Browse > Article
http://dx.doi.org/10.6106/KJCEM.2014.15.2.112

An Analysis on the Investment Determinants for Insolvent Housing Development Projects  

An, Kukjin (Daewoo Engineering & Construction Company)
Cho, Yongkyung (Department of Real Estate Studies, Konkuk University)
Lee, Sangyoub (Department of Real Estate Studies, Konkuk University)
Publication Information
Korean Journal of Construction Engineering and Management / v.15, no.2, 2014 , pp. 112-121 More about this Journal
Abstract
After IMF bailout crisis in Korea, project financing has been employed as a major funding vehicle for the housing development. In 2008, the recession of housing market due to the global financial crisis had an significant impact on the increasing insolvent site of PF based housing development project, resulting in serious impact to whole economy as a chain effect. In order to resolve this vicious circle of bankruptcy, the major construction companies were urged to take over the insolvent sites and invest to them for normal project exit, and finally play a critical role in normalization of market. Therefore, this study aims to define the core factors for decision making to invest to insolvent site and find out differences among constructors, developers, financial lenders. The results from AHP analysis, the profitability was the most important factor to constructors. Moreover, even though the location merit is little less, through competitive price, we can assure that stable profitability is most important factor to decide to invest in insolvent site. In conclusion, the price is cheap, is highly feasible, if the land secured, major construction company will participate in a PF business investment. These findings were verified by the investment case of major construction company.
Keywords
Housing development PF; Insolent PF; Investment Determinants;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Kim, M. (2005). "A Study on the Method of the Risk Management in the Real Estate Development Project : focused on the housing development project." Construction Economy Research Institute of Korea, Seoul Korea.
2 An, Y. (2006). "The Application of effective finance in Private Housing Development." MS thesis, Konkuk University, Seoul, Korea.
3 Cho, J. (2002). "A Study on Project Financing in Real Estate Development." Housing Studies Review, KAHPS, 10(2), pp. 125-147.
4 Cho, K., Cho, Y., and Kang, H. (2005). "Analytic Hierarchy Process." Donghyun publisher, pp. 10--11.
5 Cho, Y., Lee, J., and Lee, S. (2011). "A Study on Importance of Factors in Remodeling for Aged Apartment Housing : Using the Fuzzy-AHP Method." Review of Real Estate and Urban Studies, RIREUS, 4(1), pp. 101-116.
6 Financial Supervisory Service (2011). "The 303rd Operational Report (inspection of the administration)", Seoul,Korea.
7 Jeong, H., and Lee, S. (2006). "A Study on the Feasibility Method for Construction Project Financing." Conference Review, AIK, 26(1), pp. 549-552.
8 Kim, B. (2011). "A study on the efficiencies of real estate PF." Korean Business Education Review, KABE, 20, pp. 29-52.
9 Kim, J. (2006). "A Study on Analyzing Risk Factors of Real Estate Development Project: Focused on Real Estate Developer." MS Thesis, Konkuk University, Seoul, Korea.
10 Kim, J., and Lee, J. (2007). "A Study on Plans for Activating the Real Estate Finance System." Journal of Residential Environment Institute of Korea, REIK, 5(1), pp. 94-119.
11 Kim, S., Jung, B., and Kim, J. (1999). "Analysis and application of decision making." Youngji Publishers, Seoul, Korea.
12 Kwon, Y. (2008). "Evaluation System on Decision-making of Project Financing in Real Estate Development." MS Thesis, Yonsei University, Seoul, Korea.
13 Lee, J. (2009). "Identification of Risk Factors and Risk Management in the Housing Development Project." PhD. Thesis, Hanyang University, Seoul, Korea.
14 Lee, C., and Kim, S. (2009). "Analyzing Risk Factors of the Real Estate Project Financial." Review of architecture and building science, AIK, 25(2), pp. 159-166.   과학기술학회마을
15 Lee, S., Moon, H., and Lee, S. (2004). "The Current State and Application of project Financing followed by Sale after Building System of the Apartment." Korean Journal of Construction Engineering and Management, KICEM, 5(6), pp. 218-225.   과학기술학회마을
16 Lee, J. (2005). "A Study on the Risk Management of Real Estate Development Project: Focused on the Project in using Project Financing." MS Thesis, Konkuk University, Seoul, Korea.
17 Park, D. (2000). "A Study on the Effective Application of the Project Finance to the Korean Private Infrastructure Projects." Korean Journal of Construction Engineering and Management, KICEM, 1(4), pp. 67-73.   과학기술학회마을
18 Satty, T. L. (1980). "The Analytic Hierarchy Process." McGraw Hill, New York, USA.
19 You, J., and Oh, D. (2010). "Efficient Management Scheme for Insolvent Development Site in Real Estate Project Finanacing." Journal of the Korea Real Estate Analysis Association, KREAA, 16( 3), pp. 99-144.
20 Yun, H. (2009). "A Study of Project Financing for Housing Development in Korea." Korea Real Estate Review, KRERI, 19(2), pp. 175-190.
21 Lee, H., Shin, J., and Park, S. (2011). "A study on Improvement Plans for Project Financing by the Change of Real Estate Market." The Journal of the Korean Urban Management Association, KUMA, 24(1), pp. 107-123.
22 Choi, S. (2012). "A Study on the Cause for Insolvency of Real Estate PF since the Global Financial Crisis and Its Revitalization Scheme." MS thesis, Konkuk University, Seoul, Korea.