• Title/Summary/Keyword: Housing Distribution Market

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A Study on Mutual Relationship between Korean Income Distribution during 1980s-1990s and Huge-scale Housing Supply Policy (한국의 80~90년대 소득분배와 대규모 주택공급정책의 상호관계에 관한 연구)

  • Lim, Jae-Bin
    • Land and Housing Review
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    • v.11 no.3
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    • pp.11-19
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    • 2020
  • This study aims to examine the relationship between the improvement of the income distribution index from the late 1980s to the 1990s and large-scale housing supply projects such as the 2 million housing construction project. Looking at Korea's economic development in terms of income growth and distribution, GDP has continuously increased since the establishment of the government, especially in the late 1980s. The Gini Index, a representative income inequality index, rapidly deteriorated in the early 1970s, and gradually improved from the late 1980s. The 2 million housing construction project, announced in 1988, supplied a third of the existing nationwide housing stock of 6.5 million units in three years. The project cost was 65 trillion won, equivalent to 50% of Korea's GDP at the time. This study questioned whether the ratio of the number of employed workers in the construction industry was a variable directly affecting the Gini Index. To verify this, the causal relationship between the proportion of employed workers in the construction and manufacturing industries and the Gini Index from 1979 to 2008 was statistically analyzed. For this, the ARIMA model was established for each variable, and the correlation of their residuals was verified. The 2 million housing construction project had the effect of improving income inequality in terms of rising wages for production workers and creating jobs for the low-educated and low-income class. During the project period, the number of middle-income earners increased sharply, and the income gap between the high-income and low-income earners greatly decreased. The expansion of the construction volume can be used as a powerful and direct policy tool for improving income distribution. However, the effect may be limited. When the proportion of workers exceeds the threshold, the effect is weakened.

A Positive Analysis of Housing Price Model in Seoul: Applications of Structural Equation Modeling

  • Kim, Kyong-Hoon;Lee, Yoon-Sun;Ahn, Byung-Ju;Kim, Jae-Jun
    • Architectural research
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    • v.9 no.2
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    • pp.27-35
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    • 2007
  • Our nation has a problem with discrimination of income distribution and inefficient of resources distribution caused by real estate price rising from a sudden economy growth and industrialization. Specially, in recent years, there is a great disparity of apartment price between the north and south of the Han river. Because the housing price is decided by the immanent value of a house and neighborhood effects of the regional where the house is situated, the housing price is occurred difference. The purpose of study was to analyze the influence of various factors of housing price. Also, this study tried to predict real estate market and to establish previous effective real estate policy. In this study, we analyzed the differences of housing price determinants about apartment developments between the north and south of the Han river, and found the important factors that affect the housing price using Structural Equation Modeling(SEM). As a result of this study, the older the buildings are, the more the housing price and the housing price rising ratio have increased, in Gang Nam area. This reason is that these have large possibility to be reconstructed and many convenient facilities, in this area. In the case of Kang Buk area, the increase rate of housing price are so low that they couldn't take effect on the housing price and they were declined. So to speak, constructing the infrastructure which takes effect on the increase rate of housing price is very urgent.

The Prominence of Financial Considerations on Housing Investors' Purchase Decisions

  • DANANJOYO, Radyan;CAHAYA, Fitra Roman;RIYADH, Hosam Alden
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.869-875
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    • 2020
  • As a basic element for sustainable development, the residential housing industry is vital and fundamental for every country in the world. Therefore, this study examines the impacts of financial considerations on house purchase decisions by housing investors in Auckland, New Zealand. 110 completed questionnaires were statistically analyzed. For testing the proposed hypotheses, Structural Equation Modelling (SEM) was used. The results show that house prices, income, and credit accessibility significantly influence housing investors' purchase decisions in a positive direction. It appears that more expensive houses offer more promising returns such that housing investors having higher levels of income and access to loans are brave enough to invest in such houses. This study aims to present the key factors influencing house purchase decisions from the viewpoint of housing investors as fundamental groups of stakeholders in the property market, which is rarely examined in previous studies. The implication of this study is to provide guidelines for housing regulators in New Zealand to develop affordable housing prices through the availability of land banks. This study also offers practical contributions to housing investors, particularly by providing key guidelines to make effective investment decisions.

Analysis of Determinant Factors of Apartment Price Considering the Spatial Distribution and Housing Attributes (공간지리적 요인과 주거특성을 고려한 공동주택 가격결정 분석)

  • Moon, Tae-Heon;Jeong, Yoon-Young
    • Journal of the Korean Association of Geographic Information Studies
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    • v.11 no.1
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    • pp.68-79
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    • 2008
  • Because local cities are different from large cities, they need to reflect their own characteristics of housing market. Thus in order to obtain useful implications for the establishing sound housing market in Jinju City, this paper investigated the characteristics of spatial distribution and determinant factors that affect apartment price in Jinju City. GIS representation of the apartments showed that most of old and small apartments were built in 'land readjustment project' areas executed in 1970s. On the contrary, new and large scale apartment complexes were built quite recently and distributed in the western and southern parts of the city. Next, in order to examine the factors which affect apartment price, this paper subtracted firstly several variables from the related studies. However in order to avoid multi-colinearity, variables were summarized by means of factor analysis. Then, setting apartment price as a dependant variable, 12 hedonic price models were established with 33 independent variables. As results, building age, floor area, accessibility to university and hospital, accessibility to arterial road, and stair-type building were turned out to be significant. These results will be used in making the supply and allocation plan of urban facilities and housing. Finally as conclusions this paper emphasized the need of periodic analysis of local housing market and establishing detailed housing information systems.

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A Study on the Risk Management Strategy of the Large Scale Construction Company According to the Change of Real Estate Market (부동산시장 변화에 따른 대형건설사 리스크관리 방안에 관한 연구)

  • Lee, Yun-Hong;Ji, Kyu-Hyun
    • Land and Housing Review
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    • v.9 no.1
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    • pp.1-9
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    • 2018
  • As the government announced Real Estate Policies on August 02, most areas except for Seoul cities face increasing business risks. Moreover, the government control over financial sectors' loan leads to the highly possible contraction of new distribution markets. The market trend could bring about the reduction of new demand in PF (Private Financing) business that large construction companies mainly concentrate on, and even the business already obtained has a high risk of being distributed, which could result in substantially low profitability. The currently unstable financial structure of most construction companies is caused by the hike of the prime cost of foreign plants except for that of a few construction companies. If PF (Private Financing) business also faces a difficult situation in such a financial condition, even large construction companies come to have the high possibility of a deficiency in credit rating. Accordingly, the major business that large construction companies concentrate on needs the sufficient business review. It is desirable to make a bid for business guaranteeing stability rather than business solely in consideration of profitability, when participating in a competition for a new construction contract.

A Study on Determinants of Asset Price : Focused on USA (자산가격의 결정요인에 대한 실증분석 : 미국사례를 중심으로)

  • Park, Hyoung-Kyoo;Jeong, Dong-Bin
    • The Journal of Industrial Distribution & Business
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    • v.9 no.5
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    • pp.63-72
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    • 2018
  • Purpose - This work analyzes, in detail, the specification of vector error correction model (VECM) and thus examines the relationships and impact among seven economic variables for USA - balance on current account (BCA), index of stock (STOCK), gross domestic product (GDP), housing price indices (HOUSING), a measure of the money supply that includes total currency as well as large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets (M3), real rate of interest (IR_REAL) and household credits (LOAN). In particular, we search for the main explanatory variables that have an effect on stock and real estate market, respectively and investigate the causal and dynamic associations between them. Research design, data, and methodology - We perform the time series vector error correction model to infer the dynamic relationships among seven variables above. This work employs the conventional augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root techniques to test for stationarity among seven variables under consideration, and Johansen cointegration test to specify the order or the number of cointegration relationship. Granger causality test is exploited to inspect for causal relationship and, at the same time, impulse response function and variance decomposition analysis are checked for both short-run and long-run association among the seven variables by EViews 9.0. The underlying model was analyzed by using 108 realizations from Q1 1990 to Q4 2016 for USA. Results - The results show that all the seven variables for USA have one unit root and they are cointegrated with at most five and three cointegrating equation for USA. The vector error correction model expresses a long-run relationship among variables. Both IR_REAL and M3 may influence real estate market, and GDP does stock market in USA. On the other hand, GDP, IR_REAL, M3, STOCK and LOAN may be considered as causal factors to affect real estate market. Conclusions - The findings indicate that both stock market and real estate market can be modelled as vector error correction specification for USA. In addition, we can detect causal relationships among variables and compare dynamic differences between countries in terms of stock market and real estate market.

The Economic Effects of Tax Incentives for Housing Owners: An Overview and Policy Implications (주택소유자(住宅所有者)에 대한 조세감면(租稅減免)의 경제적(經濟的) 효과(效果) : 기존연구(旣存硏究)의 개관(槪觀) 및 정책시사점(政策示唆點))

  • Kim, Myong-sook
    • KDI Journal of Economic Policy
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    • v.12 no.2
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    • pp.135-149
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    • 1990
  • Housing owners in Korea have a variety of tax advantages such as income tax exemption for the imputed rent of owner-occupied housing, exemption from the capital gains tax and deduction of the estate tax for one-house households. These tax reliefs for housing owners not only conflict with the principle of horizontal and vertical equity, but also lead to resource misallocation by distorting the housing market, and thus bring about regressive distribution effects. Particularly in the case of Korea with its imperfect capital market, these measures exacerbate the inter-class inequality of housing ownership as well as inequalities in wealth, by causing the affluent to demand needlessly large housing, while the poor and young experience difficulties in purchasing residential properties. Therefore, the Korean tax system must be altered as follows in order to disadvantage owner-occupiers, especially those owners of luxury housing. These alterations will promote housing-ownership, tax burden equity, efficiency of resource allocation, as well as the desirable distribution of income. First, income tax deductions for the rent payments of tenants are recommended. Ideally, the way of recovering the fiscal equivalence between the owner-occupiers and tenants is to levy an income tax on the former's imputed rents, and if necessary to give them tax credits. This, however, would be very difficult from a practical viewpoint, because the general public may perceive the concept of "imputed rent" as cumbersome. Computing the imputed rent also entails administrative costs, rendering quite reasonable, the continued exemption of imputed rent from taxation with the simultaneous deduction in the income tax for tenants. This would further enhance the administrative efficiency of income tax collection by easing assessment of the landlord's income. Second, a capital gains tax should be levied on the one-house household, except with the postponement of payments in the case that the seller purchases higher priced property. Exemption of the capital gains tax for the one-house household favors those who have more expensive housing, providing an incentive to the rich to hold even larger residences, and to the constructors to build more luxurious housing to meet the demand. So it is not desirable to sustain the current one-house household exemption while merely supplementing it with fastidious measures. Rather, the rule must be abolished completely with the concurrent reform of the deduction system and lowering of the tax rate, measures which the author believes will help optimize the capital gains tax incidence. Finally, discontinuation of the housing exemption for the heir is suggested. Consequent increases in the tax burden of the middle class could be mitigated by a reduction in the rate. This applies to the following specific exemptions as well, namely, for farm lands, meadows, woods, business fields-to foster horizontal equity, while denying speculation on land that leads to a loss in allocative efficiency. Moreover, imperfections in the Korean capital market have disallowed the provision of long term credit for housing seekers. Remedying these problems is essential to the promotion of greater housing ownership by the low and middle income classes. It is also certain that a government subsidy be focused on the poorest of the poor who cannot afford even to think of owning a housing.

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Relationships between Real Estate Markets and Economic Growth in Vietnam

  • Nguyen, My-Linh Thi;Bui, Toan Ngoc;Nguyen, Thang Quyet
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.1
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    • pp.121-128
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    • 2019
  • This study analyses the relationship between the real estate market and economic growth in Vietnam, a country with a fledgling real estate market. Research data included economic growth rate and growth rate of the real estate market in Vietnam. The research used quarterly data for the period from 2005: Q1 to 2018: Q1. With the characteristics of Vietnam, there has been no real estate index up to now; therefore, the research used data on growth rates of the real estate market. In addition, the real estate market in Vietnam is still young, so the data series is very short, which is a limitation of this research. With qualitative and quantitative methods especially with the Vector Auto Regressive (VAR) model; the results of the study indicate new findings, unlike previous studies, including: (1) The real estate market positively impacts Vietnam's economic growth, most noticeably in the second quarter lag and the fourth quarter lag, and then its trend impacts inversely; (2) The real estate market and economic growth in Vietnam have fluctuated over time with many risks that are affected by the past shocks of these factors. From these findings, we proposed some managerial implications for managing the real estate market with economic growth in Vietnam sustainably.

An Empirical Testing of a House Pricing Model in the Indian Market

  • HODA, Najmul;JAFRI, Syed Ashraf;AHMAD, Naim;HUSSAIN, Syed Mannawar
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.8
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    • pp.33-40
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    • 2020
  • The main aim of the study is to test a house pricing model by combining hedonic and asset-based pricing models. An understanding of the relationship between house pricing and its return (the rental income) helps to establish houses as a significant asset class. The model tested the relationship between house pricing (dependent variable) and the house attributes (independent variables) derived from Freeman's framework of housing attributes. This study uses a large data-set of 1,899 sample of new, high-end houses purchased between 2016 and 2019 collected from the national capital region of India (Delhi-NCR). The algorithm was built in R-Script, and stepwise multiple linear regression was used to analyze the model. The analysis of the model proves that the three significant variables, namely, carpet area, pay-off, and annual maintenance charges explain the price function. Further, the model is statistically fit. The major contribution of the study is to understand the key factors and their influence on the house pricing. The model will be helpful in risk assessment in the housing investment and enhance the chances of investment. Policy-makers can use information about the underlying valuation drivers of the house prices to stabilize the market and also in framing the tax policies.

Factors Affecting Real Estate Prices During the COVID-19 Pandemic: An Empirical Study in Vietnam

  • HA, Nguyen Ho Phi
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.10
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    • pp.159-164
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    • 2021
  • The COVID-19 pandemic has widely spread and has become a global problem. The pandemic has had a negative impact on most countries and on the global economic growth. In the real estate and housing market, the impact of the pandemic has directly disrupted the supply of raw materials and human resources. In case of Vietnam, the real estate and housing markets are increasingly becoming important contributors to Vietnam's economy, with a combined contribution of approximately 6% to the GDP of the country. Also, the pandemic has negatively affected the real estate in Vietnam. Using a sample data of 220 home, apartment and real estate buyers in the period of April 2020 to Apr 2021 in Nam Tu Liem and Cau Giay districts, Hanoi, the research results demonstrate that the area of the house, the number of beds, and the location of the land show a positive influence on the real estate price. Meanwhile, the distance from the land to the center of the district has a negative effect on the price, which means that the further away a land is from the center, lower is its price.