A Study on the Influence of Service Area on Apartment Prices: Focusing on National Housing-sized Units in Gangnam, Seocho, Songpa, and the Second-phase New Towns in 2023

In the domestic apartment market, additional free space has long been a factor that has increased consumer preference. Since the emergence of the national housing size (with an area of exclusive use space of 85m or less) in the 1970s, consumers have overcome the limitations 2 of the area of small and medium-sized housing through additional free space. In addition, since the legalization of balcony expansion in 2005, additional free space has become larger and appeared in various forms. additional free space has various issues that cover the institutional and industrial aspects of the domestic apartment market, but there is a lack of research linking additional free space to real estate value. Therefore, this study conducted an empirical analysis of the impact of additional free space on apartment prices. We selected 12 apartment complexes in the three of Gangnam districts and the second phase of new towns that were supplied after 2005, and After securing floor plans of an apartment with an area of exclusive use space of 85m or less, the additional free space was calculated 2 using the AutoCAD program. Linear regression analysis was conducted using Hedonic price models for 790 transactions between April and October 2023. The analysis showed that the additional free space ratio and the dependent variable, price per area, were positively related, and that the smaller the apartment, the higher the utility of the additional free space. It was also confirmed that the additional free space ratio of apartments in the three of Gangnam region was lower than that of apartments in the second-phase New Town region. This study is significant in that it calculated the additional free space to an accurate approximation and used it for analysis. However, there are some issues with the calculation of the area size, which was calculated based on some arbitrary judgments, and thus there are limitations in data. We hope to conduct follow-up research by refining the data in the future.