Factors Determining the Price of Remodeled Multi-family Housing

Abstract

: Remodeling of multi-family house (MFH) has emerged as a major issue in the construction industry. Many decision-makers are struggling to determine whether to conduct a remodeling because of insufficient information including standard or method for projecting the price of their facilities after remodeling works. In this context, this research has conducted for analyzing how the price of the MFH is shifted by remodeling works. To achieve this research goal, (i) fourteen MFH remodeling cases were collected and (ii) price variation for the collected cases was analyzed in order to figure out how remodeling work affects the price of MFH cases. Finally, this research suggested the factors determining price of the MFH, wherein remodeling work has been conducted. From the results of this research, it is expected that the decision-makers can understand what is the crucial factors for determining the price of their MFH when they plans remodeling, and further this research can be a corner stone for developing a model for predicting the price of MFH if remodeling would be performed.

Critical Review on Economic Effect of Renovation Works for Sustainable Office Building Based on Opinions of Real-Estate Appraisers

“…The three previous studies mentioned in Section 2.2 [8,9,13] were conducted based on the actual renovated cases. In these studies, factors affecting the price change of renovated offices or apartments were analyzed by collecting renovation cases as well as the price change prior to and following renovation for each case, changes in various attributes, and by analyzing the significant relationship between the price change and the attribute change.…”

“…Kim et al [13] proposed six variables that affect the price of RMFH by analyzing 19 factors that affect the price of typical apartments through literature analysis and conducting correlation analysis between the price of RMFH and the 19 attributes through the analysis of actual RMFH cases. Consequently, they derived six factors that affect the price of RMFH: space area of unit house, gross area of floors, years elapsed since construction, reputation of construction company, number of parking lot, and location.…”

Model for predicting price change patterns in multi-family houses post renovation work in South Korea

“…To set the input variables, it is necessary to define the attributes that affect the price of the renovated MFH. Kim, Cho, and Kim (2016), which is a previous study of this research, proposed 19 parameters that affect the price of the renovated MFH in two stages. First, dozens of candidate influencers were derived through an analysis of 23 previous studies dealing with factors influencing the price of general MFHs.…”

“…Some existing studies have been conducted for typical MFHs in estimating their price or in identifying the factors influencing the price. However, most of these studies have attempted to estimate the price for new and existing MFHs, mainly using the method based on the typical building appraisal methods compensated by referring to the transaction cases (Kim, Cho, and Kim 2016).…”

“…Generally, the price of an MFH is influenced by various factors, including location, convenience of transportation, and educational environment (Choi and Song 2006;Jin et al 2012;Kim, Cho, and Kim 2016). As price changes due to renovation must be measured, the factors above should be controlled while assessing price changes.…”