The purpose of this study is o analyze the effect of sales price regulation of new apartment and to pursuit its improvement strategy.
Sales price regulation of new apartment has been carried out since 1977 as the form of price ceiling and was transformed to cost-based pricing regulation in 1989. The aim of the regulation is to alleviate the non-woner’s difficulty in purchasing the housing unit under the situation of rapidly increasing housing price during the economic development and urbanization period in Korea.
The price regulation of new apartment has given households the opportunity to buy their own house with low price even though it covered relatively small portion of all households. The premium gained from buying new apartment caused many people to moe to the new apartment market, which resulted in the expansion of the market size.
However, the price regulation has brought about many side effects. Price difference between the new housing market and the old one caused speculative demand which formed the bubble in the housing market. The conflict between the beneficiary and non-beneficiary, which arose from the large amount of premium in a short time period, came to make our society unstable.
On the other hadn, constructor’s activity is very much restricted by the regulation. They maximized their profit by choosing price and quantity of housing constuction. However, they now have to accept the regulated price and contol the quantity only. In order to maimize the profit under this cirumstances constructor tend to increase the density with given site and unfortunately ten to minimize its production cost through input the low-quality materials which can not be identified by the consumers. Those behaviors brought about the problems of high density in urban skirt, uniform appearnace of city outlook, and low-quality product of the house.
And the investment in the technology development was negelcted, which weakened the competitiveness of the construction industry.
Deregulation of the slaes price control has been insisted by the constructors and professionals to avoide the above problems. However, the price control system is now very complicated during the past 20 years of regulation. In order to solve the problems caused by the price regulation, government added so many regulations on it. A sudden deregulation may arise other impacts on the housing market.
This study suggests the impovement of cost-based pricing regulation currently in operation and the deregulation strategy which minimizes the side effects that could be arisen.
- 주택분양가규제의 시장효과 및 관련제도 연구(The effect of sales price regulation of new apartment and its improvement strategy)
- 윤주현; 신석하
주택분양가규제의 시장효과 및 관련제도 연구(The effect of sales price regulation of new apartment and its improvement strategy)
|Series Title; No||국토연 / 94-16|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|