2015, Vol.25, No.1

Korea Real Estate Review 2023 KCI Impact Factor : 0.56

pISSN : 2092-5395 / eISSN : 2733-8339
https://journal.kci.go.kr/krer

In this paper, we examine the relationship between household financial debt and the types of housing by using random-and fixed-effects tobit models with Korean Labor and Income Panel Survey. We find that the effects of leasing a house would be small on the household debt, relative to homeowners. In addition, the effects of living in an apartment or flats with shops in comparison to living in a detached house have been smaller on household debt over the period 2006-2010 than 1998-2005. Furthermore, we find that over the whole period 1998-2010, the financial debt gap between homeowners and leaseholders has been smaller in Seoul than in Busan or Daegu, and over the period 2006-2010 the financial debt gaps in Seoul and Busan have been both greater than before. Finally, it is noticeable that the effects of living in an apartment on household financial debt have been negligible during the same period. This empirical result may show, to some extent, the effects of the Debt-to-Income policy implemented by the Korean government in 2006.

This study aims at analyzing the rent characteristics of Garak market which is the biggest domestic Agricultural & Marine Products Wholesale Market in Korea. The main methodology used in this study is a two stage method using Huff's probability model and multiple regression analysis. In general, the rent characteristics of retail stores in the Garak market differ from those in general markets around the Garak market. Therefore the two stage methodology enables to estimate and analyze the rents and the rent characteristics of retail stores in the Garak market. The main results are as follows. First, as expected, the basic rental rates based on market-share and actual rental rates showed a substantial correlation with the exception of some outliers. Second, coefficient of determination of both direct sales stores and convenient facilities in the Garak market were much higher than those of general stores around the Garak market. Since the functions of market share and market area affect rents of stores among building facilities, as a result of examining the dispersion of the rents among building facilities, it could be evaluated that their stores’ rents work according to market mechanism. However, the authors reconfirmed that rents in the individual store units were worked by the formal criteria of operating management corporation rather than by market oriented way based on both a supply and demand principle and each store’s competitiveness.

The purpose of this study is to explore housing wealth effects of homeowners on household expenditure on non-durable products and services. The age cohorts are divided into four distinct groups – young(35-44), early middle-aged(45-54), late middle-aged(55-64) and older(65 and older), and their wealth effects are examined in accordance to region(Seoul Metropolitan Area, SMA vs. non-SMA), housing structure type(apartment vs. non-apartments), and household debt-to-asset ratio(less than 25% vs. more than 25%). Using the 15th Korean Labour and Income Panel Study(KLIPS), this research analyzes 1,612 home-owning households. The statistical results reveal that annual household income and non-durable consumption are the greatest in the early middle-aged group, and each amount of financial, housing and real estate assets is the largest in the late middle-aged group. Household debt-to-asset ratio is found to be disproportionate to age. Further, it’s statistically significant that housing wealth has much stronger effects on household spending than does financial asset or real estate asset. Indeed, the consumption elasticity is greater for households living outside SMA, residing in non-apartments and holding lower debt-to-asset ratio. In particular, the young group with less than 25% of debt-to-asset ratio living in apartment outside SMA is likely to actively tap into their housing windfalls. Thus, the empirical findings explicitly support that housing wealth effects vary with different age groups, and rising housing wealth enables households to reduce insurance against future contingencies.