@article{ART001505192},
author={Han, Dong-Geun},
title={Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2010},
volume={67},
pages={57-71},
doi={10.15793/kspr.2010.67..004}
TY - JOUR
AU - Han, Dong-Geun
TI - Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu
JO - The Korea Spatial Planning Review
PY - 2010
VL - 67
IS - null
PB - 국토연구원
SP - 57
EP - 71
SN - 1229-8638
AB - The paper identifies factors affecting rent/price ratio (thereafter, R/P ratio) in Korean housing market, and investigates if the R/P ratio could be a predictor on rent and house price movements in the near future. We use monthly data from 1998 to 2009 in Seoul, Daejeon, and Daegu metropolitan city.
Results are as follows. Firstly, the R/P ratio is positively related with interest rate and negatively with expected capital gains, which is supported by a traditional asset-price theory. Secondly, the R/P ratio predicts rent movements, but does not predicts changes in housing price well. Thirdly, the impact of the R/P on the rent gets smaller as the location gets distanced further from Seoul. Lastly, interest rate influences housing price but not rent.
With all the results combined, we may say that the changes in housing price are largely influenced by interest rates and expected capital gains, but not by rents. Rents, however, are affected by the changes of housing price. Our results imply that stabilization of housing price is necessary to stabilize rents, and not vice versa.
KW - Rent/price Ratio;Housing Price;Housing Rent
DO - 10.15793/kspr.2010.67..004
ER -
Han, Dong-Geun. (2010). Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu. The Korea Spatial Planning Review, 67, 57-71.
Han, Dong-Geun. 2010, "Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu", The Korea Spatial Planning Review, vol.67, pp.57-71. Available from: doi:10.15793/kspr.2010.67..004
Han, Dong-Geun "Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu" The Korea Spatial Planning Review 67 pp.57-71 (2010) : 57.
Han, Dong-Geun. Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu. 2010; 67 57-71. Available from: doi:10.15793/kspr.2010.67..004
Han, Dong-Geun. "Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu" The Korea Spatial Planning Review 67(2010) : 57-71.doi: 10.15793/kspr.2010.67..004
Han, Dong-Geun. Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu. The Korea Spatial Planning Review, 67, 57-71. doi: 10.15793/kspr.2010.67..004
Han, Dong-Geun. Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu. The Korea Spatial Planning Review. 2010; 67 57-71. doi: 10.15793/kspr.2010.67..004
Han, Dong-Geun. Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu. 2010; 67 57-71. Available from: doi:10.15793/kspr.2010.67..004
Han, Dong-Geun. "Rent/Price Ratio, Rent, and Housing Price: Case of Seoul, Daejeon, and Daegu" The Korea Spatial Planning Review 67(2010) : 57-71.doi: 10.15793/kspr.2010.67..004
