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http://dx.doi.org/10.14400/JDC.2014.12.2.45

Correlation Analysis Among the Price of Apartments in Seoul, Stock Market and main Economic Indicators  

Choi, Jeong-Il (Dept. of Business, Sung Kyul University)
Lee, Ok-Dong (Dept. of Real Estate, Sung Kyul University)
Publication Information
Journal of Digital Convergence / v.12, no.2, 2014 , pp. 45-59 More about this Journal
Abstract
Real estate has been the most preferable investment asset since 1980's has begun. Especially the ups and downs of housing price influence significantly on the household and national economy for a digital economy. In this analysis, monthly movement of apartment price of Seoul and its correlation with KOSPI, construction concerned shares, securities concerned shares, interest rate and exchange rate for 320 months(from January, 1987 to August, 2013) are shown. From the analysis, correlation coefficient of the price of apartment in Seoul and KOSPI is 0.8566 which is highly positive while the price of apartment in Seoul and interest rate are shown strong negative correlation which is -0.7846. The rise of stock market does affect the rise of the price of apartments in Seoul, on the contrary, the price goes down when the interest rate goes up.
Keywords
Digital Economy; Price of Apartments in Seoul; KOSPI; Interest Rate; Exchange Rate; Correlation;
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