In the Korean real estate market, apartments are traded by the price per pyeong of the apartments in transaction. Because of the reason for not using the price based on the land price for the portion of shared land, the building price is probably lack of recognition of the land portion of apartments. The objective of this study is to provide a ground for the proposition that it is important to check the portion of shared land for an apartment as a data for comparison with other apartments and thus information on the land portion of existing apartments should be shared. In order to attain the purpose of this study, we sampled 1,964 apartments in Busan Metropolitan City particularly entering on those auctioned since 1997, and measured the explanatory power of related factors for ordinary market price through multiple regression analysis using ordinary market price as a dependent variable. In the results of multiple regression analysis, the regression model showing high explanatory power for dependent variable ordinary market price was the model using size, type, age, land portion, estimated land price per pyeong and floor area ratio, and its adjusted R2 was as high as 0.928. A log-log model using independent variables private area, age, land portion and estimated land price per pyeong, adjusted R2 was 0.985 and F-value was 32,052 showing the highest levels among several models compared. This study is meaningful in that it conducted a field survey of the land portion of apartments for the first time, and performed liner regression analysis for apartment price.

In the Korean real estate market, apartments are traded by the price per pyeong of the apartments in transaction. Because of the reason for not using the price based on the land price for the portion of shared land, the building price is probably lack of recognition of the land portion of apartments. The objective of this study is to provide a ground for the proposition that it is important to check the portion of shared land for an apartment as a data for comparison with other apartments and thus information on the land portion of existing apartments should be shared. In order to attain the purpose of this study, we sampled 1,964 apartments in Busan Metropolitan City particularly entering on those auctioned since 1997, and measured the explanatory power of related factors for ordinary market price through multiple regression analysis using ordinary market price as a dependent variable. In the results of multiple regression analysis, the regression model showing high explanatory power for dependent variable ordinary market price was the model using size, type, age, land portion, estimated land price per pyeong and floor area ratio, and its adjusted R2 was as high as 0.928. A log-log model using independent variables private area, age, land portion and estimated land price per pyeong, adjusted R2 was 0.985 and F-value was 32,052 showing the highest levels among several models compared. This study is meaningful in that it conducted a field survey of the land portion of apartments for the first time, and performed liner regression analysis for apartment price.

Apartment Price Setting Model, land portion, land price