Korea Real Estate Review 2021 KCI Impact Factor : 0.75

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pISSN : 2092-5395 / eISSN : 2733-8339

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2021, Vol.31, No.4

  • 1.

    The Effects of Seller’s Credit Risk, Debt Condition, and Real Estate Asset on Apartment’s Asking Price

    Sung Ho Choi , Kyu-hyun Ji , Kim, Kyung Soo and 1 other persons | 2021, 31(4) | pp.7~17 | number of Cited : 0
    This study empirically analyzes the effect of the seller’s credit, debt condition, and real estate asset on the asking price. The result of the empirical models reveals that the asking price is affected not only by the spatial, physical characteristics but also by the seller’s debt to income (DTI), delinquency experience within the next 6 months from price listing, and loan to value (LTV) at the month of listing. The results show that the asking price rises when the seller’s LTV rises, whereas it reduces when the seller’s DTI and delinquency experience rate goes up. For credit conditions’ coefficients of empirical models, the effect of DTI on asking price is greater than the effect of LTV. These results lead to the following statements. Asking price is determined not only by the spatial physical characteristics of the house for sale but also by the seller’s capital conditions while minimizing seller’s credit risk. In the settlement of seller’s asking price, credit risk minimization is more powerful than the capital constrain conditions. The min– max process explains why one house for sale has lower asking price than the other with the identical appraisal value. This paper claims that the housing market study, especially about housing trade market, should simultaneously consider the seller’s credit risk and capital constrains and the spatial physical condition of house.
  • 2.

    The Effect of Subway Network Expansion on Housing Rental Price in Busan, Daegu Metropolitan City

    Cha, Hye Min , Kim, Ji Yeon , Chang-Moo Lee | 2021, 31(4) | pp.19~30 | number of Cited : 0
    The expansion effect of the subway line, which was mainly studied in the past, has been focused on improving the accessibility to the starting point. However, in this study, the shortened time to the destination is also considered a convenience benefit caused by the subway’s opening. We examined the expansion effect of Line 3 in Busan, where Lines 1 and 2 are currently operational. We also examined the effect of the extension of Line 2 in Daegu City. The analytical methods were employed by applying the “repeat sales model” that can be analyzed by time series. We also examined the effect of subway accessibility on the rent price of apartments from 2000 to 2010. The main results indicated that despite the unchanged distance from the existing subway, the utility of that station increased with the extension of the new route. The results of this empirical analysis can be used as a reference to determine the benefits and effects of establishing subway lines in terms of existing route users through cost analysis.
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