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2013, Vol.23, No.3

  • 1.

    A Law and Economic Analysis of Private Takings

    KIM, IL-JOONG | Sungkyu Park | 2013, 23(3) | pp.7~33 | number of Cited : 0
    Abstract PDF
    The purpose of this paper is to provide empirical evidence of the comparative inefficiency of private takings. For this goal, we first examine the existing takings-related laws and survey major qualifications for private takings (i.e., participation restrictions or other preconditions). We then outline the legal and economic literature regarding private takings and offer the main argument that private takings can cause varying types of inefficiency such as cancellations, changes and delays of public projects by private-sector’s opportunism (i.e., adverse selection or moral hazard). The hypothesis is derived that eminent domain in combination with the private objective of profit maximization and the incompleteness of public monitoring against private-sector’s opportunism can be abused seriously. We subsequently show a possibility of private taking’s inefficiency by investigating the entire cases of constructing industrial complexes which took place almost for the past decade. Althought we rely on a simple methodology using average statistics, it turns out that supplying industrial complexes by private takings is not a superior means compared with public takings. This result implies that an effort to ensure private taking’s efficiency is needed.
  • 2.

    Effect of Structural and Locational Characteristics of Mixed-Use Apartment Complex on Housing Trading Volume

    문정우 | Sang Kyeong Lee | 2013, 23(3) | pp.35~49 | number of Cited : 3
    The purpose of this paper is to analyse the effect of structural and locational characteristics of mixed-use apartment complex on housing trading volume. We use the Poisson regression model and the negative binomial regression model for the trading volume in Seoul from 2006 to 2010. It is turned out that the number of residential units and the height of building that are related with the size of complex have positive effect on the hosing trading volume. The ratio of unit under 85㎡, construction company that represents brand image, and the approval year that is related with building age have positive effect, too. For heating variables, the effect of regional heating and central heating are smaller than individual heating. For regional variables, effect of central region and northwest are smaller than southeastern. As a result of measuring price index and trading volume index, price index is turned out to continuously increase not like trading volume index that had great fluctuation reacting sensitively to market situation.
  • 3.

    A Study on the Changes in Housing Prices Depending on the Accessibility of the Seoul Metropolitan Rapid Transit

    Jeong, Moon Oh | Sangyoub Lee | 2013, 23(3) | pp.51~77 | number of Cited : 20
    This study aims to examine the spatial and temporal effects of the opening of metropolitan rapid transit, which is one of the social overhead capitals, and the accessibility of a metropolitan rapid transit station on housing prices by applying various analyses. The results of the analysis at each construction stage of the metropolitan rapid transit indicated that the housing prices were the most affected right after the opening. Also, there was a price rise right after the beginning of the construction, but the price rise was slightly smaller than that in the opening or planning stage. In general, the construction project of the metropolitan rapid transit station had a positive effect on the prices of nearby housing rather than a negative effect. Therefore, it could be used for predicting the changes in real estate prices regarding the metropolitan rapid transit and light rail transit that are to be built in the future. Furthermore, it is thought that the results of this study could be used in decision making for the purpose of investment as well as for the purpose of actual residence.
  • 4.

    An Analysis of Housing Careers on Korean Household and Wealth Variation

    Mihwa Lim | Lim, Jae Man | 2013, 23(3) | pp.79~97 | number of Cited : 5
    This paper attempts to categorize the pattern of housing careers in terms of housing tenure in contrast to previous studies focusing the cause of residential mobility and determinants of tenure choices. We tracked housing careers as owner/tenant status with moving times, age, income of household, the number of household, and housing sizing. We first classify the tenure status at the first and the final time of survey periods; owner-owner, owner-tenant, tenant-owner, and tenant-tenant. And then we break 4 major types down into 16 sub-types according as housing quality. (high-high, high-low, low-high, low-low) Results are as followings. First, no moving household during the survey period is the most type in the owner-owner type, and keep the first housing quality as moving. Second, the tenant-owner type shows the typical growth path of the middle class. They have moved upward with housing quality as increasing household income, the number of household member, and house size. Third, the level and growth of household income of the tenant-tenant type was the lowest, and the number of household member was the most. Finally, the owner-tenant type has showed the most volatility of income level, but the number of household member and house size was the least.
  • 5.

    A Study on the Influences of Environmental Factors on the Apartment Price:Focused on View Quality and Park Accessibility in Songdo Newtown

    이진순 | Jonghoon Kim | Yang-Hoon Sonn | 2013, 23(3) | pp.99~121 | number of Cited : 17
    This study attempted to explain both the influences of environmental characteristics, such as the openness, park view, park accessibility, over apartment price, and whether their influential power could be controlled upon the apartment physical traits (size, floor level). To test the research model and hypotheses, the empirical analysis was implemented. By using the actual transaction data, the influencing factors of apartment price were investigated. In this study, it was presented that as interactive effect the explanatory results (model 1-1, 1-2, 1-3) might be influenced by physical traits (size, floor level) other than the environmental characteristics (openness, park view, and park accessibility) of the main result (model 1). The result showed that openness, park view, and park accessibility influenced the apartment price positively. In addition, the influence of openness and park accessibility over apartment price were moderated by its size, whereas the park view was not statistically moderated by its floor levels.
  • 6.

    A Study on the Effects of Retirement and Retirement Period on Housing Consumption

    KIM DAEHWAN | Lee Sung-Gun | Hwagyoo Park | 2013, 23(3) | pp.123~134 | number of Cited : 6
    It has been debated whether currently depressed real estate market is short-term phenomenon or the depressed market keeps going in the long run. The pessimistic views are based on the assumption that retirees liquidate their real estate for obtaining stable income stream in order to maintain their life patterns. Priori literature have suggested that demographic changes and retirement are influence factors in determining real estate price. However, it has been little empirically investigated in Korea. Utilizing panel data with a fixed effect model, this paper tests the retirement effects on the housing consumption. Empirical results show that as individuals retire and retirement period is extended, they sell their house. On the other hand, even the old keep their house as their income relative to spend remains stable. Since baby-boomers who retire soon have relatively stable income stream such as pension income, the housing price would not fall as much as expected even though the negative retirement effects of the baby- boomers on the real estate.
  • 7.

    A Study on Developing the Performance Index of Real Estate Investment

    Roh Sang Youn | Lee, Youngho | Seonghun Min | 2013, 23(3) | pp.135~155 | number of Cited : 1
    Institutional investors such as public pensions and funds are steadily diversifying their investment portfolio by increasing real estate investment. And their behavior influences the real estate market in Korea, too. For the effective asset allocation and performance evaluation, benchmark index of real estate investment is essential for institutional investors, however it has not been prepared in Korea yet. This study suggests a variety of plans in order to make the benchmark index in view of indexing methods, DB items and organizational systems. Firstly, we propose that the Customized Benchmark Index be made by the criteria of style, sector, location and position. Secondly, we propose that DB items be made up of not only property level items but also fund level items. Thirdly, we propose that the organizational systems be run by the establishment of nonprofit organization or government organization.
  • 8.

    A Study on the Prepayment Risk Variables in Korean MBS Market

    Tong Kyu Park | 김동환 | 2013, 23(3) | pp.157~179 | number of Cited : 8
    This study investigates the relation between the prepayment rate and the influencing variables of the mortgage backed securities(MBS) issued by the Korea Housing-Finance Corporation. Mortgage interest rate, apartment auction contract price rate, construction industry BSI and the unemployment rate were derived as the proxies for the influencing variables. As a result of the various tests using the Vector Error Correction(VEC) Model, mortgage interest rate was found to have a negative impact on the prepayment rate compared to positive impacts of the other proxies, It was also identified that mortgage interest rate influences shortly on the prepayment rate while the unemployment rate influences in a long term basis. Based on the above results, Korean MBS loan market seems similar to the Chinese market rather than US market in terms of the influence of the macroeconomic variables. It is also shown that speculative factors exist in Korean housing market with their impact on the prepayment rate smaller than that of mortgage interest rate or the unemployment rate.
  • 9.

    A Study on the Risk Reduction of Development Projects through the Managerial Land Trust

    송석주 | In Kwon Park | 2013, 23(3) | pp.181~205 | number of Cited : 1
    This study aims to identify risk factors in real estate development projects and to investigate how the managerial land trust (MLT) can reduce the expected risk factors. Specifically, we inquired into the following: First, we investigated how the MLT works and who participate as interested parties in the real tate development process by reviewing the literature, legal system, and existing studies. Secondly, we identified risk factors that are expected to come out significantly during the real estate development, through literature review, and a survey and interviews with three relevant parties, developers, contractors, and financial institutes. Thirdly, we surveyed the three relevant parties to see how the three relevant parties expect the MLT to decrease the risk factors. We also investigated the expected effect of the MLT on the risk factors through a case study. The findings of this study are as follows: First, in real estate development projects with developers and contractors separated, the different parties are exposed to different risk factors. Second, the relevant parties with development projects expect that utilizing the MLT will significantly decrease the risk factors, in particular, contractors’ bankruptcy, limited real rights for the land and project, and sales fraud. The case study results also confirm their expectation of mitigating risks. These results suggest that effective utilization of the MLT will decrease or avoid possible risk factors in the process of development projects.
  • 10.

    The Interrelationship between Land Price and Housing Price by Panel Simultaneous Equations Model in the Metropolitan Area

    권현진 | ByungRang Kim | Jung-Suk Yu | 2013, 23(3) | pp.207~233 | number of Cited : 6
    Recently housing market in the Metropolitan area of Seoul has been busted, but land market has been stable at the same time. We empirically analyze the relationship between housing price and land price in the Metropolitan Area from January 2006 to March 2013, with panel two-stage least squares method. This model uses housing price and land price as endogenous variables and trading volume, human migration, macro economic influences as exogenous variables. And we also include a dummy variable of global financial crisis in October 2008. Based on these estimation results, housing price and land price have an endogenous interrelationship and land price has a strong influence on housing price. However the trading volume and human migration exert less influence on both prices. In particular, the fluctuations of CPI and also housing finance as family loan have more important determinants of housing price and land price. Furthermore, the results show that it will provide suitable real estate and financial policies to raise demand for housing and land market.
  • 11.

    A Study on Factors that affect the Housing Downsizing of the Elderly Households

    Yong-Jin Kim | 2013, 23(3) | pp.235~254 | number of Cited : 11
    The purpose of this study is to find out the determinants on housing downsizing of the elderly households in Korea of rapid aging society with 1st baby boomer’s retirement. Using the Housing Condition Survey, this paper analyzes empirically by Probit estimation with binary index and OLS method according to the life-cycle model. And this study makes the cohort data through Venti and Wise (2001)’s method. As a result of analysis, the elderly households’s homeownership downsizing (i.e. from own to rent) rate decreases but their housing space downsizing rate increases. The higher are income and housing wealth, the lower is likely to downsize of housing. Also, the higher is education degree, the higher is likely to downsizing. This study shows mixed evidences in consuming housing wealth of Korean older people. First, contrary to the life-cycle hypothesis (LCH), Households above 70 age is not likely to downsize. But second, some economic variables affects housing downsizing as LCH predicts.
  • 12.

    A Study for Enhancement of Public Confidence in Officially Announced Land Price of the Standard Land through the Awareness Investigation

    이기흥 | Kim, Cheol-Hong | 2013, 23(3) | pp.255~273 | number of Cited : 4
    The purpose of this study is to present the problems and its resolutions of officially announced (OALP) land price through the awareness investigation for the public confidence of OALP by three groups (of the ordinary people, the person compensation concerned, and the specialists). Through the study, we find the public confidence is low by all the three groups. We also find that the OALP has to be fixed by market value to increase the public confidence. In conclusion, we can accomplish the purpose of introducing the OALP if it is based on the market value.
  • 13.

    A Study on the Effects of Real Estate Agents’Job Characteristics on Job Satisfaction and Organizational Commitment

    현문길 | Chae, Hyeon-Gil | Chung, Jae Ho | 2013, 23(3) | pp.275~292 | number of Cited : 1
    This study is to analyse on the relationship between the real estate agent’s job characteristics and job satisfaction&commitment. For this analysis, we found the job characteristics factors, analyzed impact on satisfaction, commitment statistically and then gave direction for real estate agents’s work environment and development. To achieve the purpose, this study was found the job characteristics factors, surveyed by 196 real estate agents who are working in Seoul, Incheon, Gyeonggi-do and analyzed impact on satisfaction, commitment statistically. As a result, it was analyzed that expertise, profitability of the job characteristics factors were statistically significant and job satisfaction has influenced on commitment. Therefore, in order to improve real estate agent’s expertise, it need to strengthen knowledge of real estate law and brokerage services. To achieve this, it should strengthen education of business, job training and introduce the learner’s training system. Secondly, in order to improve real estate agent’s profitability, it need to regulate real estate agent’s task exclusively such as consulting, sale agency and management agency. Also, it should enhance professional education and seek profitability diversification for doing variety real estate work such as consulting, sale agency and management agency as a sideline.
  • 14.

    A Study of Comovement and Factors Causing Volatility in REIT Returns Before and After the Global Financial Crisis

    허필원 | Kim Seong Hee | Gyo-Eon Shim | 2013, 23(3) | pp.293~318 | number of Cited : 0
    The purpose of this study is to grasp an understanding of the market comovement in terms of REIT returns and to find the asymmetric effects of information that may cause volatility in REIT returns. In order to demonstrate the research findings, an empirical analysis was performed with the use of correlation analysis, VECM, AR(1)-TGARCH (1, 1), AR(1)- EGARCH (1, 1), and AR(1)-GARCH (1, 1). The results of the analysis are as follows. First, the correlation analysis showed that there was a significant positive correlation between REIT returns in the four countries, the U.S., Japan, Singapore, and Hong Kong, which showed that there was comovement mechanism at work between the countries subject to analysis. The correlation between the countries, however, was not that high. Next, with the use of VECM, it was seen that Japan and Singapore had significant impacts on REIT returns in the U.S. throughout the overall period. This verified that the comovement here is not a unilateral, but interactive relationship. The VECM analysis was conducted on the REIT performance in response to the Lehman’s bankruptcy and the result showed that the influence of each country on itself was diminished in terms of REIT returns after the Lehman shock. In AR(1)-TGARCH (1, 1) model, AR(1)-EGARCH (1, 1) model, and AR(1)-GARCH (1, 1) model, Singapore and the U.S. were more predictable in terms of REIT returns compared to Hong Kong and Japan in the overall period. An analysis of asymmetric information showed that in all countries with the exception of Hong Kong, the degree of impact that information has on price volatility is asymmetric and it may be said that information asymmetry in Asian countries is weaker than that of the U.S.