The purpose of this paper is to find the determinative factors of new apartment subscription rate in Seoul Metropolitan Area. The new apartment market in Seoul is chosen for this study because Seoul where the housing diffusion rate is still relatively...
The purpose of this paper is to find the determinative factors of new apartment subscription rate in Seoul Metropolitan Area. The new apartment market in Seoul is chosen for this study because Seoul where the housing diffusion rate is still relatively low compared to other cities in Korea still have active demand and takes large part in apartment supply. This study uses cross-sectional data with 603 observations from June, 1999 to October, 2001. Both the new apartment selling rate and the subscription rate to buy high-rise apartment which will be built within 2-3 years are used as dependant variables showing preference in housing purchase. Characteristics which new apartments have are divided by three sides, that is residential site, residential environment, and investment value related elements such as the brand value of construction company, selling price index and profit ratio. The Multiple regression method is used in order to make an appropriate model that can determine and affect new apartment subscription rate in each housing sub-market. Therefore we divided Seoul area into three housing submarkets. According to the analysis, proximity like distance to park, high ratio of green area to land within the complex, and low selling price index result in high competing rate subscribing to buy new high-rise apartment.