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A Study on the Practical Appraisal about Expected Rates of Return in Rents

  • Korea Real Estate Review
  • 2014, 24(3), pp.133-147
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

권현진 1 Lee Young Ho 2

1한국부동산연구원 책임연구원
2(재)한국부동산연구원

Accredited

ABSTRACT

This study established the practical concept of rent appraisal and empirically analyzed the estimation of expected rate of return for rent appraisal. As a result, ranges of all expected return rates were wider than ranges of rates on “Land Compensation Guidelines”. In the case of residential lands and commercial lands, the wide range of expected return rates appeared differently according to the actual use of land. In addition, even the same type of real estate was different from the region to figure out return rates for rent appraisal. It was shown that the expected return rate reflects the market conditions in the region. These results suggest that rates of “Land Compensation Guidelines” should be revised and the specific application method of expected return rates on “Appraisal Practice Standard” should be presented.

Citation status

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