Abstract
Research on the factors influencing the sale price of industrial complex factories, which play a crucial role in the entire manufacturing industry in Korea, is still incomplete. In this study, we empirically analyzed the characteristics of factories in industrial complexes to determine their impact on the sale price. This empirical analysis is based on data collected from 333 factories in the three main industrial complexes of small and medium enterprises in the metropolitan area: Banwol, Sihwa, and Namdong. The analysis results are as follows. First, in terms of location characteristics, the distance from highway interchanges and the distance from the subway station have a negative (-) the transaction price, while proximity to a main road has a positive effect. Second, concerning the building's characteristics, a larger the land area and total floor area, as well as a more complex main building structure, have a greater positive impact on the transaction price. However, the useful life negatively affects the transaction price because of physical and functional depreciation. Third, it was confirmed that the industry factory's industry affects the transaction price in relation to industry characteristics. Fourth, concerning regional policy characteristics, the designation of a regeneration business district has a positive impact on the transaction price. Therefore, manufacturing companies interested in acquiring factories in industrial complexes should conduct precise calculations of sales prices and make purchase decisions based on a medium- and long-term valuation and analysis of industrial properties and manufacturing companies . This should involve thorough consideration of location, building, industry, buyer, and regional policy characteristics specific to the main industry.
Published Version
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 callDisclaimer: 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.
