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Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea

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Názov: Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea
Autori: Chang-Soo Noh, Min-Ki Hyun, Seung-Hoon Yoo
Zdroj: Energies, Vol 18, Iss 14, p 3809 (2025)
Informácie o vydavateľovi: MDPI AG, 2025.
Rok vydania: 2025
Zbierka: LCC:Technology
Predmety: district heating system, residential heating method, housing price, hedonic price model, Technology
Popis: This study empirically delves into whether residential heating methods significantly affect apartment prices in Uiwang City, a suburban city near the Seoul Metropolitan area, South Korea. Using data from 1256 apartment sales, where both district heating systems (DHSs) and individual heating systems (IHSs) coexist, a hedonic price equation was estimated to analyze the impact of the heating method choices on housing values. Various housing attributes, including physical, locational, and environmental factors, were controlled, and multiple regression models were compared to identify the best-performing specification. The results show that apartments equipped with a DHS are priced, on average, KRW 92 million (USD 72 thousand) higher than those with an IHS. The price difference corresponds to KRW 849 thousand (USD 665) per m2 and possesses the statistical significance at the 5% level. Moreover, it is quite meaningful, representing roughly 11.2% of the price of an average apartment. These findings suggest that the use of DHS has a positive effect on apartment prices that reflect consumers’ preferences, beyond its advantages in stable heat supply and energy cost savings. This article provides empirical evidence that DHS can serve as an important urban infrastructure contributing to asset value enhancement. Although this study is based on a specific geographic area and caution must be exercised in generalizing its findings, it reports the interesting finding that residential heating method significantly affects housing prices.
Druh dokumentu: article
Popis súboru: electronic resource
Jazyk: English
ISSN: 1996-1073
Relation: https://www.mdpi.com/1996-1073/18/14/3809; https://doaj.org/toc/1996-1073
DOI: 10.3390/en18143809
Prístupová URL adresa: https://doaj.org/article/ffe1b4bc13a74d92bb6f255ee04b130b
Prístupové číslo: edsdoj.ffe1b4bc13a74d92bb6f255ee04b130b
Databáza: Directory of Open Access Journals
Popis
Abstrakt:This study empirically delves into whether residential heating methods significantly affect apartment prices in Uiwang City, a suburban city near the Seoul Metropolitan area, South Korea. Using data from 1256 apartment sales, where both district heating systems (DHSs) and individual heating systems (IHSs) coexist, a hedonic price equation was estimated to analyze the impact of the heating method choices on housing values. Various housing attributes, including physical, locational, and environmental factors, were controlled, and multiple regression models were compared to identify the best-performing specification. The results show that apartments equipped with a DHS are priced, on average, KRW 92 million (USD 72 thousand) higher than those with an IHS. The price difference corresponds to KRW 849 thousand (USD 665) per m2 and possesses the statistical significance at the 5% level. Moreover, it is quite meaningful, representing roughly 11.2% of the price of an average apartment. These findings suggest that the use of DHS has a positive effect on apartment prices that reflect consumers’ preferences, beyond its advantages in stable heat supply and energy cost savings. This article provides empirical evidence that DHS can serve as an important urban infrastructure contributing to asset value enhancement. Although this study is based on a specific geographic area and caution must be exercised in generalizing its findings, it reports the interesting finding that residential heating method significantly affects housing prices.
ISSN:19961073
DOI:10.3390/en18143809