A Study on the Rent Determinants of Share House in Seoul

Abstract

This study attempts to investigate the determinants of rent prices for share house in Seoul through empirical analyses with using Hedonic Price Model. This study data were collected from hompages of share house companies. The spatial scope of this study was limited in Seoul and the temporal scope was limited from September 2016 to March 2017. The collected data included monthly rent prices per one person, regional characteristics, building characteristics, and share house management characteristics. According to the result of this study, in the regional characteristics, there is a difference by regional locations in the rent prices of share house. The regional variables, which are Gangnam-Gu, Mapo-Gu, Yeongdeungpo-Gu, and Yongsan-Gu, increase the rent prices. As the distance of subway station and market become shorter, the rent prices become higher. Also, as the transfer of subway station becomes possible, the rent prices are raised. These results are reflected in the desire of convenience for purchasing foods and using public transportation. In case of commercial buildings, it is associated with higher rent prices than other types of buildings, whereas the multi-household house variable is associated with lower rent prices. Also, as the number of bathroom in share house increases, the rent prices are decreased. As the area of room in share house become wider, the rent prices are increased. From the result of the variable which is room type of share house, we could know that the rent prices are decreased as many people live with sharing a room as possible. The implication of this study is that it analyzes share house which is one of alternatives to solve problems such as poor housing of young single households, and suggests the trend and efficient management of share house. Here we expect that our research about share house, which has not studies actively yet, would contribute to the improvement for support and policies of share house.