International conference on construction engineering and project management (국제학술발표논문집)
- 2013.01a
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- Pages.151-157
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- 2013
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- 2508-9048(eISSN)
System Dynamics Modeling of Korean Lease Contract Chonsei
- Myung-Gi Moon (Seoul National University) ;
- Moonseo Park (Seoul National University) ;
- Hyun-Soo Lee (Seoul National University) ;
- Sungjoo Hwang (Seoul National University)
- Published : 2013.01.09
Abstract
Since the sub-prime mortgage crisis from the US in 2008, the Korean housing market has plummeted. However, the deposit prices of the Korean local lease contract, Chonsei, had been increasing. This increase of Chonsei prices can be a threat to low-income people, most of whom prefer to live in houses with a Chonsei contract. 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 conclusion, the Chonsei price has its own homeostasis characteristics and different price behavior with housing price in the short and long term period. We found that unless government does not have a structural causation mind in implementing policies in the real estate market, the government may not attain their intended effectiveness on both markets.