An Hedonic Valuation of Landmark Factors on Super High-Rise Residential Building Prices in Seoul (Republic of Korea)

Abstract

The objective of this study is to analyze the influence of landmark factors on the price of super high-rise residential buildings. The level of influence is analyzed by means of an hedonic pricing model. In this paper the height and area are identified as landmark factors in analyzing the landmark's influence quantitatively. Also, the concept of relative quantity is introduced regarding the height and area because the landmark factors involve comparisons with neighboring buildings rather than by the building's absolute characteristics alone. Relative height and relative area derived by such an approach were established as independent variables for the hedonic pricing model, along with conventional price-determining factors. Samples subjected to this analysis included thirty super high-rise residential buildings each containing at least thirty stories and all located in Seoul. Results from a linear regression model and a semi-log regression model revealed that p-values were less than 0.05, indicating that the regression coefficients of relative height and relative number of stories are significant.