The Rent Adjustment Mechanism in Seoul Office Market

KIM, Kyung-MIn; Park Jungsoo

doi:10.15793/kspr.2009.62..012

@article{ART001377987},
author={KIM, Kyung-MIn and Park Jungsoo},
title={The Rent Adjustment Mechanism in Seoul Office Market},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2009},
volume={62},
pages={223-233},
doi={10.15793/kspr.2009.62..012}

TY - JOUR
AU - KIM, Kyung-MIn
AU - Park Jungsoo
TI - The Rent Adjustment Mechanism in Seoul Office Market
JO - The Korea Spatial Planning Review
PY - 2009
VL - 62
IS - null
PB - 국토연구원
SP - 223
EP - 233
SN - 1229-8638
AB - Natural vacancy rate, defined as a vacancy rate at equilibrium, has explanatory power in rent adjustment process. The estimation of natural vacancy rate for Seoul office market, however, is not figured out yet. In this venue, the study aims to 1) estimate natural vacancy rate of Seoul office market and 2) find rent adjustment process with excess vacancy. Using quarterly dataset since 1994, major findings are summarized as follows. First, there is an intertemporal variation in the natural vacancy rate of Seoul office market. If planned mega projects and/or office buildings in Seoul metropolitan area are delivered on time, the natural vacancy rate of Seoul office market after 2014 will be quite different comparing with the current one. Second, excess vacancy and real rent show negative correlation, confirming the existence of rent adjustment process. The last but not least, rental adjustment parameter falls into a range of 0.22 to 0.25. It implies that 1%point increase in excess vacancy will lead to 0.22~0.25% decline in real rent quarterly.
KW - Natural Vacancy;Rent Adjustment Rate;Excess Vacnacy;Office Market;Real Estate
DO - 10.15793/kspr.2009.62..012
ER -

KIM, Kyung-MIn and Park Jungsoo. (2009). The Rent Adjustment Mechanism in Seoul Office Market. The Korea Spatial Planning Review, 62, 223-233.

KIM, Kyung-MIn and Park Jungsoo. 2009, "The Rent Adjustment Mechanism in Seoul Office Market", The Korea Spatial Planning Review, vol.62, pp.223-233. Available from: doi:10.15793/kspr.2009.62..012

KIM, Kyung-MIn, Park Jungsoo "The Rent Adjustment Mechanism in Seoul Office Market" The Korea Spatial Planning Review 62 pp.223-233 (2009) : 223.

KIM, Kyung-MIn, Park Jungsoo. The Rent Adjustment Mechanism in Seoul Office Market. 2009; 62 223-233. Available from: doi:10.15793/kspr.2009.62..012

KIM, Kyung-MIn and Park Jungsoo. "The Rent Adjustment Mechanism in Seoul Office Market" The Korea Spatial Planning Review 62(2009) : 223-233.doi: 10.15793/kspr.2009.62..012

KIM, Kyung-MIn; Park Jungsoo. The Rent Adjustment Mechanism in Seoul Office Market. The Korea Spatial Planning Review, 62, 223-233. doi: 10.15793/kspr.2009.62..012

KIM, Kyung-MIn; Park Jungsoo. The Rent Adjustment Mechanism in Seoul Office Market. The Korea Spatial Planning Review. 2009; 62 223-233. doi: 10.15793/kspr.2009.62..012

KIM, Kyung-MIn, Park Jungsoo. The Rent Adjustment Mechanism in Seoul Office Market. 2009; 62 223-233. Available from: doi:10.15793/kspr.2009.62..012

KIM, Kyung-MIn and Park Jungsoo. "The Rent Adjustment Mechanism in Seoul Office Market" The Korea Spatial Planning Review 62(2009) : 223-233.doi: 10.15793/kspr.2009.62..012

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