@article{ART003349441},
author={Choi, Nam Seok and Lee, Sang Youb},
title={Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2026},
volume={36},
number={2},
pages={67-81}
TY - JOUR
AU - Choi, Nam Seok
AU - Lee, Sang Youb
TI - Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch
JO - Korea Real Estate Review
PY - 2026
VL - 36
IS - 2
PB - korea real estate research institute
SP - 67
EP - 81
SN - 2092-5395
AB - This study examines the effect of the closure of a large retail facility on the transaction prices of nearby apartments . It uses the 2024 closure of the Masan branch of Lotte Department Store as a quasi-natural experiment to analyze this effect. Based on apartment transaction data from Masanhappo-gu and Masanhoewon-gu in Changwon Special City (January 2021–December 2025), the study uses a two-way fixed effects model that combines a hedonic price framework with a difference-in-differences approach. The April 2024 closure announcement and the actual July 2024 shutdown are treated as separate events, and the identification strategy is examined through event-study evidence, placebo tests, and Wild Cluster Bootstrap-t inference.
The estimated post-closure average treatment effect is approximately 2.2%; however, it does not reach statistical significance. The post-period joint F-test in the event-study specification is also insignificant, indicating no clear evidence of an average post-closure price adjustment in the full sample. Supplementary distance-band and submarket analyses show relatively large negative announcement-period coefficients in the 500–1,000-m band and selected submarkets. However, these patterns warrant caution because they may partly reflect sample composition, peripheral locations, older housing characteristics, and longer-term structural decline in Masan area. This study complements the literature by providing a conservative empirical assessment of how a department store closure may affect housing values in a declining regional city and by highlighting the need to consider spatial and temporal heterogeneity.
KW - Department Store Closure;Hedonic Price Model;Difference-in-Differences;Quasi-natural Experiment;Spatial Heterogeneity
DO -
UR -
ER -
Choi, Nam Seok and Lee, Sang Youb. (2026). Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch. Korea Real Estate Review, 36(2), 67-81.
Choi, Nam Seok and Lee, Sang Youb. 2026, "Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch", Korea Real Estate Review, vol.36, no.2 pp.67-81.
Choi, Nam Seok, Lee, Sang Youb "Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch" Korea Real Estate Review 36.2 pp.67-81 (2026) : 67.
Choi, Nam Seok, Lee, Sang Youb. Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch. 2026; 36(2), 67-81.
Choi, Nam Seok and Lee, Sang Youb. "Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch" Korea Real Estate Review 36, no.2 (2026) : 67-81.
Choi, Nam Seok; Lee, Sang Youb. Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch. Korea Real Estate Review, 36(2), 67-81.
Choi, Nam Seok; Lee, Sang Youb. Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch. Korea Real Estate Review. 2026; 36(2) 67-81.
Choi, Nam Seok, Lee, Sang Youb. Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch. 2026; 36(2), 67-81.
Choi, Nam Seok and Lee, Sang Youb. "Impact of the Closure of a Major Retail Facility on Housing Prices : Evidence from the Shutdown of the Lotte Department Store Masan Branch" Korea Real Estate Review 36, no.2 (2026) : 67-81.
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