• Journal of Digital Convergence
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• v.17 no.1
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• pp.55-62
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• 2019

This study analyzed the relationship between housing price, purchase price, Gini coefficient, interest rate, and the employment, considering that the change in housing price was an important factor influencing macroeconomic variables and income inequality. The panel VAR model was constructed considering the panel data, and the Granger causality, Impulse response and Variance dispersion analysis were performed. As a result, when compared to before and after the global financial crisis, it was shown that the rent price had an effect on income inequality, but in the following period, both the rent price and the selling price affected the income inequality. And that it has a large impact on inequality. In addition, the causality between income inequality and employment rate, interest rate, and tax rate was confirmed. Therefore, it is expected that it will be a desirable policy to mitigate income inequality considering the influence of policy variables for economic activation including government real estate policy.

• The Journal of the Convergence on Culture Technology
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• v.9 no.3
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• pp.281-286
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• 2023

This study analyzed the causal relationship between housing sales prices and jeonse prices in Seoul, specifically in the Gangnam and Gangbuk neighborhoods. The time-invariant Granger causality test showed bidirectional causality between the sales price and the jeonse price in Seoul and Gangbuk, but no bidirectional causality was found in Gangnam. However, the time-varying Granger causality test showed a Granger causal relationship between the housing jeonse price and the sales price for the entire period after 1993 in all three areas. Notably, the causal effect of jeonse prices on sales prices has been continuous in Gangnam since 2010. These analysis results suggest that an increase in liquidity supply to the jeonse market could increase volatility throughout the housing market, given the strong influence between the sales and jeonse markets in both directions.

• Journal of the Economic Geographical Society of Korea
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• v.20 no.3
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• pp.405-418
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• 2017

SHIFT is public rental housing policy introduced by Seoul Metropolitan in 2007, which works as Chonsei(korean unique deposit rental system). This paper examines the effect of SHIFT on Chonsei prices of neighborhood apartments. To estimate the change in prices of Chonsei after the provision of SHIFT, I collect data on Chonsei prices of apartments within a 5km radius from the SHIFT housings. Summary of main results are following. Chonsei prices of the apartments within a 2-3km radius decreased by 4.4% after the provision of SHIFT housings. In contrast, when it comes to apartments within a 1-2km radius, I can't find the stochastic relationship between the provision of SHIFT hosing and price changes. This results can be explained by "Offset effects" caused by real estate development. Provision of SHIFT can sequentially induce nearby area's development, which plays a factor in the effect of price increases. And this offset effects varies in each apartment complex depending on demand for Chonsei and supply of the SHIFT.

• Land and Housing Review
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• v.4 no.1
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• pp.43-54
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• 2013

This This paper investigates the variation of the factors to determinate housing price in Seoul metropolitan area after sub-prime financial crisis, in Korea, using a VAR model. The model includes housing price and housing rent (Jeonse) in Seoul metropolitan area from 1999 to 2011, and uses interest rate, real GDP, KOSPI, Producer Price Index and practices to impulse response and variance decomposition analysis to grasp the dynamic relation between a variable of macro economy and and a variable of housing price. Data is classified to 2 groups before and after the 3rd quater of 2008, when sub-prime crisis occurred; one is from the 1st quater of 1999 to the 3rd quater of 2008, and the other is from the 2nd quater of 1999 and the 4th quater of 2011. As a result, comparing before and after sub-prime crisis, housing price is more influenced by its own variation or Jeonse price's variation instead of interest rate and KOSPI. Both before and after sub-prime financial crisis, Jeonse price is also influenced by its own variation and housing price. While after sub-prime financial crisis, influences of Producer Price Index, KOSPI and interest rate were weakened, influence of real GDP is expanded. As housing price and housing rent are more influenced by real economy factors such as GDP, its own variation than before sub-prime financial crisis, the recent trend that the house prices is declined is difficult to be converted, considering domestic economic recession and uncertainty, continued by Europe financial crisis. In the future to activate the housing business, it ia necessary to promote purchasing power rather than relaxation of financial and supply regulation.

• Korean Journal of Construction Engineering and Management
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• v.13 no.2
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• pp.128-136
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• 2012

In this study, we investigated the macroeconomic variables that affect housing prices thus creating a large impact on people's lives as well as the real estate market. For the study, the macroeconomic variables able to influence the House Rental Price (housing price by lease or deposit) were used for an analysis as follows: housing sales price index, household loans rate, total household savings, the number of employees and a multiple regression analysis was performed using a time series for each macroeconomic variable. As a result of the analysis, the House Rental Price was affected by all of four macroeconomic variables. The House Rental Price increased as each variable enlarged. In conclusion, this study may be useful for finding a solution for stabilizing the House Rental Price as well as for the establishment of efficient and sustainable policies for the housing market.

• Korea Real Estate Review
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• v.24 no.1
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• pp.15-26
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• 2014

Using multivariate GARCH model, we estimate the relationship between the housing sale prices and lease prices in the Korean housing market. In the analysis of relationship between the rate of changes in sale and lease prices, the correlation coefficient of the apartment and detached house is higher than that of the townhouse. By housing type, the correlation coefficient between detached house and townhouse is higher than between apartment and detached house or apartment and townhouse. By housing size, there are no significant different results between the sales price and the rental price. The correlation coefficient between medium and small size is the highest in the apartment housing market, whereas the correlation coefficient between large and medium size is the highest in the detached housing market, resulting from the fact that people may be more interested in medium- and small-sized apartment and large- and medium-sized detached house. In the detached housing market, the correlation coefficient between large-medium size and medium-small size in the rental price is higher than that of sales price. This result implies that the process of the decision making between purchasing and leasing a house might be different.

• Journal of the Korean Geographical Society
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• v.35 no.5
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• pp.717-729
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• 2000

Housing prices in the Korean housing market dropped at an unprecedented magnitude in 1998 after the economic crisis. With the support of housing policies to boost depressed housing markets, house prices managed to bounce back after the mid-1999. During the period of housing price decline and of its recovery, the degrees of house price changes were not even across the country. The cities could be classified into four groups regarding the differential rates of house price changes. The cities which had higher rates of decrease also had higher rates of increase. On the other hand, some other cities continuously experienced a price fall during the recovery period although the rate of housing price changes were relatively low after the economic crisis. Throught the processes of administering housing market depression due to the crisis of the economy, the cities which could fully redeem the level of house prices in housing markets between the Seoul Metropolitan area and the other parts of the country has been widened.

• The Journal of the Korea Contents Association
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• v.15 no.10
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• pp.457-467
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• 2015

Despite the recent phenomena of Chonsei price increase, low interest rate and low growth, the indexes of financial and insurance industry production showed the results contrary to the common belief that the financial industry is sensitive to such financial crises. This is because the index of financial industry has continuously maintained a certain level of increase as opposed to the index of all industry production. Thus, this study aimed to analyze the dynamic correlation between the index of financial industry production and Chonsei price increase. A vector autoregression (VAR) model, which doesn't have a cointegrating relationship, was used to define the Chonsei price index and the indexes of all industry production and financial and insurance industry, which are macro economic variables, and describe the data. The results of the analysis on the time series data of 183 months from January 2000 to May 2015 showed that Chonsei price increase was not directly derived from the index of financial industry, but the finance industrial index affected Chonsei price increase.

• Korean Journal of Construction Engineering and Management
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• v.13 no.6
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• pp.153-164
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• 2012

Since the sub-prime mortgage crisis from the US in 2008, Korean housing market has plummeted. However, Korean local lease contract, Chonsei, price has been increasing. This increase of Chonsei price can be a threat to the low-income people because most of them prefer to live at the house with a Chonsei contract. In order to solve this problem, the Korean Government implemented several Chonsei policies to secure low-incomers' residence by decreasing the price of Chonsei; however, due to the lack of understanding on housing and Chonsei market, Korean government policy seemed to fail on getting effective results. In the housing and Chonsei market, there are many stakeholders with their own interest, hence, simple thoughts about housing and Chonsei market, such as more house supply will decrease house price, would not work in a real complex housing market. In this research, we suggests system dynamics conceptual model which consists of causal-loop-diagrams for the Chonsei market as well as the housing market. In addition, we tries to explain why the policy did not work effectively using the examples from the government's past measures. In results, Chonsei price has its own homeostasis characteristic and different price movement with housing price in the short and long term period. Unless government does not have a structural causation mind in implementing policies in the real estate market, the government may not attain intended effectiveness on both markets.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.3
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• pp.518-527
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• 2016

The housing market is changing continuously according to the place and time and these changes have a ripple effect across various fields. On the other hand, the amount of housing that is consumed in the region also acts as a central cause of price movement. Moreover, the cause of variations in the housing market can be separated according to the characteristics of the housing consumer. In addition, the individual characteristics of the consumer varies according to the region. As a result, a study on the regional causal relationship of the housing market is underway. Although significant research has been done on the domestic home sales market, there has been limited research on the housing charter market. Therefore, in this paper, regional causal relationship of the housing market in the Gangnam and Gangbuk area in Seoul and Gyeonggi Province was analyzed using the vector error correction model, and is segmented by housing sale market and housing jeonse market. In addition, housing sale and housing jeonse of Gangam, Ganbuk and Gyeonggi province are defined as analysis variables, and time series data is the monthly material of June 2003 to November 2015. The results of the analysis, in the case of the housing sale market, showed that fluctuations in house prices in Gangnam area have a major influence on the fluctuations in house prices in the surrounding region. Similarly, in the case of the housing jeonse market, it was found that the jeonse price of Gangnam area has a significant impact on the jeonse price of housing in the surrounding area.