Unpacking the Impact of Targeting Regulations

Abstract

The purpose of this study was to figure out the effect of local regulations introduced in Moon Jae-In's government on hotspot distribution of the turnover rate of real estate transaction for apartments in seoul. For the purpose, this study used the scan statistic and the logistic regression in order to identify the hotspot. As a result, three implications are as follows. First, local regulations introduced in specific regions will overheat existing popular ones should measures for supply increase. Second, the effect of local regulations on the turnover rate are different from legal districts due to the transaction composed of various areas and ages. Third, the local regulations by regions or prices overlapped in highly priced houses in speculation zones seem to have no additional effect on the hotspot. This study suggested an ironic conclusion that a specific market could be survived but others be paralyzed even if strong measure should be taken to popular apartments and a deep analysis and understanding of sub-markets by regions or prices under local regulations.