Value Influencing Factors of Multi-Owned Retail Properties in Seoul

Abstract

Unlike residential properties which are recently decreasing in transaction due to high interest rates, multi-owned retail properties have gradually increasing in transaction. With the expansion of transaction, issues for property tax such as equity of taxpayers are also raised. The assessed values of multi-owned retail properties are divided into land and building. The current base value, an assessed value of buildings, does not reflect a market value of partitioned buildings such as multi-owned retail properties largely affected by horizontal and vertical usefulness for fixing a price of real-estates. Since the assessed value is based on market value, the analysis of value influencing factors for market prices can be utilized as an alternative of market value to improve the estimation of assessed values. As a result, the value of the multi-owned retail properties is significantly influenced by characteristics of individual property such as exclusive possession area, escalator, main exit, corner store and locational characteristics including floor total building area, building age and individual public land prices. In the case of the vertical usefulness which is not considered as a factor to fix the current base value, it is expected to alleviate inequity of payers for the tax of multi-owned retail properties.