A Study on the Effect and Policy Effect of the Resale Regulation on the Sale: Focused on the Seoul Metropolitan Area

Abstract

(1) RESEARCH OBJECTIVES The purpose of this study is to examine the effect of the Moon Jae-in administration's regulation on the resale on apartment sales prices, and to understand the effect and policy effect of the reinforcement of the resale regulation on the sale price of apartments in Seoul and the metropolitan area since November 2016. (2) RESEARCH METHOD This study employed the fixed effect model, random effect model, and difference-in differences model to achieve the major objectives of this study. (3) RESEARCH FINDINGS The implications of this study are as follows. First, it was possible to grasp the impact of apartment sale prices in the short term as well as the policy effects in the long term due to the strengthening of regulations on the resale of the Moon Jae-in government after November 3, 2016. For this reason, it was judged that the strengthening of regulations on the resale after 2016 had short-term effects, but no long-term effects. Second, this study was possible because panel data that combined cross-sectional data and time series data was constructed, so that the restrictions on resale of presale rights could be identified regionally or temporally. 2. RESULTS As a result of this study, it was found that resale regulation had a negative (-) effect on apartment sales prices in the short term, but in the long term, it is understood that it increases apartment sales prices, so there is no policy effect.