Most of the studies on housing, including existing apartments, have been actively conducted on macroeconomic variables represented by interest rates or changes in apartment prices according to government policies. This study targeted large-scale apartment complexes in Seoul, which lead the domestic apartment market, and in particular, each government showed great interest in the Gangnam area and implemented tweezers regulations to analyze the area.
Since apartment prices in the Gangnam area affect apartment prices in the non-Gangnam area in the short term and later in the metropolitan area, and in the long run, this study can be a good data for policymakers, investors, and real users of apartments to make decisions.
Policy implications based on the analysis results of this study are as follows.
First, as shown in the analysis results of the Seoul Metropolitan Government's overall model, the Seoul Metropolitan Government's apartment price decision is affected by the economic growth rate and the total amount of currency classified as economic characteristics variables. This means that changes in apartment prices in Seoul, the center of domestic administration, education, and cultural economy, are affected by macroeconomic variables, making it difficult for Seoul's policies for apartment prices to have policy effects in a short period of time. This is because in addition to the economic growth rate and the total amount of money, the central government's economic policy direction for interest rates and the consumer price index is affected.
Second, it is an implication based on the analysis results of each of the Gangnam and non-Gangnam areas. In the case of the Gangnam area, significant influencing variables were the total amount of money, the consumer price index, and the interest rate, suggesting that apartments in the Gangnam area are recognized as investment goods by market participants. Depending on the economic situation, extra funds will move to find a place to invest, and apartment complexes in the Gangnam area are functioning as major investment destinations. It is judged that policymakers' continuous monitoring and regulation of apartments in the Gangnam area, which has had a great impact on the nationwide apartment market until recently, is essential. Looking at the analysis results of the non-Gangnam area, unlike the Gangnam area, it was analyzed that it was more affected by the construction year, average pyeong, floor area ratio, and building and closing rate than the economic characteristic variables. Compared to the Gangnam area, large-scale apartment complexes in the non-Gangnam area had little connection with interest rates, suggesting that the preference for the characteristics of individual complexes for residence affects the sale price and the price is changing. In conclusion, the preference for apartments in the non-Gangnam area is greatly influenced by the characteristic variables of individual complexes, so it is judged that it can have an influence through reconstruction-related policies when regulating these areas.