also, it is based on the premise that the relative utilities of attributes considered jointly can better be measured than when considered alone. This study suggests developers can use conjoint analysis in evaluating their development alternatives to increase consumers' acceptability of their retail properties and possibility of successful development. With empirical research, this study shows developer can understand the relative importance of attributes that consist of their development alternatives and find out an ideal retail property alternative through conjoint analysis. And this study shows that developers can estimate market share for the competitive retail properties and new simulated retail property by using choice simulation before they actually develop their retail properties.
  • 3.

    A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market

    신우진 | Kim Ju Young | 2011, 21(1) | pp.51~72 | number of Cited : 6
    Abstract
    As the transfer system of FAR has lively been argued, measuring the value of FAR (Floor-Area-Ratio) has become more important than ever. The one of the pre-requisite for success in the transfer system of FAR is to estimating the proper supply and demand of FAR. This is because that the demands on FAR would be determined by the optimal FAR in the area where the net value is high. Nonetheless, the most studies have focused on apartments’ FAR rather than commercial properties such as office, retail, etc. In this study, the optimal FAR and the net value on the optimal FAR in office and retail sub-markets were estimated using 108 office properties and 104 retail properties in Kangnam Market, Seoul. Study results showed that the optimal FARs in office sub-markets ranged from 887% to 1,117%, which was almost same with the highest FAR of samples in each sub-market. The net value on the optimal FAR in the Seo-Cho office sub-market is about 12.9MKW (million korean won)/㎡. On the other hand, the net value on the optimal FAR in Teheran-Valley (Yeok-Sam, Sam-Sung, Sun-Reung) sub-markets ranged from 7.1MKW/㎡ to 8.2MKW/㎡ due to high land purchasing price. In retail market, the optimal FARs in retail sub-markets ranged from 196% to 234%, which was almost same with the average FAR of samples in each sub-market. The net value on the optimal FAR in the Kangnam-Yeok retail sub-market was about 10.9MKW/㎡, which was approximately twice of the net profit on the optimal FAR in other retail sub-markets. This study is expected to make a significant contribution to examine the net value on non-residential properties in office and retail sub-markets. The result will also be helpful tips for owners of, or investors for office or retail properties when they consider to invest the office or retail properties.
  • 4.

    A Study on the Evaluation Model to Select Public-Private Partnership Development Project

    Jaehwan Kim | Sangyoub Lee | 2011, 21(1) | pp.73~109 | number of Cited : 8
    Abstract
    One of the most representative types of mix-used developments, private-public partnership development project invites private contractors to a public project. It’s most important task is to select the right contractor. Such a project does not end with the selection of a contractor by the owner; it needs both the owner and contractor to participate even in the operation and management after the completion of the project. That is why it requests a different way of selecting a contractor than the old public projects. Thus this study organized the areas of evaluation that reflected the intentions of both the owner and the participants in the selection process of a contractor for private-public partnership project financing, identified the items and elements for each area of evaluation, and came up with the following researches on a set of rational criteria for the selection of a contractor:According to result, first, the highest in public good, which was newly added, in the seven areas of evaluation and offered the ripple effects on the local economy in cost-benefit analysis. When the analysis results of each model were restricted to development and construction plans, the development plans of classification systems recorded high importance in overall development conception of the evaluation items and differentiation (creativity) of development ideas of the evaluation items. Second, research suggested the relative importance of points based on the evaluation classification system of each of the project types. Finally, suggested in the study was a custom-made evaluation model by expressing the confirmation degree of the items of the evaluation areas in the language variables by the users so that they could use it in the field. The findings indicate that the users can use the evaluation model as a priority-based means for decision making.
  • 5.

    A Study on Development Method and Way of Cost Sharing on the Common Development in New Town

    서종대 | Lee,Joo-Hyung | 2011, 21(1) | pp.111~129 | number of Cited : 0
    Abstract
    This study considered about development method and sharing way of cost which are caused conflict in the side of cost and benefit sharing on the common development in new town. In research methods, the analysis of present condition and the survey, the case study are carried out. As a result of the analysis of present condition, the designated new towns after 2001 mostly followed the type of common development. The survey result showed the needs to improve in the side of cost and benefit sharing. The result through the case study is as in the following. Firstly, the development method on common development in new town needs a preliminary examination about promotion necessity and financial ability of local government. Secondly, if common business is decided, there is need to choose one of four types of common development (the type of common operation, consignment operation, separately corporate establishment, site division) and need to decide through consultation based on result that specialized agency analyze ability, experience, characteristics of business and the real estate market. Thirdly, there’s an urgent need for an institutional strategy that can supplement problems of each type of business. Fourthly, There’s need for guide line on the cost sharing type for satisfactional consultation.
  • 6.

    A Study on the Compensation and Relocation Measures of Shop Tenants by Business Period: Focused on the Questionnaire Survey for the Shop Tenants

    정주희 | Kim, Hocheol | 2011, 21(1) | pp.131~154 | number of Cited : 5
    Abstract
    The purpose of this study is to provide policy suggestions and improvements for shop tenants by examining their features depending on business period and their opinions on the compensation and relocation measures. For an empirical analysis, shop tenants were divided into three groups according to their business period. Then a frequency analysis and a crosstab analysis were conducted among the groups. The policy suggestions of this study are as follows. First, the research results revealed that mid- and long-term shop tenants are highly likely to have negative perception about pursuing urban renewal project than the short-term counterparts from the aspects of capital expenditure and economic difficulty respectively. Therefore, when there are no compensations corresponding to their potential loss, it may bring difficulties in propelling the urban renewal project. Second, as it takes a long time to build customer loyalty and to develop a shopping district, it can be considered the way to differentiate the standard of operation loss compensation. Third, relocation measures should be taken compulsorily for shop tenants, it is required to set forth penalty provisions to regulate the developer who did not implement it. Fourth, a measure should be taken exclusively for shop tenants who are expected to lose both their dwelling and working place. Fifth, shop tenants should be provided with more opportunities to express their opinions. Also, it needs a contemplation to disclose mandatorily the detailed statement of estimating operation loss compensation.
  • 7.

    An Analysis of Reasonableness of Officially Announced Price of Real Estate Based on Real Transaction Prices -The Case of Gangdong-Gu in Seoul-

    홍원철 | Soon-Tak Suh | 2011, 21(1) | pp.155~169 | number of Cited : 37
    Abstract
    ‘Officially announced individual land price’, ‘single-family housing price’ and ‘multi-family housing price’ are researched and decided by the similar assessment method based on the same law and each officially announced price is defined as “reasonable price”. Considering that the term of ‘reasonable price’ is presented to achieve legal purpose, it is correct to say that it has intended not only to work as a reference in assessing the price but also to contribute to the formation of reasonable prices as a transaction standard. Therefore, it is important that the officially announced price of real estate have fully reflected market prices (real transaction price) and individual officially announced price has not lost fairness as an ‘reasonable prices’. Therefore, what matters is not the fact that the prices of actual trading and officially announcing are different but the reality that the officially announced price are not considered as reasonable prices because there are differences in the officially announced prices of the same property; different reflection rate of real trading prices is applied to set the officially announced price including ‘Officially Announced Individual Land Price’ ‘Single-Family Housing Price’, ‘Multi-Family Housing Price’ and ‘Sng PricePrices of Bamily Ho’ which are supposed to reflect market prices (or real transaction price of real estate); the applied reflection rate differs depending on the use ded ticts and u priti-Family Ho, causing a dedparity among the officially announced price of real estate; the reflection rate is ex temely low. In this study, I have presented the degree of disparity between the officially announced price of real estate and the price level of officially announced price by directly comparing the officially announced price and real transaction prices of real estate based on a complete survey on the reported prices of real estate transactions. According to this study, the officially announced price have been about 50% to 70% of the report prices of actual real estate transaction and the officially announced price of ‘Single-Family Housing Price’ that includes both buildings and housing has reached only about 86% of ‘Officially Announced Individual Land Price’ which counts only land price.
  • 8.

    An Analysis of the Appraisers’Recognition and Behavior on the Appraisal Smoothing Bias

    Ahn, Dong Joon | Suk-Chan Ko | 2011, 21(1) | pp.171~191 | number of Cited : 0
    Abstract
    This study aims to analyze the recognition and behavior of appraisers towards the appraisal smoothing bias included in the office price index. Based on the questionnaire survey data, the study finds that the majority of appraisers do recognize the existence of the appraisal smoothing bias in the process of evaluating office prices based on the index provided by the Ministry of Land Transport and Marine Affairs. The survey results also indicate that 38% of respondents acknowledge the existence of appraisal smoothing bias, and the appraisers who acknowledge more appraisal smoothing bias theories tend to accept the fact that they are affected by the results of their previous appraisal. Although the survey respondents do not want to change the current appraisal process, but they agree on the need to correct the appraisal biases incrementally.
  • 9.

    The Benefit Estimating Model of the Public Rental Housing Improvement for Public Asset Management -Using the Contingent Valuation Method-

    Cho, Yongkyung | YoungHo Yoon | Sangyoub Lee | 2011, 21(1) | pp.193~208 | number of Cited : 0
    Abstract
    In Korea, a number of public rental houses (PRH) have been supplied since 1989. Most of them need the rehabilitation and remodeling works to resolve the natural born barriers of public rental housing such as lowering resident’s satisfaction and reversely growing living cost. For more efficient and economic management of public asset, this study aims to suggest the model for estimating the benefits provided by the asset management of PRH using the CVM. In order to quantify the benefits, the monetary value of benefits has been estimated and the influencing factors on resident’s WTP(willingness to payment) of housing improvement have been analyzed based on linear logistic model. The research findings indicate the benefits of alternatives respectively A: 17,400, B: 24,620, C: 12,490, D: 26,840 thousand won, mainly controlled by the family size, monthly income, and whether a household has a disabled person or not.
  • 10.

    The Rational Improvement Plans for Current Taxation System of Upper-Class (or High-Grade) House

    Jang Ki Yong | 2011, 21(1) | pp.209~233 | number of Cited : 2
    Abstract
    In this study, I would like to examine problems and present rational improvement plans related to heavy tax system for Upper-Class (High-Grade) House. The results of this study are as follows. First, heavy tax system for the acquisition tax regarding Upper-Class (High-Grade) House is desirable to be alleviated considerably or be abolished. Second, it is desirable not to impose Comprehensive Real Estate Holding Tax and Income Tax of house lease like different nations regardless of value etc. only if he owns one house per household for primary residence. Third, I suggest revising the ratios of special deduction for long-term holding and introducing the income deduction system for house, now being implemented in America and Japan, as a rational development plan to replace the present non-taxation system for one house per household. I expect that the results of this study may contribute to normalization of a taxation system regarding a house.
  • 11.

    A Study on the Determinants of Apartment Premiums in Korea

    Choi Eunyoung | Sung-soo Koh | 김민석 | 2011, 21(1) | pp.235~254 | number of Cited : 10
    Abstract
    Korean housing market maintains the pre-sales system in which home buyers should make an important decision two or three years before they actually owns the properties. It is believed very important for investors to forecast the price increase during the construction period. This paper studies factors affecting a market price when a home buyer move into a new house. This study established a theoretical model regarding the determinants of the difference between the initial sale price and a market price at the time when a home buyer move into a new house. It is analyzed by the regression analysis method using actual data in Seoul. The empirical findings exhibit that macro level variables, regional factors, and individual characteristics are all statistically significant. The changes in price are significantly affected by the sale price and individual characteristics of the property; a size of complex, a constructor brand, walking distance to the subway station, corridor design, a number of floors, and parking spaces.
  • 12.

    The Co-Integration and Spillover Effects between the U.S. and Asia-Pacific REITs: Evidence from the U.S. Subprime Mortgage Crisis

    김범석 | 2011, 21(1) | pp.255~279 | number of Cited : 1
    Abstract
    To analyzes the impact of collapse of the U.S. real estate market on the Asia-Pacific REITs during the sample period of January 7, 2004–December 31, 2010, this paper examines co-integration, causality, and volatility spillover effects between the U.S. and Korean, Japanese, Hong Kong, Singaporean, and Australian REITs. The sample is divided into two sub-periods before and after February 7, 2007 when DJ REIT index hit a record high. The findings indicate that Singapore, Australia, and Hong Kong REIT markets have a strong co-integration relationship regardless of the U.S. subprime mortgage crisis. Co- integration relationship between Japan and Australia and the U.S. became stronger after February 7, 2007. The evidence shows that there is a significant Granger causality from the U.S. to Asia- Pacific REITs before and after February 7, 2007, whereas there is not from Asia-Pacific REITs to the U.S, REITs. In addition, the strong spillover effects of shock and volatility from the U.S. to Asia-Pacific REITs are found before and after February 7, 2007.