A Study on the Affecting Factors on the Apartment Purchase Price in Busan

Abstract

This study analysis on the determinant factors influencing of apartments prices in Busan which shows more significant growth rate than the change in house prices across the country in recent years. Research method conducted in-depth analyses base on 2 indicators by dividing the types of high and low housing prices market. And, it explores some influential factors towards the change of housing prices using regression analysis. To sum up the result of analysis, the housing market is differentiated according to difference in housing price. Ten variables such as ‘apartment rental price’, ‘average price fluctuation rate’, ‘average rent price fluctuation rate’, ‘growth rate of detached house’, ‘rate of elderly people’, ‘rate of the national basic living security’, ‘rate of multi-family housing’, ‘rate of deteriorated housing’, ‘number of major facilities’, ‘manufacturer s number’ were analyzed as determinants of apartment purchase price in higher apartment price market. Also seven variables such as ‘apartment rental price’, ‘growth rate of apartment’, ‘number of major facilities’, ‘number of attraction facilities’, ‘manufacturer s number’, ‘number of service providers’, ‘existence of development positive factor’ were analyzed as significant variables that affect the price fluctuations of lower apartment price market in Busan.