A Study on Developing Regional Relative House Price Index

Recently, in Korea, the polarization of real estate prices by region has deepened, causing social and economic problems. In particular, the government's expansion of taxation on owners of multiple homes to stabilize housing prices led to the exacerbation of the real estate price polarization between the metropolitan areas and local regions. As a methodology for monitoring this phenomenon of real estate price polarization by region, this study is based on 3 house transaction types for 4 house types targeting 17 cities and provinces and affiliated administrative districts, tentatively named 'Regional Relative House Price Index’. The purpose is to calculate the 'RRHPI' for observing trends in relative real estate prices by region at the national level, suggesting brand-new directions for conducting research related to the regional polarization phenomenon.