Banking sectors have reduced their participation in real estate provident fund (PF) loans in risk management, and thus, nonbanking financial institutions’ participation in PF loans has increased due to a reflective effect. Consequently, the proportion of profits dependent on PF loans from nonbank financial institutions is increasing. When PF loans are executed, borrowers incur fees and interest expenses in exchange for financing project expenses, whereas financial institutions generate profits in exchange for the risk burden. This study analyzes the impact of financial institutions on profit indicators through PF loans. It uses data of normal business sites newly loaned by nonbank financial institutions considering the recent increase in participation of nonbanking financial institutions in PF loans. Moreover, the business sites that have been executed and operated normally are analyzed. Results reveal the difference in examining the factors that provide profits to financial institutions rather than the risk aspect. Furthermore, this study examines the PF loan cases that affect the profits of nonbank financial institutions that are limited in the diversification of capital power and sales structure. It also examines the effect of accepting appropriate risks on the profit.
This study analyzed whether there is a filtering effect in the Seoul office market. The face rent of office in the central business districts(CBD) of Seoul has been steadily raised after the early 2000s, although the vacancy rate in office rental market has been increased by the supply boom of S-grade office buildings. Such an external explanation has a limitation in that it does not reflect favors such as rent-free and fit-out that exist in the office market. Therefore, this study tried to examine the time-series change of the effect of the S-grade(the highest-paid rent) office building supply and the vacancy rate, face rent, and effective rent of each sub-markets depending on building grades.
This research analyzes how the supply rate of S-grade office buildings influences the effective rent, face rent, and vacancy rate for each class in the office rental market. By using the data from 2007 to 2015 while the S-grade market has experienced a supply boom, the analysis revealed a causal relationship between the supply of S-grade office buildings and the effective rent of A-grade offices at the 10% significance level. In contrast, no causal or significant relationship to other sub-rental markets was observed. The empirical results showed that when an S-grade office building is supplied, the A-grade office owner is strategically attracting tenants to avoid increasing vacancy rate. Because the target area of this study is limited to the CBD of Seoul, a more detailed analysis of the filtering effect of the overall market by grade is needed through further studies.
This study analyzes the impact of the educational environment of elementary and middle schools on the house sale price and “jeonse”/monthly rent prices. We divided the Bundang area into the entire Bundang-gu, including Pangyo New Town, and the old district in Bundang. Moreover, we analyze the two subjects using hedonic price model. In terms of the educational environment, the apartment model on the old Budang-gu, except for Pangyo New Town, shows more significant results. Analysis results reveal that the value of existing apartments is reflected by (i) the price influence of Pangyo apartments' relatively short model year and (ii) Pangyo business district's close-to-work influence through physical and location variables “ Year” and “Distance from Pangyo Business District.” In addition, a comparative analysis of the elementary- and middle-school-related variables in this study confirms that transfer to the school district could depend on the household’s funding capacity and whether the demand for the school district is short term. The significance of this study is that it empirically confirms the impact of elementary- and middle-school-related variables, which are key to the demand for housing, on apartment prices between the sale price and the rent price.
As major cities worldwide face urban issues, such as traffic congestion, energy consumption, environmental pollution, and climate change, public transportation has been considered an important alternative. In particular, intermodalism of public transport is an effective policy measure to increase the use of public transport services. This study measures the integrated services of subway and buses in Seoul and analyzes their effects on residential and nonresidential land prices. Our models confirmed that metro and bus intermodalism generate positive effects on land prices although it was weaker than those of access to metro stations. Further, the models revealed that the land along straight streets within 1-km radius of metro station with more bus frequency and with more detour spots had gained more price premium. Overall, access to intermodalism of metro and bus is found to exert a greater positive effect on nonresidential than residential land prices. The results can aid in explaining and predicting the effects of intermodalism creation and expansion of public transportation services on the real estate market.
This study compares the differences between the domestic and the U.S. appraisal review system based on the operation status of the two countries' systems. Moreover, this study aims to present directions and prior tasks to improve the reliability of appraisal in the future.
The system types related to domestic appraisal review are divided into an appraisal prescreening system and an appraisal postinvestigation and review system. Moreover, this study proposes a plan to establish their relationship. Further, it suggests prior tasks for introducing an appraisal review system in terms of setting its direction to improve the reliability of appraisal.
The following are the prior tasks for the introduction of an appraisal review system in Korea: (ⅰ) reaching a social consensus ; (ⅱ) preparing the legal basis and establishing a plan to link the screening system; (ⅲ) preparing the standards for the performance of appraisal review; and (ⅳ) improving the fee system.
Recently, there have been discussions on introducing an appraisal review system in line with environmental changes in the appraisal industry. However, the relationship between similar systems being implemented in Korea is ambiguous, and various issues emerge. Therefore, the direction of future implementation should be established by carefully considering the expected and side effects of the introduction of the appraisal review system.