earticle

영어

The drastic increase of housing prices over the last five years has caused public conflict as condominiums have became unaffordable for many people. Some NGOs have claimed that following the Korean government's alleviation of price-ceiling measures in 1999, newly-built condominiums have been overpriced by construction companies resulting in rapid rises in existing housing prices. This study aims at analyzing whether the sale price of acquisition rights of new condominiums has influenced existing housing prices and the relationship between the pre-construction price of new condominiums and profit margin of construction companies by applying a Granger model. The findings indicate that pre- construction prices of new condominiums do not have a consistent effect on existing housing prices. In addition, there is no likelihood regarding the causality between the profit of construction companies and the pre-construction price of new condominiums.