IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i23p16495-d1292698.html
   My bibliography  Save this article

Do Public-Led Housing Site Development Projects Affect Local Housing Prices: A Proposal for a Comprehensive Policy Evaluation Methodology

Author

Listed:
  • Jina Kim

    (Department of Real Estate Studies, Konkuk University, Seoul 05029, Republic of Korea)

  • Seungmin Jee

    (Department of Real Estate Studies, Konkuk University, Seoul 05029, Republic of Korea)

  • Seunghan Ro

    (Department of Real Estate Studies, Konkuk University, Seoul 05029, Republic of Korea)

Abstract

As the population in urban areas increases, the importance of adequate public-led development policies for sustainable cities with affordable housing is becoming more highlighted. In this regard, this study aims to determine the effectiveness of public-led urban development policies for sustainable growth in urban areas, specifically measuring the effect of housing site development projects on housing prices. The geographical scope of the study is the project sites and their surrounding areas in South Korea, and the temporal background is from 2006 to 2023. The project sites were subdivided into four groups by using the Self-Organization Map (SOM), a machine-learning-based clustering analysis, to collect characteristics of each region. Then, the impact of the policy and the prediction of the real estate market of each cluster were analyzed by applying the DID and LSTM models, which have recently been proven to show a high validity. The results show that each cluster had different characteristics and effects from the development projects, depending not simply on the location, but on several characteristics, including the level of size, infrastructure installation, input cost, etc. Furthermore, it is expected for future studies that more detailed research should be conducted with larger datasets of the regional characteristics.

Suggested Citation

  • Jina Kim & Seungmin Jee & Seunghan Ro, 2023. "Do Public-Led Housing Site Development Projects Affect Local Housing Prices: A Proposal for a Comprehensive Policy Evaluation Methodology," Sustainability, MDPI, vol. 15(23), pages 1-27, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16495-:d:1292698
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/23/16495/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/23/16495/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tan, Ronghui & Xu, Shuxian, 2023. "Urban growth boundary and subway development: A theoretical model for estimating their joint effect on urban land price," Land Use Policy, Elsevier, vol. 129(C).
    2. Albouy, David & Ehrlich, Gabriel, 2018. "Housing productivity and the social cost of land-use restrictions," Journal of Urban Economics, Elsevier, vol. 107(C), pages 101-120.
    3. Ooi, Joseph T.L. & Le, Thao T.T., 2013. "The spillover effects of infill developments on local housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 850-861.
    4. Engelhardt, Gary V. & Poterba, James M., 1991. "House prices and demographic change: Canadian evidence," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 539-546, December.
    5. Geoffrey Payne, 2001. "Lowering the ladder: Regulatory frameworks for sustainable development," Development in Practice, Taylor & Francis Journals, vol. 11(2-3), pages 308-318, May.
    6. Quigley, John M. & Rosenthal, Larry A., 2005. "The Effects of Land-Use Regulation on the Price of Housing: What Do We Know? What Can We Learn?," Berkeley Program on Housing and Urban Policy, Working Paper Series qt90m9g90w, Berkeley Program on Housing and Urban Policy.
    7. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    8. Peter J. Boettke & Alain Marciano, 2017. "The distance between Buchanan's “An Economic Theory of Clubs” and Tiebout's “A Pure Theory of Local Public Expenditures”. New insights based on an unpublished manuscript," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 24(2), pages 205-237, March.
    9. Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
    10. Jan K. Brueckner, 2000. "Urban Sprawl: Diagnosis and Remedies," International Regional Science Review, , vol. 23(2), pages 160-171, April.
    11. Genevieve Giuliano & Sanggyun Kang & Quan Yuan, 2019. "Agglomeration economies and evolving urban form," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 377-398, December.
    12. Brueckner, Jan K., 1980. "A vintage model of urban growth," Journal of Urban Economics, Elsevier, vol. 8(3), pages 389-402, November.
    13. David Miles, 2012. "Population Density, House Prices and Mortgage Design," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(5), pages 444-466, November.
    14. Mankiw, N. Gregory & Weil, David N., 1989. "The baby boom, the baby bust, and the housing market," Regional Science and Urban Economics, Elsevier, vol. 19(2), pages 235-258, May.
    15. Xiongbin Lin & Ting Ren & Hao Wu & Youzhi Xiao, 2021. "Housing price, talent movement, and innovation output: Evidence from Chinese cities," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 76-103, February.
    16. Chunil Kim & Jinsoo Ko, 2023. "Unintended Consequences of Housing Policies: Evidence from South Korea," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    17. Zahirovich-Herbert, Velma & Gibler, Karen M., 2014. "The effect of new residential construction on housing prices," Journal of Housing Economics, Elsevier, vol. 26(C), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carozzi, Felipe, 2020. "The role of demand in land re-development," LSE Research Online Documents on Economics 103690, London School of Economics and Political Science, LSE Library.
    2. Creina Day, 2018. "Population and house prices in the United Kingdom," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(2), pages 127-141, May.
    3. Carozzi, Felipe, 2020. "The role of demand in land re-development," Journal of Urban Economics, Elsevier, vol. 117(C).
    4. Han, Wenjing & Zhang, Xiaoling & Zheng, Xian, 2020. "Land use regulation and urban land value: Evidence from China," Land Use Policy, Elsevier, vol. 92(C).
    5. Arno Vlist & Daniel Czamanski & Henk Folmer, 2011. "Immigration and urban housing market dynamics: the case of Haifa," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 585-598, December.
    6. Andrii Parkhomenko, 2018. "The Rise of Housing Supply Regulation in the US: Local Causes and Aggregate Implications," 2018 Meeting Papers 275, Society for Economic Dynamics.
    7. David Miles, 2012. "Population Density, House Prices and Mortgage Design," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(5), pages 444-466, November.
    8. Ohtake, Fumio & Shintani, Mototsugu, 1996. "The effect of demographics on the Japanese housing market," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 189-201, April.
    9. Creina Day, 2018. "Australia's Growth in Households and House Prices," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(4), pages 502-511, December.
    10. Huub Ploegmakers & Pascal Beckers & Erwin Van der Krabben, 2018. "The impact of planning intervention on business development: Evidence from the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 55(14), pages 3252-3273, November.
    11. Zhenhua Chen & Laurie A. Schintler, 2023. "Rediscovering regional science: Positioning the field's evolving location in science and society," Journal of Regional Science, Wiley Blackwell, vol. 63(3), pages 617-642, June.
    12. Changkyu Choi & Hojin Jung, 2017. "Does an economically active population matter in housing prices?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(15), pages 1061-1064, September.
    13. Zhang, Junfu, 2023. "JUE Insight: Measuring the Stringency of Land Use Regulation Using a Shadow Price Approach," Journal of Urban Economics, Elsevier, vol. 133(C).
    14. Hettihewa, Samanthala & Saha, Shrabani & Zhang, Hanxiong, 2018. "Does an aging population influence stock markets? Evidence from New Zealand," Economic Modelling, Elsevier, vol. 75(C), pages 142-158.
    15. Pablo A. Guerron-Quintana & Ryo Jinnai, 2013. "Liquidity, Trends and the Great Recession," UTokyo Price Project Working Paper Series 015, University of Tokyo, Graduate School of Economics.
    16. Swan, Craig, 1995. "Demography and the demand for housing A reinterpretation of the Mankiw-Weil demand variable," Regional Science and Urban Economics, Elsevier, vol. 25(1), pages 41-58, February.
    17. Sun, Tianyu & Chand, Satish & Sharpe, Keiran, 2018. "Effect of aging on housing prices: evidence from a panel data," MPRA Paper 94418, University Library of Munich, Germany, revised 01 Mar 2019.
    18. Shimizu, Chihiro & Deng, Yongheng & Kawamura, Yasuhito & Nishimura, Kiyohiko, 2016. "Analysis of policy options to address Japan's declining population, shrinking birthrate, and aging society," HIT-REFINED Working Paper Series 33, Institute of Economic Research, Hitotsubashi University.
    19. Nakajima, Kentaro & Takano, Keisuke, 2023. "Estimating the effect of land use regulation on land price: At the kink point of building height limits in Fukuoka," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    20. Yihua Wang & Tomoko Kinugasa, 2022. "The relationship between demographic change and house price: Chinese evidence," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 43-65, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16495-:d:1292698. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.