Abstract

While commercial/retail gentrification in residential area has been criticized for its socioeconomic effects of rent hikes and ensuing displacement of tenants, this paper attempts to provide a more comprehensive picture of the effects, including negative and positive external effects of land use changes on physical environment from the planning point of view. The questionnaire survey was conducted to assess various effects of commercial gentrification for the residents in a downtown residential area in Seoul called Seochon (West village), and four factors are identified in factor analysis: amenity, convenience, economic, and social factors. Main findings derived from regression of four factor scores on the overall assessment score are as follows. First, changes in physical environment (amenity and convenience factors) play a primary role in assessing gentrification effects. Second, positive externality of land use changes (convenience factor) is more influential than negative externality (amenity factor), leading to an increase in house rents. Third, the rent hikes (economic factor) in turn have double-sided effects, positive or negative, depending on housing tenure i.e. owners vs. tenants.

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