An Empirical Evaluation of Road Location on Housing Transaction Prices
도로입지 요인이 아파트 가격에 미치는 영향 분석

Pil Sun Cho, In Sik Mi
2016 Journal of Real Estate Analysis  
The housing location is considered as an important factor determining the price or rent of a housing. However, little empirical studies have been conducted on how to measure the impact of various location factors. This study investigated the road location, one of the most important location factors, and empirically analyzed how the road location affected the value of housing. In our study, road location indicated whether the apartment was located on "Boulevard (Daero)", "Road (Ro)" or "Street
more » ... (Ro)" or "Street (Gil)" defined by the road name address. Study samples consisted of the entire period transaction (resale and rental) in Seoul metropolitan area from 2006 to 2016. As an econometric methodology, we adopt a panel regression approach with random effects. We found that apartment sale prices located on "Boulevard" were 17.8% higher than the apartment on "Street" while other conditions were identical. Moreover, the housing resale price on "Road" was 9.6% higher than those on "Street" apartment. Rental prices measured by Jeonse price showed a similar pattern to the relationship between resale prices and road location. Our estimation models, assuming the temporal variation of road condition impacts, revealed that the price difference, caused by the road location, gradually reduced.
doi:10.30902/jrea.2016.2.2.61 fatcat:i2iescwn7vgflpzshsjrxajsfq