The Effect of Transportation Policy Changes on Retail Market Trade Area Dynamics

Shin, Seung Woo; Kim, Gyoung Sun

doi:10.22313/reik.2018.16.3.215

Cited by 1 publication

(13 citation statements)

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“…We first briefly introduce tax assessment in Korea. As shown in Shin and Kim (2018), "There are approximately 40 million (MM) land parcels in Korea. Of these, approximately 32 MM land parcels have been assessed every year since 1990.…”

Section: Gwangjin District and Its Trade Areamentioning

confidence: 99%

“…This district consists of seven towns. Among them, as cited in Shin and Kim (2018), "the Guui-Gangbyeon (in short, Guui) Station area (447,749 m2) and KU Station area (214,509 m2) are, respectively, the 24th and 37th largest active sub-center areas in Seoul, Korea (Yim and Lee, 2016). The KU Station area was famous for an agglomeration of hair designer shops.…”

Section: Gwangjin District and Its Trade Areamentioning

confidence: 99%

“…Our investment analyses control for the impact of both the size of land lot's assessed value (firm-size effect as in the stock market performance literature) and distance from subway station on the realized rate of returns." To this end, as shown in Shin and Kim (2018), "we divide all the land lots used for commercial purposes, as of 2012, into four groups using both the assessed value and the measured gradient of each land lot: lots with higher assessed values and higher gradients (HVHG), lots with higher assessed values but lower gradients (HVLG), lots with lower assessed values but higher gradients (LVHG), and lots with lower assessed values 1 Most retail buildings in Korea consist of multiple unit shops under strata title. There is simply little or no institutionalized property market.…”

Section: ⅰ Introductionmentioning

confidence: 96%

“…According to Shin and Kim (2018), "The borders of any retail property market trade area continually change, resembling a living entity that might shrink, expand, or undergo expansion and reduction cycles. "This study visualizes intertemporal changes in such a market trade area and also test a couple of investment analyses.…”

Section: ⅰ Introductionmentioning

confidence: 99%

“…Here is reserved for the literature related to retail market trade area analyses. As cited in Shin and Kim (2018), "Ever since Christaller (1966) introduced central place theory in 1993, many papers have addressed the location choice of retailers. Eppli and Benjamin (1994), document most previous literature on location choice, market area analysis, homogeneous retail agglomeration, and retail demand externality to retail property valuation, including the valuation of lease contracts."…”

Section: ⅰ Introductionmentioning

confidence: 99%

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Investment Analysis by Using Tax Assessment Database on Land Lots in Gwangjin District, Seoul, Korea

Shin¹,

Kim²

2019

26th Annual European Real Estate Society Conference

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This paper addresses the issues regarding the performance evaluation of generic investment strategies in land lots in a retail market trade area in a district in Seoul, Korea.To this end, this paper investigates 1993-2016 data on 6,478 parcels of commercially used land parcels in Gwangjin District, one of 25 districts in Seoul, the capital city of South Korea. Gwangjin District extends over 17 km2, with33,307 land lots and a population of 366,939 as of 2015. Because tax assessments in this district are determined by both certified property appraisers (appraisal) and government staff (mass appraisal) in a pegged order, it is generally accepted that the resulting assessed numbers are biased to certain level. Thus, we use the gradient measure to eliminate the most likely biases. Our innovative term of gradient is calculated by subtracting the assessed value of one land lot from that of another in the neighborhood; simply put, the difference of assessed values of two land parcels within certain distance bands.We analyze whole land lots in this district currently used for commercial purposes (retail shops and small offices such as FIRE and clinics), along two dimensions: assessed values and their gradients. What we call the HVHG group consists of land lots with higher assessed values and higher gradients. The HVLG group consists of land lots with higher assessed values but lower gradients. We also consider LVHG (lower assessed values and higher gradients) and LVLG (lower assessed values and lower gradients) groups in our analysis. This research finds that the differences in mean returns between HVLG and other groups except HVHG group are statistically significant based on a paired t-test.We test a couple of investment analyses. Our investment analyses control for the impact of both the value of land lots and distance from subway station on the realized rate of returns. We find that both the smaller valued and remote from the station groups beat the other groups in a statistically significant manner. In addition, a simple one-year momentum land investment strategy is again tested and the result is statistically not significant. Finally, we also visualize the retail market area and intertemporal changes in the market area. Visualization and lower gradients (LVLG)."With these four groups, we wish to explore which among the four groups show the best long-term and/or mid-term performance with respect to both the realized assessed land value appreciation rate and the standard deviation of the assessed value series (Sharpe ratio) over the 23 years from 1993 to 2016. We can also test the generic investment performance analysis. The smaller, better hypothesis (small cap effect) is similar to an intertemporal performance analysis between small caps and large caps in the stock market performance literature as in Bauman, Conover and Miller (1998). Similarly, we measure the impact of distance from the four pooled subway stations in the district (KU, Gunja, Children's Park, and Guui stations); within a 200-m versus 200-to...

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Section: Gwangjin District and Its Trade Areamentioning

confidence: 99%

Section: Gwangjin District and Its Trade Areamentioning

confidence: 99%

Section: ⅰ Introductionmentioning

confidence: 96%

Section: ⅰ Introductionmentioning

confidence: 99%

Section: ⅰ Introductionmentioning

confidence: 99%

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