The hypothesis of the monocentric city and only a few factors such as space and travel cost which are used to simplify the characteristic of the housing market are the demerits of the Access Space Trade-Off Model. To overcome these demerits, Seoul sho...
The hypothesis of the monocentric city and only a few factors such as space and travel cost which are used to simplify the characteristic of the housing market are the demerits of the Access Space Trade-Off Model. To overcome these demerits, Seoul should be regarded as multicentric city and the model should be presented in which the multi-factor characteristics of housing were considered. For this purpose, the multi-factor Chonse-rental(the lease of a house on a deposit basis) market was divided into the similar parts according to the structural, locational, and environmental characteristic bundling of the housing. Thereafter, the divided Chonse-rental market was tested by the Hedonic price method.
In Chapter 2, the Access Space Trade-Off Model is explained. The hypothesis of single downtown, roads radiating in all directions, and the unitary characteristic of housing market will be supplemented. Through this supplement, the necessity of new housing sub-market is clarified and the multi-factor housing market is presented as a substitute.
In Chapter 3, the Chonse households of the multi-factor housing market of the 18 autonomous districts in Seoul City were divided into the six housing market. The 10 variables of such as structural, locational, and environmental characteristics of the housing are used in this division.
The Market A is Gangnam-gu, Seocho-gu, Nowon-gu, Dobong-gu and their structural, locational, and environmental characteristics of the housing are superior compared to other market. The Market B is Gwanak-gu, Jungnang-gu, Seodaemun-gu, Seongdong-gu, Eunpyeong-gu, Dongdaemun-gu and it takes too much time to reach the environmental facilities such as the green zone and the park. The Market C is Mapo-gu, Yangcheon-gu, Guro-gu and their structural features are superior. The Market D is Yeongdeungpo-gu, Yongsan-gu and all of their structural, locational, and environmental characteristics of the housing are inferior. The market E is Gwanjin-gu, Jongno-gu and their quality of structural features is low. The market F, Gangdong-gu has a weak point of time-consuming commuting due to long distance from the downtown whereas other housing features are superior.
At the section 1 of Chapter 4, I assume the hedonic price function for each market which are divided by the multi-factors of the Chonse markets. Therefore, I ascertain that each market's characteristics are reflected in the price function.
The structural characteristic of each market shows the meaningful result. Also, the marginal price is higher in the market where the structural features are superior. The market A where all structural, locational, and environmental characteristics of the housing are superior show that the variables such as the structural feature, the commuting time, and the time to reach the recreation center affect the housing price. The market B where the environmental feature is inferior shows that the time to reach the park and the green zone has the positive impact to the housing price. The market C where the structural feature is superior shows that the marginal price for the structural feature is higher. The market D where all the structural, locational, and environmental characteristics of the housing are inferior shows that the marginal price of the locational and environmental characteristic variables are higher.
According to the result of Chonse price function, it is presumed that the meaningful variables and marginal price of each market are different. Therefore, the markets are divided into the several segments by the bundling of the housing characteristic and these characteristics have affected housing prices.
At the section 2 of Chapter 4, correlation analysis has been done to the housing characteristic price and the consumers' socio-economic characteristic. It shows that the consumers are taking the housing characteristic after they consider each market's characteristic price and their socio-economic features.
The differences of the structure, location, and environment of the housing of each market have been confirmed by dividing Chonse housing market with the multi-factor. According to the analyzed result, the markets are divided into the overall superior markets (market A and F) and overall inferior markets (market D and E) instead of differentiated markets by each characteristic.
There is a huge gap between the characteristics of superior markets and those of inferior markets. However, this gap of characteristic generally doesn't affect the housing price.
The gap between the locational and environmental characteristics (such as the green zone and the distance from sub-downtown) should be appraised by the particular characteristics of each market.
However, if we keep concentrating the artificial housing characteristics (such as convenient mass transportation and superior school group) on the superior markets, the gap between the superior and inferior housing market will become widening more and more. The policy consideration to bridge this gap is needed.
I try the systematic segmentation and the test of sub-housing market on this thesis. However, due to lack of appropriate data in applying hedonic price function, there is not much enough information for the test of segmentation of the sub market. Also, there is not much available data for the Chonse housing.
After I acquire available survey data in the near future, I will do in-depth research for the comparison of sub markets and will present distinct substitute model of housing service by using proper survey data. That'll be my next project.