• The Journal of the Korea Contents Association
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• v.13 no.1
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• pp.456-466
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• 2013

The most important thing to develop real estate asset would be a feasibility study. To secure feasibility of development projects, reducing and minimizing the cost of land and construction also would be the important thing. To analyze optimal land-value for real estate development projects, I have collected 204 balance sheets of development projects in South Korea. With the help of statistical technology, I could have selected useful data from those balance sheets. After detailed analysis of statistical data, I could have reached conclusion that the most important factor to earning rate would be land cost per unit ground area under the constraint of given sale price. So far the main pattern of feasibility study of development projects was land cost and construction cost. However, by this study, I have found a new fact that construction cost has little effect to earning rate and land cost per unit ground area is the most effect to earning rate especially in residential facilities rather than commercial ones.