Determinants of Asset Growth Rate in Urban Housing Renewal Projects:
A Mathematical Approach

Yong Gag Lee and Jun-Hyung Kim (2024. 12), "Determinants of Asset Growth Rate in Urban Housing Renewal Projects: A Mathematical Approach," Journal of the Korea Planners Association, 59(7): 123-132.
이용각·김준형 (2024. 12), “주택정비사업 비례율의 결정요인: 수리적 접근”, 「국토계획」, 59(7): 123-132.

Abstract

This study sought to identify key determinants by reconstructing the existing Asset Growth Rate (AGR) formula, which includes previous asset value, final asset value, and project cost, into a new formula incorporating factors such as floor area ratio, land price, and sales price. Furthermore, the validity of the new AGR formula was tested using actual business feasibility analysis data. The results revealed that the new AGR formula depends on variables such as the floor area ratio, the ratio of sale price to land price, the ratio of sale area to total floor area, and the ratio of project cost to sale price. No specific or consistent patterns were identified among these determinants. Simulation results showed that AGR values calculated using the new formula were almost the same as those obtained with the original formula. Analysis of individual variables indicated that AGR increases when the floor area ratio is higher, the sale price relative to land price is higher, the sale area relative to total floor area is larger, and the ratio of project cost to sale price is lower. The new AGR formula not only clarifies the relationships between individual variables and AGR but also provides strategic insights for urban housing renewal projects by accounting for individual variables.

Keywords

Asset Growh Rate, Floor Area Ratio, Renewal Project, Project Feasibility Analysis, Project Cost
비례율, 용적률, 정비사업, 사업성 분석, 사업비