To find effects of private educational institues on nearby apartments, this study analyzed the prices of apartments in Daechi-dong and Joongye-dong of Seoul and Ilsan. The study adopted the Hedonic price model using multiple and step wise regression with linear and log functions. We evenly chose many areas in selecting subject areas and applied reasonable factors for each area in choosing variables for analyses after thoroughly reviewing theoretical concepts and surveying the areas on site. we adopted many analytical methods and performed a number of analyses to get reasonable results.
Among three areas in Seoul, the distance from apartment buildings to private institute districts had effects on per Pyung prices for both of sold Pyung and occupied Pyung in Joongye-dong, on per Pyung price for occupied Pyung in Daechi-dong and that for sold Pyung in Mok-dong. In Ilsan, we found in relative analyses that the distance had the same per-Pyung price effects on either Pyung, but private institute districts had greater effects on apartment prices in Seoul than in Ilsan. Each area had its own characters and was affected differently by each variable, but some variables had much greater effects on the prices than others had.
Overall, apartment prices are affected by the properties, locations social reputation as like media's concerning on apartments. This study showed a result that implied apartment prices could be affected differently by a country or an area.
Hoping that many studies would be continuously done with many sample areas and realistic variable, we expect that this kind of studies including ours will help find real estate policies suitable for each area.