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http://dx.doi.org/10.7465/jkdi.2014.25.6.1361

An analysis on the change rate of housing rent price index  

Yeon, Kyu Pil (Department of Applied Statistics & Research Institute for Basic Science, Hoseo University)
Publication Information
Journal of the Korean Data and Information Science Society / v.25, no.6, 2014 , pp. 1361-1369 More about this Journal
Abstract
This research is for analyzing the change rate of housing rent price index produced by KAB (Korea Appraisal Board) in the monthly periodical, Survey on Housing Monthly Rent. The index is a very important and useful indicator to understand and diagnose the house rental market. However, the index is criticized in that it tends to decline when the price level of Jeonse (i.e., a typical type of dwellings in Korea, generally leased on a deposit basis for 1 or 2 years) is highly going up, which is inconsistent with the actual economic sentiment of tenants. We verify the reason why such phenomenon occurs and suggest a simple but novel method to analyze properly the change rate of the index. The main findings are as follows. The key factor to trigger the problem is the use of the conversion rate for Jeonse-to-monthly rent for constructing the rent price indexes. We separate the effect of the conversion rate out of the change rate of the index and quantify the adjusted real change rate showing an increase of the rent price level which is masked by the conversion rate before.
Keywords
Change rate of index; conversion rate for Jeonse-to-monthly rent; housing rent price index;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
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