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Impact of International Schools on Apartment Sales Prices in the Surrounding Area: The Case of Songdo International Schools in Incheon Metropolitan City

Cheolsoo Kim 1 Shin, Gwang-Mun 2 Lee, Jae-Su 1

1강원대학교
2한국기후변화연구원 선임연구원

Accredited

ABSTRACT

This study examines the spatial and temporal impacts of Songdo international schools on housing sales prices in the surrounding area in Incheon Metropolitan City, Korea. In order to solve the problem of spatial autocorrelation that is inherent in the spatial data such as housing prices, multi-level models are estimated considering physical attributes and locational and environmental characteristics. In addition, the effect of major events by period on the apartment sales prices is quantified by employing the difference-in-differences method. Many of the controversies caused through the opening of international schools in Songdo New Town have had a significant influence on housing transactions and investment sentiment in the surrounding area. As a result, it has had a significant effect on the increase in surrounding housing prices based on the scheduled opening of international schools. In general, the demand for housing is important, but the controversy over the opening of international schools has increased uncertainty in the real estate market, and as the controversy over opening dates has continued, the cycle of rising and falling housing prices is repeated. The spatial impact of international schools on apartment sales prices range from 800 meters in radius. As of the initial scheduled opening date, the international schools have had a positive effect on apartment sales prices in the surrounding area. However, the opening of the schools does not significantly affect the apartment prices as the opening dates have been postponed twice. It is believed that the premium for the schools has disappeared due to growing uncertainties from the controversies over the opening of schools. This research is of academic significance in that this study is conducted in terms of the real estate market.

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* References for papers published after 2022 are currently being built.