Woney Lee and Jun-Hyung Kim (2018. 12), "Determinants of the presale price of retail stores in Magok, Seoul," Seoul Studies, 19(4): 21-42.
Abstract
This study analyzed the determinants affecting the presale price of retail store based on the 1,760 sale cases in the Magok district of Seoul. Through this study, it is examined whether the factors affecting the sale price and the rental of retail store have the same effect on the presale price. In addition, the impact on the presale price by supplier characteristics also examined. For the analysis method, multi-level model is used instead of OLS, considering that retail store's characteristics have a hierarchical structure by building where it is located. As a result of the analysis, most of the factors affecting the sale price and rent have a significant effect on the presale price. The supplier characteristics are statistically significant only in the interaction term: when the sale of construction company is inferior, the better the sale of developer, the lower the presale price. This means that even in newly developed retail complex, the buyer has sufficient ability to judge the appropriateness of the presale price and the supplier also sets the presale price equivalent to the market price.
Keywords
retail store; presale price; supplier; pricing; multi-level model