Journal of the Architectural Institute of Korea (대한건축학회논문집)

Architectural Institute of Korea (대한건축학회)
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Deriving Analysis Criteria of Earnings Rate for Private Participation and Public Housing Construction Types

민간참여 공공주택건설사업의 수익률 분석기준 도출

  • Lee, Chijoo (Construction Economy & Industry Research Division, Korea Research Institute for Human Settlements)
  • 이치주 (국토연구원 건설경제산업연구본부)
  • Received : 2022.04.01
  • Accepted : 2022.05.31
  • Published : 2022.06.30
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Abstract

Public institutions invest in land costs while construction companies invest in construction costs; the profit gained from sales is then distributed among them based on an investment ratio for private participation regarding public housing and construction types. However, when profit distribution takes place the factors that impact the earnings rate are not considered. This study derives analysis criteria for the earnings rate of construction and land costs, financial loss from unsold housing, and the profit distribution difference between private participation type and public housing type construction. Upon analysis of earnings rate changes without criteria being considered, the earnings rate did not reflect the actual cost of a project; it was observed that fair profit distribution was difficult. Additionally, when the construction costs for basic types were applied in cities with high land costs and national concerns, the risk of unsold housing decreased while the earnings rate increased. Thus, a contract type project is a potential method to increase the earnings rate for public institutions in a city. The analysis criteria of the earnings rate proposed in this study can be used to further establish profit distribution criteria between public institutions and construction companies based on the city and project type.

Keywords

References

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