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dc.contributor.advisorWilliam C. Wheaton.en_US
dc.contributor.authorKim, Kyungminen_US
dc.contributor.otherMassachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.en_US
dc.coverage.spatiala-ko---en_US
dc.date.accessioned2012-01-11T20:17:40Z
dc.date.available2012-01-11T20:17:40Z
dc.date.copyright2011en_US
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/68184
dc.descriptionThesis (S.M. in Real Estate Development)--Massachusetts Institute of Technology, Program in Real Estate Development in Conjunction with the Center for Real Estate, 2011.en_US
dc.descriptionThis electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.en_US
dc.descriptionCataloged from student-submitted PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (p. 67-68).en_US
dc.description.abstractThis study examines and forecasts the Seoul office market, which is going to face a big supply in the next few years. After reviewing several previous studies on the Dynamic model and the Seoul Office market, this thesis applies two structural econometric models to forecast trends of rent, vacancy, and new supply of office space of Seoul Office Market, which is going to face a big supply in the next a few years. The first model has rent and supply equations. The second model is a full model that consists of three simultaneous equations; rent, supply, and absorption equations Empirically, the simple model was tested against time-series data of the Seoul office market since 1975. Rent equation is explained by current office stock, current GDP and past rent and past GDP, both lagging one year. The supply equation explains new office supply by one year lagging completion, five and six years lagging rent and growth of GDP in two previous years. The second model is a full model that consists of three simultaneous equations: rent, supply, and absorption equations based on time-series data since 1991. In this model, rent is impacted by current vacancy rate, past rent and vacancy rate both lagging one year. The supply equation is explained by completion one year ago, five years lagging rent, and past vacancy rate lagging four years, and the absorption equation is expressed by GDP per employment, current GDP, one year ago rent, and occupied stocks. Using estimated models with exogenous supplies for the next six years, ten-year contingent forecasts are made based on three scenarios having different estimated GDP growths. The forecasts for both models demonstrate that untypical supply for next six years will impact office rent negatively in all of the scenarios. In short, the Seoul office market, strongly affected by big supply over demand until 2016, will tend to be become soft or tight during same period before supply goes down and rent reacts. Since late 2010s, however, the market will fully recover from oversupply.en_US
dc.description.statementofresponsibilityby Kyungmin Kim.en_US
dc.format.extent69 p.en_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectCenter for Real Estate. Program in Real Estate Development.en_US
dc.titleAn econometric analysis and forecasting of Seoul office marketen_US
dc.typeThesisen_US
dc.description.degreeS.M.in Real Estate Developmenten_US
dc.contributor.departmentMassachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.en_US
dc.identifier.oclc770684451en_US


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