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@article{ART002001423},
author={KIm, Jung Sun and Yu, Jung Suk},
title={The Appropriateness of the Expected Interest Rates Based on Use Value},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2015},
volume={25},
number={2},
pages={5-20}

TY - JOUR
AU - KIm, Jung Sun
AU - Yu, Jung Suk
TI - The Appropriateness of the Expected Interest Rates Based on Use Value
JO - Korea Real Estate Review
PY - 2015
VL - 25
IS - 2
PB - korea real estate research institute
SP - 5
EP - 20
SN - 2092-5395
AB - In this study, we aim to clarify the theoretical definitions of ‘underlying price’ and ‘expected interest rate’ in question, and calculate the expected interest rates of both 'lease on a deposit basis' and 'monthly rent' depending on use values in 25 autonomous Gus in Seoul and then verify whether accurate when market rents are considered. First, the expected interest rate depending on use value is found to vary by autonomous Gus and smaller areas, and for accurate calculation of estimation-method rent, it seems to be necessary to set detailed standards for calculating the expected interest rate currently classified only by the measures of metropolitan cities and by the property types. Second, the current expected interest rate when market value is applied to underlying price depending on the type of apartment in Seoul is 5.4%∼6.0%, whereas the expected interest rate when use value is applied is calculated at 4.23%∼4.75%. This suggests that expected interest rate varies according to the definition of the concept of underlying price. Third, estimation-method rent and market rent based on the currently presented expected interest rate are overestimated 2.584∼2.118 times on average, but when based on use value those are underestimated 0.922∼1.033 times.
KW - Cost-plus-Margin Method rent;Underlying price;Expected interest rate;Use value
DO -
UR -
ER -

KIm, Jung Sun and Yu, Jung Suk. (2015). The Appropriateness of the Expected Interest Rates Based on Use Value. Korea Real Estate Review, 25(2), 5-20.

KIm, Jung Sun and Yu, Jung Suk. 2015, "The Appropriateness of the Expected Interest Rates Based on Use Value", Korea Real Estate Review, vol.25, no.2 pp.5-20.

KIm, Jung Sun, Yu, Jung Suk "The Appropriateness of the Expected Interest Rates Based on Use Value" Korea Real Estate Review 25.2 pp.5-20 (2015) : 5.

KIm, Jung Sun, Yu, Jung Suk. The Appropriateness of the Expected Interest Rates Based on Use Value. 2015; 25(2), 5-20.

KIm, Jung Sun and Yu, Jung Suk. "The Appropriateness of the Expected Interest Rates Based on Use Value" Korea Real Estate Review 25, no.2 (2015) : 5-20.

KIm, Jung Sun; Yu, Jung Suk. The Appropriateness of the Expected Interest Rates Based on Use Value. Korea Real Estate Review, 25(2), 5-20.

KIm, Jung Sun; Yu, Jung Suk. The Appropriateness of the Expected Interest Rates Based on Use Value. Korea Real Estate Review. 2015; 25(2) 5-20.

KIm, Jung Sun, Yu, Jung Suk. The Appropriateness of the Expected Interest Rates Based on Use Value. 2015; 25(2), 5-20.

KIm, Jung Sun and Yu, Jung Suk. "The Appropriateness of the Expected Interest Rates Based on Use Value" Korea Real Estate Review 25, no.2 (2015) : 5-20.