An Analysis of Korean House Prices Movements with Asset Pricing Models

Abstract

Korean house prices have risen rapidly since year 2001 and there have been some worries that the recent house price hikes are too excessive. This paper empirically analyzes the movement of Korean house prices and derives some implications from it, based on three different theoretical asset pricing models; long-run supply demand model, present value model and general asset pricing model. The results from the analyses show that recent house prices are overall higher than the theoretical prices, thus requiring measures to stabilize house prices hikes.

Keywords

• 주택가격(House Price)
• 자산가격모형(Asset Precing Model)