@article{ART002063692},
author={Min, Seonghun},
title={An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2015},
volume={87},
pages={67-80},
doi={10.15793/kspr.2015.87..005}
TY - JOUR
AU - Min, Seonghun
TI - An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market
JO - The Korea Spatial Planning Review
PY - 2015
VL - 87
IS - null
PB - 국토연구원
SP - 67
EP - 80
SN - 1229-8638
AB - A security deposit is traded between the landlord (demander) and the tenant (supplier) for the purpose of leverage as well as security functions in Korea. In this study, the relationship between the amount of security deposit and the conversion rate is analyzed through office market data in Seoul. The amount of security deposit is calculated by two methods: the security deposit to monthly rent ratio (DTR) and security deposit to value ratio (DTV). DTR is related to the security function. The conversion rate would decrease as DTR increases because the marginal utility of the landlord would decrease as DTR increases. However, DTV is related to the leverage function. The conversion rate would increase as DTV increases because the risk premium for the tenant would increase as DTV increases. Empirical results suggest that the hypotheses above are significantly substantiated, so the relationship between the amount of security deposit and the conversion rate is not linear. This result has been the case for several literatures on the residential and retail property markets in Korea.
KW - Conversion Rate;Security Deposit;Security Function;Leverage Function
DO - 10.15793/kspr.2015.87..005
ER -
Min, Seonghun. (2015). An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market. The Korea Spatial Planning Review, 87, 67-80.
Min, Seonghun. 2015, "An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market", The Korea Spatial Planning Review, vol.87, pp.67-80. Available from: doi:10.15793/kspr.2015.87..005
Min, Seonghun "An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market" The Korea Spatial Planning Review 87 pp.67-80 (2015) : 67.
Min, Seonghun. An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market. 2015; 87 67-80. Available from: doi:10.15793/kspr.2015.87..005
Min, Seonghun. "An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market" The Korea Spatial Planning Review 87(2015) : 67-80.doi: 10.15793/kspr.2015.87..005
Min, Seonghun. An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market. The Korea Spatial Planning Review, 87, 67-80. doi: 10.15793/kspr.2015.87..005
Min, Seonghun. An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market. The Korea Spatial Planning Review. 2015; 87 67-80. doi: 10.15793/kspr.2015.87..005
Min, Seonghun. An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market. 2015; 87 67-80. Available from: doi:10.15793/kspr.2015.87..005
Min, Seonghun. "An Empirical Analysis on the Change of Conversion Rate by the Amount of Security Deposit in Seoul Office Rental Market" The Korea Spatial Planning Review 87(2015) : 67-80.doi: 10.15793/kspr.2015.87..005
