Analysis of Profitability Scenario by Public Contribution Ratio Level: Focusing on A Case Study of Apartment Housing Projects in Gapyeong County, Gyeonggi Province

This study aims to provide insights into determining an appropriate public contribution ratio that reflects market conditions by analyzing its impact on the profitability of private developers. To this end, the study examined the adequacy of public contribution ratio through scenario analyses of business feasibility based on recent apartment development projects in Gapyeong County, Gyeonggi Province, focusing on changes in the contribution ratio. The main findings and implications are as follows. From the perspective of local government, higher public contribution ratio bring greater benefits to the region. However, from the perspective of private developers, higher ratios results in reduced profitability. Thus, addressing this issue from a single perspective is not desirable. Furthermore, the appropriate level of public contribution may vary depending on the degree of housing market activity and the development conditions of the region. This suggests that differentiated public contribution ratio should be applied to high-demand and low-demand areas. Additionally, given recent market trends, it is essential to recognize that the standards for public contribution ratio may also change depending on the timing and market conditions.