Abstract
This study analyzes the effect of green characteristics on sales of unsold housing stock, using a multilevel growth model, in Gyeonggi Province, South Korea from 2012 to 2018. The green characteristics we estimated are external factors such as the proximity to urban parks and mountain trails located outside the housing complex and internal factors such as whether the area of communal open space within the complex exceeds a certain percentage. The results suggest that potential home-buyers are interested in green space inside rather than outside a housing complex in a suburban setting. Housing complexes with large enough communal open spaces had a 0.094 higher unsold unit ratio than complexes with small communal open spaces, but the surplus decreased more rapidly; the ratio declines by 0.028 per time unit. On the other hand, the results show no statistically significant effects of the distance to external green areas. This might be due to that public urban parks might not be an attraction to residents when forests and/or agricultural fields are in close proximity. The findings of this research will be utilized by construction companies and public institutions holding unsold units in improving their sales performance, not only in South Korea but also in other Asian regions showing a similar housing development pattern.
Highlights
Mismatch in the demand and supply of housing has been a worldwide concern
This study empirically investigates the effectiveness of green amenities in inducing the sale of unsold housing stock in the suburban residential development projects in Gyeonggi Province, South Korea
The intraclass correlation coefficient (ICC) is 0.605, which indicates that 60.5% of the total variance in the unsold units was due to different characteristics of each housing complex, justifying the use of multilevel growth models
Summary
Mismatch in the demand and supply of housing has been a worldwide concern. While many countries have suffered from the housing shortage, housing surplus generates substantial problems. In cities of rapidly urbanizing countries, governments and private sectors have commonly implemented large-scale suburban residential development projects since the 1980s to resolve urban housing shortage and stabilize housing prices [1,2,3] While such developments are still ongoing, a portion of the completed housing units have not been contracted for either before or during construction and remain unsold upon completion of the complex. In densely developed urban residential settings, it is reported that green amenities such as parks and open spaces play an important role in creating a pleasant living environment [21,22,23] Those preferences have been incorporated into urban housing prices [24,25,26]. This study empirically investigates the effectiveness of green amenities in inducing the sale of unsold housing stock in the suburban residential development projects in Gyeonggi Province, South Korea. We conclude with a discussion of the implications of our findings and future research directions
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