AN ANALYSIS OF THE INITIAL PRESALE RATE IN HOUSING PROJECTS USING A REGIME-SWITCHING MODEL

Author:

HYEON KIM MYEONG1,BANG DOO WON2,SHIN KWON HYUCK2ORCID

Affiliation:

1. Seoul National University of Science & Technology, Korea

2. Korea Housing & Urban Guarantee Corporation, Korea

Abstract

We analyzed to identify the determinants affecting the presale rate in the housing projects and verified whether there are differences in the determinants of that by regimes. We found that the effects of determinants, such as the ratio of the new apartments’ sales price to existing apartments’ prices, educational environment, the number of unsold houses, and the interest rate of a mortgage on the initial presale rate, could have been different depending on which regime the housing market belongs to. This suggests that the government in Korea and Asian countries should consider the differentiation in effects of the determinants depending on the regime when the government tries to make housing policies.

Funder

Seoul National University of Science and Technology

Publisher

World Scientific Pub Co Pte Ltd

Subject

Economics and Econometrics

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