The new towns in the capital region have influenced the real estate prices throughout the nation, due to solution of the concentrated population in existing downtowns and housing shortage, improvement of people''s welfare, homogeneous but unique local...
The new towns in the capital region have influenced the real estate prices throughout the nation, due to solution of the concentrated population in existing downtowns and housing shortage, improvement of people''s welfare, homogeneous but unique local autonomy, activation of regional development, their residents'' high financial capacity, comfortable housing and traffic environment uncomparable to existing towns. The land price index published by Ministry of Construction and Transportation is based on the administrative units such as autonomous megalopolises or local autonomous administrations. Accordingly, the real estate prices in the new towns in the capital region which affect the real estate markets greatly cannot but be estimated by such informal agencies operating a real estate database as 'Real Estate 114'. So, more objective index or data are required. At this moment when a decade has passed since a great many people began to move to new towns, this study is aimed at comparatively analyzing the land price changes in the new towns which have affected nation''s real estate markets greatly. To this end, Bundang, Ilsan and Pyongchon were sampled out of the 5 new cities in the capital region or Bundang, Ilsan, Pyongchon, Jungdong and Sanbon. For this study, the researcher used as basic data those standard land prices surveyed and appraised by property appraisers and processed statistically by Korea Land Corporation and finally published by Ministry of Construction and Transportation. Then, the researcher reviewed the land prices published every January 1st from 1996 - when the land prices were not published - to 2004 for 267 land parcels in Bundang, Ilsan and Pyongchon new cities. Then, land price indices were calculated by using Laspeyres land price indexing method, and thereupon, annual average land price change rates and land price change rates per zone were calculated to be compared among three new towns and between them and nation-wide ratesother Kyonggi-do areas6 megapolises. The results of comparatively analyzing the land price change rates in three new towns (Bundang, Ilsan and Pyongchon) can be summarized as follows; First, the land prices have risen 93.91% in Bundang, 103.4% in Ilsan and 52.5% in Pyongchon for 9 years from 1996 when the apartment houses were constructed to 2004 after the standard land prices were published. Namely, the land prices changed most in Ilsan, followed by Bundang and Pyongchon in their order. While the land price change rates have been almost similar between Bundang and Ilsan after the standard land prices were published, the land prices in Pyongchon new town have changed around 50%. Second, as a result of analyzing the land price change rates per zone in three new towns, it was found that the land prices of residential zone have risen 113.2% in Ilsan, 103.6% in Bundang and 56.1% in Pyongchon. In short, Ilsan new town has showed the highest land price rise even at the time of people''s movement because it has more detached houses than the other two towns. On the other hand, the land prices of commercial zone have been highest in Bundang (100%), followed by Ilsan (75.7%) and Pyongchon (48.8%). Namely, it has been confirmed through this study that the land prices have changed more in residental zones than commercial zones in three new towns. When nation''s economy was affected as shown at the time of the foreign exchange crisis, the land prices fell more in commercial zones than residential zones, and the recovery rates were lower in commercial zones. Third, as a result of comparing the average land price changes between three new towns and nation-wideother Kyonggi-do areas6 megalopolises including Seoul for the period from 1996 to 2003, it was found that the average land price rises were 3.55% nation-wide, 12.17% in other Kyonggi-do areas, 8.62% in Seoul, -12.24% in Busan, -10.68% in Daegu, 6.03% in Inchon, -6.25% in Kwangju and 1.21% in Daejon. Namely, the land prices have risen far higher in three new towns than other areas throughout the nation. Lastly, it is hoped that the results of this study will be useful to prediction of future land prices in new towns, analysis of various socio-economic data, analysis of the spreading effects of the real estate prices in new towns on nation''s real estate markets, estimation of local revenues, etc.