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Land Use Controls and Housing Prices in Korea

Author

Listed:
  • Lawrence Hannah

    (World Bank)

  • Kyung-Hwan Kim

    (Sogang University, Korea)

  • Edwin S. Mills

    (Kellog Graduate School of Management, Northwestern University, Leverone Hall, 2001 Sheridan Road, Evanston, lL 60108-2006, USA)

Abstract

This paper analyses the effects of government controls over land supply on housing in the rapidly growing cities of Korea. Whilst Korea's urban population more than doubled in the period 1973-88, urban land for residential use grew by only 65 per cent. The result has been extremely rapid rises in city residential land values, although the more dense use of residential land has offset some of this rise on house prices. A substantial part of the rise in house prices has resulted from the government's tendency to underallocate land to urban residential use, although part of the government's surplus is used to subsidise low-income housing within the same projects.

Suggested Citation

  • Lawrence Hannah & Kyung-Hwan Kim & Edwin S. Mills, 1993. "Land Use Controls and Housing Prices in Korea," Urban Studies, Urban Studies Journal Limited, vol. 30(1), pages 147-156, February.
    • Handle: RePEc:sae:urbstu:v:30:y:1993:i:1:p:147-156
    DOI: 10.1080/00420989320080091
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    References listed on IDEAS

    as
    1. Kim, Kyung-Hwan & Mills, Edwin S., 1988. "Korean development and urbanization: Prospects and problems," World Development, Elsevier, vol. 16(1), pages 157-167, January.
    2. Capozza, Dennis R. & Helsley, Robert W., 1989. "The fundamentals of land prices and urban growth," Journal of Urban Economics, Elsevier, vol. 26(3), pages 295-306, November.
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    2. 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.
    3. Solé-Ollé, Albert & Viladecans-Marsal, Elisabet, 2012. "Lobbying, political competition, and local land supply: Recent evidence from Spain," Journal of Public Economics, Elsevier, vol. 96(1), pages 10-19.
    4. Quigley, John M. & Swoboda, Aaron, 2006. "A General Equilibrium Analysis of Land Use Restrictions and Residential Welfare," Berkeley Program on Housing and Urban Policy, Working Paper Series qt11k4p0vt, Berkeley Program on Housing and Urban Policy.
    5. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1399-1455, Elsevier.
    6. Edwin S. Mills, 2002. "Government Urban Growth Controls," International Real Estate Review, Global Social Science Institute, vol. 5(1), pages 1-11.
    7. Miquel-Àngel Garcia-López & Albert Solé-Ollé & Elisabet Viladecans Marsal, 2014. "Do Land Use Policies Follow Road Construction," CESifo Working Paper Series 4672, CESifo.
    8. Brueckner, Jan K. & Mation, Lucas & Nadalin, Vanessa G., 2019. "Slums in Brazil: Where are they located, who lives in them, and do they ‘squeeze’ the formal housing market?," Journal of Housing Economics, Elsevier, vol. 44(C), pages 48-60.
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    10. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.

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