Journal of Korea Planning Association (국토계획)

Korea Planning Association (대한국토도시계획학회)
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The Impact of Earthquake on Apartment Price - Focused on Gyeongju Earthquake Case in South Korea -

지진 발생이 아파트 가격에 미치는 영향 - 2016년 9월 12일 경주 지진 사례를 중심으로 -

  • Yeom, Jae-Weon (Department of Urban Planning and Engineering, Pusan National University) ;
  • Jung, Ju-Chul (Department of Urban Planning and Engineering, Pusan National University)
  • Received : 2018.08.27
  • Accepted : 2019.01.09
  • Published : 2019.02.28
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Abstract

The purpose of this study is to analyze the impact of earthquake on apartment prices. Many studies have been done analyzing the relationship between natural hazards and residential property prices. Most studies have shown that natural hazards have an negative effect on residential property prices, but some studies have shown that natural hazards have an positive effect on residential property prices. These conflicting analysis result from the lack of considering natural hazard frequency at the analysis site. According to literature reviews risk avoidance tendency are already inherent in prices, thus distorting the relationship between natural hazards and prices. That is, in order to analyze the impact of natural hazards on residential property prices, analysis must be carried out in areas where there has not suffered natural hazard for a long time or where there has been no damage before. Nevertheless, previous studies analyzed areas frequently affected by natural hazards. Gyeongju has been recognized as a safe area from earthquake in the past, an 5.8 magnitude earthquake occurred in September 2016. Analysis results focusing on Gyeongju Earthquake case has shown that the earthquake has affected decrease of apartment prices in hazardous areas, and after earthquake apartment prices have risen over time.

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References

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