• Title/Summary/Keyword: Decision to Rent

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An Analysis of the Factors Influencing Sales Price of Multi-Household Houses in Chang-won City (창원시 다가구주택의 매매가격에 영향을 미치는 요인 분석)

  • Oh, Sae-Joon
    • Journal of the Korea Convergence Society
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    • v.10 no.3
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    • pp.193-201
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    • 2019
  • The public's interest regarding multi-household houses, one of the small-scale housings used as profit earning property, has been increasing. Previous studies regarding price, such as the rent and sales price of multi-household houses', however, were difficult to find. Thus, this study set forth to find out what characteristics influence the sales price of multi-household houses so as to provide further suggestions to investors' decision makings and developers' strategy establishments. The data was retrieved from multi-household sales transacted in Changwon City. Through empirical analysis, this paper found that prices were high in Euichang-gu and Seongsan-gu, and meaningful variables in terms of locations were distance from major trade areas(-), distance from main streets(-), and Corner site(+). Meaningful variables related to household characteristics were total floor area(+), Studio type(+), Southern exposure(+), Building age(-), and Full-furnished(+).

Investigation into the Effectiveness on Customized Remodeling - Focusing on apartment houses completed during remodeling - (맞춤형 리모델링에 대한 실효성 검증 연구 - 리모델링을 추진중, 완공한 공동주택을 중심으로 -)

  • Yoon, Hyang-Seung;Kim, Gi-Soo
    • Journal of the Architectural Institute of Korea Planning & Design
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    • v.34 no.7
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    • pp.3-12
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    • 2018
  • The present remodeling makes almost no difference from rebuilding as all the building materials are removed remaining frame structure only. And, in case of vertical extension of building, higher construction cost and safety problem occur. The Ministry of Land, Transport and Maritime Affairs, therefore, recommends customized remodeling that can be made in light of the resident' needs such as parking lot, elevator, bathroom, and room for the alternative of remodeling of vertical extension of building. The purpose of this study is to present real data that can be referred to the constructor's decision making before starting the remodeling, by investigating and analyzing the weight and importance between evaluation factors for customized remodeling at the completed time of remodeling. Accordingly, the factors were divided into environmental factor, social factor, and economical factor, and the survey was performed for the residents living in remodeling houses. In addition, for the professionals, AHP (Analytic Hierarchy Process) has been carried out for the priority in the customized remodeling. For environmental factor, the level of importance made difference from that before remodeling, except parking level. For social factor, every item, including psychological satisfaction and community satisfaction, made difference. For economical factor, the recognition level of importance in rent made difference, except sale price of the factor for price satisfaction. In case of the factor for cost satisfaction, it was checked that construction cost and administration cost both could be considered important. As a result of AHP, the most importantly emphasized item was construction cost, and sale price, administration cost, residence structure, and parking lot were followed by priority in order. This study could contribute to reliably settle down customized remodeling by giving reasonable and substantial help from the analysis of the differences in the customized remodeling items before/after the remodeling.

A Study on the Financial Strength of Households on House Investment Demand (가계 재무건전성이 주택투자수요에 미치는 영향에 관한 연구)

  • Rho, Sang-Youn;Yoon, Bo-Hyun;Choi, Young-Min
    • Journal of Distribution Science
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    • v.12 no.4
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    • pp.31-39
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    • 2014
  • Purpose - This study investigates the following two issues. First, we attempt to find the important determinants of housing investment and to identify their significance rank using survey panel data. Recently, the expansion of global uncertainty in the real estate market has directly and indirectly influenced the Korean housing market; households demonstrate a sensitive reaction to changes in that market. Therefore, this study aims to draw conclusions from understanding how the impact of financial strength of the household is related to house investment. Second, we attempt to verify the effectiveness of diverse indices of financial strength such as DTI, LTV, and PIR as measures to monitor the housing market. In the continuous housing market recession after the global crisis, the government places top priority on residence stability. However, the government still imposes forceful restraints on indices of financial strength. We believe this study verifies the utility of these regulations when used in the housing market. Research design, data, and methodology - The data source for this study is the "National Survey of Tax and Benefit" from 2007 (1st) to 2011 (5th) by the Korea Institute of Public Finance. Based on this survey data, we use panel data of 3,838 households that have been surveyed continuously for 5 years. We sort the base variables according to relevance of house investment criteria using the decision tree model (DTM), which is the standard decision-making model for data-mining techniques. The DTM method is known as a powerful methodology to identify contributory variables for predictive power. In addition, we analyze how important explanatory variables and the financial strength index of households affect housing investment with the binary logistic multi-regressive model. Based on the analyses, we conclude that the financial strength index has a significant role in house investment demand. Results - The results of this research are as follows: 1) The determinants of housing investment are age, consumption expenditures, income, total assets, rent deposit, housing price, habits satisfaction, housing scale, number of household members, and debt related to housing. 2) The impact power of these determinants has changed more or less annually due to economic situations and housing market conditions. The level of consumption expenditure and income are the main determinants before 2009; however, the determinants of housing investment changed to indices of the financial strength of households, i.e., DTI, LTV, and PIR, after 2009. 3) Most of all, since 2009, housing loans has been a more important variable than the level of consumption in making housing market decisions. Conclusions - The results of this research show that sound financing of households has a stronger effect on housing investment than reduced consumption expenditures. At the same time, the key indices that must be monitored by the government under economic emergency conditions differ from those requiring monitoring under normal market conditions; therefore, political indices to encourage and promote the housing market must be divided based on market conditions.

Housing Market Participants' Decision Process and The Dynamics of Ripple Effect on Korean Housing Market - Focusing on The Cause of Housing Market Stagnation and Housing Policies After 2008 Global Financial Crisis - (국내 주택시장 참여자의 거래의사 결정과정 및 시장 파급효과의 동태적 분석 - 금융위기 이후의 주택시장 침체원인 및 주택정책을 중심으로 -)

  • Hyun, Hosang;Lee, Hyun-Soo;Park, Moonseo;Hwang, Sungjoo
    • Korean Journal of Construction Engineering and Management
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    • v.15 no.5
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    • pp.147-159
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    • 2014
  • After 2008 global financial crisis, Korean housing market has experienced stagnation. So it caused housing market problems like housing price reduction, rising rent cost and so on. For housing market normalization government announced policies but Korean housing market didn't recover from stagnation. So, to understand why Korean housing market couldn't overcome the recession and why the policies didn't be effective, this research analyzed housing market participants (home owner, housing demand) based on the law of supply and demand and the psychological effect on their transaction intention based on behavioral economics(behavioral finance). Based on the analysis this research tested the effectiveness of announced policies using System Dynamics. The result showed that the amount of transaction and mortgage loan was influenced by the length of time to draft policies.

A Study of the Price Determinants for Public Residential Land Investment - From the Perspective of Land and Market Factors - (택지지구 공동주택용지의 투자가격 결정요인에 관한 연구 - 토지특성 및 시장요인 관점에서 -)

  • Choi, Kiheon;Lee, Sangyoub
    • Korean Journal of Construction Engineering and Management
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    • v.17 no.3
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    • pp.108-115
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    • 2016
  • The price determinant for land investment depends on the internal information process and subjective decision making by management in general. Accordingly, the systematic frame to determine the feasibility of investment price to the public residential land for multi-housing development by private sector has not been proposed. The purpose of this study is to explore the frame to determine the investment price for public residential land from the perspectives of land attribute and apartment market factor. Multiple regression has been implemented to confirm the eligibility of proposed model. Research findings indicate that the land area, floor area ratio, coverage ratio, location have been identified as the total land cost determinant, and for the determinants for floor area land cost, the ratio of apartment, sale price, rent price, etc, have been identified. This research intends to provide the basis for land providers to predict the land value as a raw material in market and present the indicators for land buyers to review the price adequacy for the investment.

Study on Location Decisions for Cloud Transportation System Rental Station (이동수요 대응형 클라우드 교통시스템 공유차량 대여소 입지선정)

  • Shin, Min-Seong;Bae, Sang-Hoon
    • Journal of Korean Society of Transportation
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    • v.30 no.2
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    • pp.29-42
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    • 2012
  • Recently, traffic congestion has become serious due to increase of private car usages. Carsharing or other innovative public transportation systems were developed to alleviate traffic congestion and carbon emissions. These measures can make the traffic environment more comfortable, and efficient. Cloud Transportation System (CTS) is a recent carsharing model. User can rent an electronic vehicles with various traffic information through the CTS. In this study, a concept, vision and scenarios of CTS are introduced. And, authors analyzed the location of CTS rental stations and estimated CTS demands. Firstly, we analyze the number of the population, employees, students and traffic volume in study areas. Secondly, the frequency and utilization time are examined. Demand for CTS in each traffic zone was estimated. Lastly, the CTS rental station location is determined based on the analyzed data of the study areas. Evaluation standard of the determined location includes accessibility and density of population. And, the number of vehicles and that of parking zone at the rental station are estimated. The result suggests that Haewoondae Square parking lot would be assigned 11 vehicles and 14.23 parking spaces and that Dongbac parking lot be assigned 7.9 vehicles and 10.29 parking spaces. Further study requires additional real-time data for CTS to increase accuracy of the demand estimation. And network design would be developed for redistribution of vehicles.

The Effect of Common Features on Consumer Preference for a No-Choice Option: The Moderating Role of Regulatory Focus (재몰유선택적정황하공동특성대우고객희호적영향(在没有选择的情况下共同特性对于顾客喜好的影响): 조절초점적조절작용(调节焦点的调节作用))

  • Park, Jong-Chul;Kim, Kyung-Jin
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.1
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    • pp.89-97
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    • 2010
  • This study researches the effects of common features on a no-choice option with respect to regulatory focus theory. The primary interest is in three factors and their interrelationship: common features, no-choice option, and regulatory focus. Prior studies have compiled vast body of research in these areas. First, the "common features effect" has been observed bymany noted marketing researchers. Tversky (1972) proposed the seminal theory, the EBA model: elimination by aspect. According to this theory, consumers are prone to focus only on unique features during comparison processing, thereby dismissing any common features as redundant information. Recently, however, more provocative ideas have attacked the EBA model by asserting that common features really do affect consumer judgment. Chernev (1997) first reported that adding common features mitigates the choice gap because of the increasing perception of similarity among alternatives. Later, however, Chernev (2001) published a critically developed study against his prior perspective with the proposition that common features may be a cognitive load to consumers, and thus consumers are possible that they are prone to prefer the heuristic processing to the systematic processing. This tends to bring one question to the forefront: Do "common features" affect consumer choice? If so, what are the concrete effects? This study tries to answer the question with respect to the "no-choice" option and regulatory focus. Second, some researchers hold that the no-choice option is another best alternative of consumers, who are likely to avoid having to choose in the context of knotty trade-off settings or mental conflicts. Hope for the future also may increase the no-choice option in the context of optimism or the expectancy of a more satisfactory alternative appearing later. Other issues reported in this domain are time pressure, consumer confidence, and alternative numbers (Dhar and Nowlis 1999; Lin and Wu 2005; Zakay and Tsal 1993). This study casts the no-choice option in yet another perspective: the interactive effects between common features and regulatory focus. Third, "regulatory focus theory" is a very popular theme in recent marketing research. It suggests that consumers have two focal goals facing each other: promotion vs. prevention. A promotion focus deals with the concepts of hope, inspiration, achievement, or gain, whereas prevention focus involves duty, responsibility, safety, or loss-aversion. Thus, while consumers with a promotion focus tend to take risks for gain, the same does not hold true for a prevention focus. Regulatory focus theory predicts consumers' emotions, creativity, attitudes, memory, performance, and judgment, as documented in a vast field of marketing and psychology articles. The perspective of the current study in exploring consumer choice and common features is a somewhat creative viewpoint in the area of regulatory focus. These reviews inspire this study of the interaction possibility between regulatory focus and common features with a no-choice option. Specifically, adding common features rather than omitting them may increase the no-choice option ratio in the choice setting only to prevention-focused consumers, but vice versa to promotion-focused consumers. The reasoning is that when prevention-focused consumers come in contact with common features, they may perceive higher similarity among the alternatives. This conflict among similar options would increase the no-choice ratio. Promotion-focused consumers, however, are possible that they perceive common features as a cue of confirmation bias. And thus their confirmation processing would make their prior preference more robust, then the no-choice ratio may shrink. This logic is verified in two experiments. The first is a $2{\times}2$ between-subject design (whether common features or not X regulatory focus) using a digital cameras as the relevant stimulus-a product very familiar to young subjects. Specifically, the regulatory focus variable is median split through a measure of eleven items. Common features included zoom, weight, memory, and battery, whereas the other two attributes (pixel and price) were unique features. Results supported our hypothesis that adding common features enhanced the no-choice ratio only to prevention-focus consumers, not to those with a promotion focus. These results confirm our hypothesis - the interactive effects between a regulatory focus and the common features. Prior research had suggested that including common features had a effect on consumer choice, but this study shows that common features affect choice by consumer segmentation. The second experiment was used to replicate the results of the first experiment. This experimental study is equal to the prior except only two - priming manipulation and another stimulus. For the promotion focus condition, subjects had to write an essay using words such as profit, inspiration, pleasure, achievement, development, hedonic, change, pursuit, etc. For prevention, however, they had to use the words persistence, safety, protection, aversion, loss, responsibility, stability etc. The room for rent had common features (sunshine, facility, ventilation) and unique features (distance time and building state). These attributes implied various levels and valence for replication of the prior experiment. Our hypothesis was supported repeatedly in the results, and the interaction effects were significant between regulatory focus and common features. Thus, these studies showed the dual effects of common features on consumer choice for a no-choice option. Adding common features may enhance or mitigate no-choice, contradictory as it may sound. Under a prevention focus, adding common features is likely to enhance the no-choice ratio because of increasing mental conflict; under the promotion focus, it is prone to shrink the ratio perhaps because of a "confirmation bias." The research has practical and theoretical implications for marketers, who may need to consider common features carefully in a practical display context according to consumer segmentation (i.e., promotion vs. prevention focus.) Theoretically, the results suggest some meaningful moderator variable between common features and no-choice in that the effect on no-choice option is partly dependent on a regulatory focus. This variable corresponds not only to a chronic perspective but also a situational perspective in our hypothesis domain. Finally, in light of some shortcomings in the research, such as overlooked attribute importance, low ratio of no-choice, or the external validity issue, we hope it influences future studies to explore the little-known world of the "no-choice option."