• Korea Real Estate Review
• /
• v.28 no.2
• /
• pp.21-34
• /
• 2018

The purpose of this study is to investigate the effect of macro-finance variables on the correlation between the housing and stock markets because understanding the nature of time-varying correlations between different assets has important implications on portfolio allocation and risk management. Thus, we adopted the AG-DCC GARCH model to obtain time-varying, conditional correlations. Our sample ranged from January 2004 to November 2017. Our empirical result showed that the coefficients on asymmetric correlation were significantly positive, implying that correlations between the housing and stock markets were significantly higher when changes in the housing price and stock returns were negative. This finding suggested that the housing market has less hedging potential during a stock market downturn, when such a hedging strategy might be necessary. Based on the regression analysis, we found that the term spread had a significantly negative effect on correlations, while the credit spread had a significantly positive effect. This result could be interpreted by the risk premium effect.

• The Journal of the Korea Contents Association
• /
• v.20 no.3
• /
• pp.245-253
• /
• 2020

If the conversion rate of jeonse price to monthly rent is the market interest rate or the landlord's expected return, then the conversion rate of jeonse price to monthly rent in the country should be the same. However, the conversion rate of jeonse price to monthly rent has always been higher than the market interest rate. This study identifies the supply cost components of rental housing as a risk premium in the presence of current housing prices, market interest rates, depreciation costs, holding taxes, and leases, and identifies the relationship between the current housing prices and each factor. Housing rent is expressed as the current price. This overcomes the shortcomings that implicitly assume fluctuations in housing prices or do not include current housing prices in the conversion rate of jeonse price to monthly rent. This study found that the conversion rate of jeonse price to monthly rent is the required rate of return or required rate of renter, not market interest rate, by expressing the supply cost of rental housing as a combination of components. This not only explained the fact that the conversion rate of jeonse price to monthly rent was always higher than the market interest rate, but also explained the regional differences. It also explained why the conversion rate of jeonse price to monthly rent varies by type of housing.

• Journal of the Korean housing association
• /
• v.21 no.5
• /
• pp.83-92
• /
• 2010

The advent of an aging society has raised the necessity for housing development to meet the growing demands of baby boomers expected to act as the main consumers in the future housing market. This study aims to identify the characteristics of apartment houses favored by baby boomers in their post-retirement plans. Based on a literature review and survey, the study is targeted at a certain baby boom generation residing in mid- sized and large-sized apartments with a floor space of more than 30 pyeong in Gangnam, Seoul. The study reveals that baby boomers favor an active post-retirement life where they can enjoy proper leisure without considerable change in daily routines, and for that reason they choose an apartment house well equipped with neighboring, convenient facilities for their post-retirement. Their housing size shows a downward tendency in response to changes in economic conditions and number of family members living together. Health-related factors such as a comfortable natural environment and greenery also play a key role in their residence selection. Their regional preference is divided into the downtown and suburbs, and thus it will be necessary to satisfy the needs of these two consumer groups in the future housing market. This study lays the foundation for offering basic materials for the development and marketing of apartment houses.

• Korean System Dynamics Review
• /
• v.8 no.1
• /
• pp.187-209
• /
• 2007

This paper deals with the policy failure in housing markets. In order to understand basic mechanism leading to policy failure, systems thinking and system dynamics modeling is applied to housing markets and housing policy. This paper will show different set of causal maps on housing policy, and compare causal reasons of housing policy and its critics.

• Proceeding of Spring/Autumn Annual Conference of KHA
• /
• 2002.11a
• /
• pp.255-261
• /
• 2002

The purpose of this study was to identify the characteristics of housing product through housebuilders' strategies. As a methodology for this study, literature survey and questionnaire survey were used. Questionnaires were delivered on mail to 232 housing-builders and return rate was 34.1％. In summary, housing product was characterized long gestation period, periodically building cycle, future uncertainty of market volatility, maximization of land development gain, utilization of public fund for continuous building activity, moral hazard by accidental bankruptcy. Therefore private housebuilding could be defined speculative industry.

• The Journal of the Korea Contents Association
• /
• v.21 no.2
• /
• pp.78-84
• /
• 2021

Issues have arisen over the monopoly of housing sales guarantees by the Housing and Urban Guarantee Corporation. If the Ministry of Land, Infrastructure and Transport appoints an additional guarantee institution, there is concern that the property protection between the two parties is insufficient due to excessive competition and the weakening of urban regeneration resources. It argues that housing supply policies for stabilization of the housing market can be smoothly implemented through monopoly projects. This is judged to be an abuse of market dominant position under the Fair Trade Act, and excessive restrictions on pre-sale guarantee requirements may cause delays in business and infringement of property rights of members. First, the establishment of a designation system for market dominant operators of the Fair Trade Commission enables new entry of private guarantee institutions. Second, it is necessary to improve regulations under Article 63 of the Fair Trade Act (consultation on the establishment of laws restricting competition, etc.). Third, through the establishment of the 「Rules on Housing Supply」 under Article 15 (2), the Minister of Land, Infrastructure and Transport can additionally designate a guarantee institution, thereby guaranteeing the right to select a pre-sale guarantee for the business entity. In addition, it is expected that at least one of a number of guarantee insurance companies can be designated to improve the efficiency of the distribution of social benefits, thereby lowering the volatility of housing prices. Listen and suggest.

• Korean Journal of Construction Engineering and Management
• /
• v.11 no.1
• /
• pp.101-112
• /
• 2010

The Korean real estate market currently is experiencing a slowdown due to the global economic crisis which has resulted from subprime mortgage lending practices. In response, the Korean government has enforced various policies, based on intend to deregulate real estate speculation, such as increasing the Loan to value ratio (LTV) in order to stimulate housing supply, demand and accompanying housing transactions. However, these policies have appeared to result in deep confusion in the Korean housing market. Furthermore, analyses for housing market forecasting particularly those which examine the impact of the international financial crisis on the Korean real estate market have been partial and fragmentary. Therefore, a comprehensive and systematical approach is required to analyze the real estate financial market and the causal nexus between market determining factors. Thus, with an integrated perspective and applying a system dynamics methodology, this paper proposes Korean Real Estate and Mortgage Market dynamics models based on the fundamental principles of housing markets, which are determined by supply and demand. As well, the potential effects of the Korean government's deregulation policies are considered by focusing on the main factor of these policies: the mortgage loan.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2013.05a
• /
• pp.265-267
• /
• 2013

Recently, It is being reduction to market of the domestic construction industry for the instability of the domestic market structure. So it is necessary to plan response measures for to ensure the competitiveness of the construction market of overseas. The purpose of the study is suggest of improvement of the project delivery system for the efficiency of the construction of the unit modular housing of considering the reducing cost and technological competitiveness of the domestic construction industry.

• Land and Housing Review
• /
• v.14 no.4
• /
• pp.17-37
• /
• 2023

The rental housing market in South Korea, specifically monthly rent with deposit, has been expanding over the last three decades (8.2% in 1990 to 21.0% in 2020), partly replacing the traditional Jeonse market. The distribution of rent has changed due to public rental subsidies and the emergence of luxury rental housing, while the distribution of rental household income has been polarized because of the emergence of rich renters. This study attempts to measure the structural changes in the rental market by developing a new indicator of income-rent mismatch. Using the seven series of the Korea Housing Survey, this study analyzed the changes in rent (reflecting the conversion rate) and income levels of rental households in 2006 (base year) and 10-15 years later (the analysis year) at the national level and at the spatial unit of 16 metropolitan cities and provinces (excluding Sejong), respectively, by dividing them into quartile data. The result reveals that rental housing was undersupplied in middle- and high-income rental housing due to the decline in the highest quartile (25%→18%) and the third quartile groups (25%→20%), while the supply of public rental housing expanded for the second quartile (25%→28%) and the lowest quartile (25%→35) groups. On the demand side, the highest income quartile shrank (25%→21%), while the lowest income quartile grew (25%→31%). Comparing the 16 metropolitan cities and provinces, there were significant regional differences in the direction and intensity of changes in rent and renter household income. In particular, the rental market in Seoul was characterized by supply polarization, which led to an imbalance in the income distribution of rental households. The structural changes in the apartment rental market were different from those in the non-apartment rental market. The findings of this study can be used as a basis for future regional rental housing markets. The findings can support securing affordable rental housing stock for each income quartile group on monthly rent and developing housing stability measures for a balance between income and rent distribution in each region.

• Land and Housing Review
• /
• v.4 no.4
• /
• pp.303-316
• /
• 2013

This paper examines the achievements and limitations of housing assistance programs for low-income households. Korean public rental housing has been rapidly developing since 2000, and thereby achieved an increase in public rental housing stock, housing quality improvements, and the reduction of rent over-burden for low-income tenants. Despite some conflicting evidence, it appears that the provision of newly-built public rental housing has helped stabilize the prices of neighboring private rental housing units. But, as we are entering an era of one million long-term public rental housing units, we need to shift our focus from quantity-oriented provision to housing maintenance for tenants, and from cost-based rental housing to affordable rental housing and better access to rental housing for low-income tenants who are not beneficiaries of government assistance. Most of all, it is very important for local governments and the private sector to actively participate in the provision of public rental housing in order to ensure a stable rental housing market.