This study empirically analyzed the spillover effect of housing sales prices in five major regions of Seoul using the FAVAR model to understand the spillover effect of housing sales prices by region. The variables used in this study are regional apart...
This study empirically analyzed the spillover effect of housing sales prices in five major regions of Seoul using the FAVAR model to understand the spillover effect of housing sales prices by region. The variables used in this study are regional apartment sales prices, apartment Chonsei prices, number of unsold houses, apartment sales transaction volume, and housing mortgage interest rates, and the time range is set from January 2014 to April 2023. As a result of the FAVAR model, it was confirmed that the rate of change in apartment sales prices in the southeastern region had a positive (+) effect on the rate of change in apartment sales prices in all other regions except the northeastern region. As a result of the spillover effect, comparing the size of the spillover effect to other regions, it was found that it was largest in the following order: the northeastern region, the northwest region, the downtown region, the southwest region, and the southeastern region. It was found that changes in apartment sales prices in the five major regions of Seoul were most influenced by changes in apartment sales prices in the northeastern region.