Price Effect Analysis by Improving the Qualitative Characteristics of Apartment Buildings by Period in Gangnam-gu

Abstract

In the domestic apartment market, the quality enhancement and differentiated strategies of construction companies have been implemented since the 2000s. In many ways, the quality characteristics of apartment buildings that have been improved continuously provided a variety of choices in the criteria for housing buyers to purchase. This study empirically analyzed the effect of improving the quality characteristics of apartments by period among the determinants of housing prices on apartments in Gangnam-gu, Seoul through the Hedonic price model. The analysis showed that all the variables of qualitative characteristics, which are the core variables of this study, had a positive effect on apartment prices. It was confirmed that some of the variables corresponding to the qualitative characteristic factors showed higher estimation coefficient values than other variables, which had a greater impact on apartment price formation. In addition, it can be seen that a significant portion of the price effect due to aging, which has been measured as a quadratic function in many previous studies, is the result of overlapping effects due to the improvement of the qualitative characteristics of apartments.