A Study of Determined Price and Bid Price Commercial Sites Public Land Development Project Areas

Abstract

This study aims to compare the supply price and successful bid price for commercial property in Gwangju/Jeonnam Joint Innovation City and identify the pricing factors that may influence the supply price and successful bid price. In a large housing site/lot development business, commercial property is supplied at the successful bid price determined through a competitive tendering process. The minimum bid price is based on appraised price. The scope of this study in terms of content is first, to analyze the pricing factor for commercial property in innovative city. To analyze the pricing factor for commercial property, we collected the data on supply price and successful bid price for commercial property lot no. 245 in Gwangju/Jeonnam Joint Innovative City. Second, we focused on identifying the influencing factors on pricing for commercial property in innovative city and finding the causes of differences between supply price and successful bid price. To analyze this study, we used SPSS 33, statistical program suitable for correlation between variables and multiple regression analysis. To compare the findings from the analysis of supply price model and successful bid price one, the two are equal in that administrative factor has the greatest effect, but different in that the second influencing factor is individual factor in supply price model, but environmental factor in successful bid price model. Given that this study is a comparative research method on commercial property, this suggests that the pricing factor having an influence on profitability of commercial property also has influence on successful bid price that can be seen as market value.