An analysis on apartment prices in representative metro station spheres in Yongin-City

Oh, Young-Kyung; Lee, Sangin; Yoo, Seon-Jong

doi:10.22313/reik.2021.19.2.147

Cited by 3 publications

(1 citation statement)

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“…Kim and Ji (2019) estimated that investors are willing to pay 1,000 KRW/m 2 –76,000 KRW/m 2 (0.1 USD/m 2 –7 USD/m 2 ) or 0.3–1.4% premiums for an apartment with a southern orientation. Most recently, Oh et al . (2021) estimated the premium of south-facing houses located adjacent to subway stations to be 630,000 KRW/m 2 (57 USD/m 2 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring property orientation preferences and local variations

Lee

2023

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PurposeProperties with specific orientations are preferred in South Korea, depending on the real estate market. This preference is usually considered during property transactions and in designing buildings. Despite the importance of property orientation, the magnitude of preference for favored orientation has rarely been empirically estimated in the literature. This study attempts to estimate the value of favored orientation in a quantitative manner and interpret the results.Design/methodology/approachUsing a geographically weighted regression model, this study obtains nationwide property price data and estimates the strength of orientation preference, that is, the premium for favored orientation. Among the various property types, residential sites and forests were investigated because the orientation of these two property types is known to influence their sales prices in the Korean real estate market.FindingsThe results show that premiums for south-facing residential sites exist in the market, varying locally and ranging from zero to 13.2%, over residential sites with non-south orientations. The results for forests are mixed in that a south-facing forest commands a maximum of 33.1% premium in a certain region, over a forest with a non-south direction, while it also commands a maximum of 33.8% negative premium (discount) in another region, indicating significant local variations in premiums.Originality/valueThese findings are expected to be utilized in fields such as property valuation, house architecture and design.

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Section: Literature Reviewmentioning

confidence: 99%