| Title |
A Study on Determinants for Apartment Remodeling in Seoul Metropolitan Area |
| Authors |
Cho, Yongkyung ; Lee, Jaewon ; Lee, Sangyoub |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2019.20.6.057 |
| Keywords |
Aging Apartment; Remodeling; Decision Making; Heckman Analysis; Seoul Metropolitan Area |
| Abstract |
If aging apartments are left unimproved through remodeling, the city will be eventually slum. As the government recognizes remodeling as an alternative to reconstruction, the law has been revised mainly to increase the housing area, increase the number of house and allow the vertical extension for making remodeling costs. However, the remodeling is still not activated yet in the market. Therefore, this study analyzes the decision factors of apartment remodeling in Seoul metropolitan area based on Heckman two-stage analysis considering sampling error. Research findings indicate that the decision for remodeling is determined by the characteristics of the household, housing, and time-lapse variables. And also the number of household members, net assets, housing satisfaction, the 11-20, 21-30, and more than 30 years of building are identified as the significant variables as a result of remodeling choice probability analysis. It is noteworthy that the significant variables from then remodeling cost analysis are net assets, area, more than 30 years of building, and unit housing price. It is also notable that the policy, which extend the housing area to cover remodeling cost, are not actually effective to activate the remodeling, and the age in the case of elderly people in Seoul and Gyeonggi-do who are expected to have high net assets and income is not significant variables. This study is expected to provide more objective and reliable implication to the policy makers, the home owner and the investors on the decision making process related to the remodeling project. |