The Time Needed to Secure a Development Site: A Case Study in Seoul

Securing a development site in the early stages of real estate development projects plays a crucial role in their successful implementation. Thus, this study aims to empirically analyze the factors that influence the site acquisition period in the parcel acquisition process for real estate development. To this end, statistical analysis was performed using the ordered logit model on the basis of actual negotiation data collected from the acquisition of multifamily properties in Seongsu-dong, Seoul. The analysis included variables such as sales price, land area size, holding period, owner-occupied status, multiple home ownership, debt amount, and household head characteristics. The results showed that sales price, land area size, holding period, owner-occupied status, multiple home ownership, and debt amount had statistically significant effects on the acceptance of the seller’s price offer. This initial empirical study quantitatively analyzes the sales contract acceptance period of property sellers in the Korean real estate development field. It has significant academic and practical implications, as it utilizes actual data with the help of a game theoretical approach. Our study is expected to provide practical insights into strategic decision-making in purchase negotiations aimed at securing development sites.