@article{ART001547272},
author={신우진 and Kim Ju Young},
title={A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2011},
volume={21},
number={1},
pages={51-72}
TY - JOUR
AU - 신우진
AU - Kim Ju Young
TI - A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market
JO - Korea Real Estate Review
PY - 2011
VL - 21
IS - 1
PB - korea real estate research institute
SP - 51
EP - 72
SN - 2092-5395
AB - As the transfer system of FAR has lively been argued, measuring the value of FAR (Floor-Area-Ratio) has become more important than ever. The one of the pre-requisite for success in the transfer system of FAR is to estimating the proper supply and demand of FAR. This is because that the demands on FAR would be determined by the optimal FAR in the area where the net value is high. Nonetheless, the most studies have focused on apartments’ FAR rather than commercial properties such as office, retail, etc. In this study, the optimal FAR and the net value on the optimal FAR in office and retail sub-markets were estimated using 108 office properties and 104 retail properties in Kangnam Market, Seoul.
Study results showed that the optimal FARs in office sub-markets ranged from 887% to 1,117%, which was almost same with the highest FAR of samples in each sub-market. The net value on the optimal FAR in the Seo-Cho office sub-market is about 12.9MKW (million korean won)/㎡. On the other hand, the net value on the optimal FAR in Teheran-Valley (Yeok-Sam, Sam-Sung, Sun-Reung) sub-markets ranged from 7.1MKW/㎡ to 8.2MKW/㎡ due to high land purchasing price.
In retail market, the optimal FARs in retail sub-markets ranged from 196% to 234%, which was almost same with the average FAR of samples in each sub-market. The net value on the optimal FAR in the Kangnam-Yeok retail sub-market was about 10.9MKW/㎡, which was approximately twice of the net profit on the optimal FAR in other retail sub-markets.
This study is expected to make a significant contribution to examine the net value on non-residential properties in office and retail sub-markets. The result will also be helpful tips for owners of, or investors for office or retail properties when they consider to invest the office or retail properties.
KW - optimal FAR (Floor-Area-Ratio);diminishing marginal utility;net value;office;retail
DO -
UR -
ER -
신우진 and Kim Ju Young. (2011). A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market. Korea Real Estate Review, 21(1), 51-72.
신우진 and Kim Ju Young. 2011, "A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market", Korea Real Estate Review, vol.21, no.1 pp.51-72.
신우진, Kim Ju Young "A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market" Korea Real Estate Review 21.1 pp.51-72 (2011) : 51.
신우진, Kim Ju Young. A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market. 2011; 21(1), 51-72.
신우진 and Kim Ju Young. "A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market" Korea Real Estate Review 21, no.1 (2011) : 51-72.
신우진; Kim Ju Young. A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market. Korea Real Estate Review, 21(1), 51-72.
신우진; Kim Ju Young. A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market. Korea Real Estate Review. 2011; 21(1) 51-72.
신우진, Kim Ju Young. A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market. 2011; 21(1), 51-72.
신우진 and Kim Ju Young. "A Study on Estimating the Optimal Floor Area Ratio of Office and Retail: Focused on Kangnam Market" Korea Real Estate Review 21, no.1 (2011) : 51-72.
