Korea Real Estate Review 2021 KCI Impact Factor : 0.75

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pISSN : 2092-5395 / eISSN : 2733-8339

http://journal.kci.go.kr/krer
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2022, Vol.32, No.1

  • 1.

    Announcement and Withdrawal Effect of Residential Redevelopment on Residential Housing Market

    Sim, Jun Ho , Kim, Ji Hwan , Jin, Chang Ha | 2022, 32(1) | pp.7~23 | number of Cited : 0
    Abstract
    This study examines the announcement and withdrawal effects of redevelopment on residential housing price. Based on 15,540 multifamily housing transaction data from 2006 to 2018, we adopt the difference-in-difference method to examine a possible asymmetric effect of announcement and withdrawal of redevelopment project in Seoul. We find that the positive announcement effect exists with a 10% premium observed in the Seongbuk area, whereas a significant decrease is determined in the residential housing price in the Yeondeoungpo area. We attribute this to the increasing concerns about the 2018 Global Financial Crisis. Moreover, regarding the withdrawal effect of redevelopment, we find a decrease of 19% and 9% in both areas. Thus, the relative announcement and withdrawal effects of redevelopment are statistically significant. Therefore, communication with public and private participants is crucial to minimize a possible loss of social welfare.
  • 2.

    Estimation of Building Age Effect on Condominium Price based on the APC Model

    Yu, Jin , Chang-Moo Lee , Jung, Jung Uk | 2022, 32(1) | pp.25~39 | number of Cited : 0
    Abstract
    Redevelopment and reconstruction have been restrained despite the construction of new condominiums with improved quality in developed urban area. Due to limitations on the building age, its increases in the reconstruction requirements have affected condominium prices. By using the APC(Age- Period-Cohort) model, this study estimated the effect of building age on condominium prices when the quality of housing was controlled. An empirical analysis was conducted by dividing Seoul into two, north and south of the Han river. Results revealed that the construction year cohort effect exists, and that price increases have occurred corresponding to the quality standard requirements increasing around the 2000s. This is thought to have resulted from an imbalance in the supply and demand of high-quality housing. Therefore, this can be solved by supplying better quality housing through the reconstruction project. Also, Because of different patterns of building age effect by region, building age limitations should be flexible in different regions.
  • 3.

    An Empirical Analysis of Impacts of Income and Wealth on Homeownership

    Lee Jun-MIn , Seung Gyu Sim , Gihoon Hong | 2022, 32(1) | pp.41~54 | number of Cited : 0
    Abstract
    This paper sheds light on the distinct characteristics of freehold and leasehold households in terms of wealth and income. In particular, we exploit the two-stage logit regression analysis to identify the marginal effects of wealth and income separately. Our estimation results reveal that i) the marginal effect of wealth after controlling the wealth effect explained by the income effect significantly improves the freehold probability. However, ii) the marginal effect of income after controlling the income effect explained by the wealth effect significantly lowers the leasehold probability. In other words, the household with additional income that is not explained by its own wealth is less likely to have freehold ownership. The results imply that homeownership relies on wealth disparity rather than income disparity.
  • 4.

    The Influence of Shared Accommodation on Housing Rent

    Hong, Sung Jun , Chang-Moo Lee | 2022, 32(1) | pp.55~71 | number of Cited : 0
    Abstract
    Airbnb, a leader in shared accommodation, made an initial public offering in the NASDAQ market in December 2020 and recorded a market capitalization of USD 113 billion, surpassing that of the global no. 1, the Marriott hotel chain. Airbnb is growing rapidly; thus, overseas researchers actively conduct studies analyzing the relationship between Airbnb and housing rent. Many studies have shown that shared accommodation impacts the increase in the rent of the houses in the vicinity. This result compels major cities to implement regulatory policies to control its side effects. However, a few studies have been conducted on the relationship between Airbnb and housing rent in the context of Korea. Using 6,485 Airbnb data from January 2013 to December 2019, this study conducted an empirical analysis of the connection between the number of Airbnbs and monthly rent of apartments in Gangnam-gu, Seoul. Contrary to previous findings, this study found that Airbnb growth could have a negative effect on the monthly rent of local apartments while partly increasing consequences such as noise and parking, garbage, and security issues. This study suggests that Airbnb could cause a negative impact on the quality of living and economic growth.
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