Abstract
The purpose of this study is to identify the influencing factors of the enterprise type rental housing REITs and draw policy implication to activate private rental housing. Two REITs that can become listed persistent REITs has been selected among the enterprise type rental housing REITs that is set as of AUG 2020. Sensitivity analysis on profitability using Monte-Carlo Simulation was performed and the result is organized as Equity IRR and average dividend yield. The factors affecting Equity IRR the most were the floor area ratio, sales price rise rate and construction cost, The factors affecting the profitability during operation stage were the initial rental fee and the interest rate at operation stage Adequate profitability for the enterprise type rental housing REITS to be listed is essential for stable and continuous supply of rental housing. To secure profitability, policies to lower interest rate at operation stage and to accept autonomous rental fee adjustment are needed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the Korea Real Estate Management Review
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
