The purpose of this study is to investigate the correlation between housing sales price and housing rent price in accordance with the region. To this end, the mutual influence between housing sales price and housing rent price in Ulsan city and region-specific casual relationship were analyzed.
As for an empirical analysis the casual relationship between variables were analyzed using the indicators between housing sales price and housing rent price and on the basis of results a unit root test method for time series entire period was utilized.
The results suggested that regarding the correlation coefficient between the housing sales price and housing rent price in 5 metropolitan cities, Seoul and the whole country, the whole country was as high as 0.682; Seoul was 0.492, the lowest; Gwangju was 0.952, the highest, indicating that housing sales price accompanies housing rent price. Regarding the housing sales price between Ulsan and other cities, the results of the analysis indicated the whole country and Seoul go with Ulsan. Busan is 3 months ahead of Ulsan, Deagu and Gwangjoo are 1 month ahead of Ulsan, Deajeon is 12 months ahead of Ulsan.
The cross-correlation between the housing sales price of Ulsan and the housing rent price of Gu(Gun) of Ulsan were analyzed. The results showed the housing sales price of Woolsan goes with the housing rent price of Gu(Gun) of Woolsan.
Granger causality test was conducted. was no causal relation between Ulsan and Deajeon. There was causal relation between Ulsan ↔ the whole country, Ulsan ↔ Seoul, Ulsan ↔ Busan , Ulsan ↔ Daegu and Ulsan ↔ Gwangju.
As for the housing rent price, there was causal relation between Ulsan ↔ Daegu and Ulsan ↔ Gwangju.
As for the housing sales price of Ulsan and the housing sales price of Gu(Gun) of Ulsan, there was casual relation between Namgu ↔ Donggu, Namgu ↔ Bukgu, Namgu ↔ Junggu, Bukgu ↔ Donggu and Uljugul ↔ Bukgu. As for the housing rent price of Ulsan, only Namgu ↔ Bukgu had causal relation. Taken together, with respect to the housing market there is the mutual influence between regions and the price in one region influences that of the neighboring regions.
With respect to the average housing sales price per 3.3 ㎡, 5 metropolitan cities was KRW6,520,000; whereas Busan was KRW6,960,000 and Ulsan was KRW7,020,000, indicating higher price than metropolitan cities. With respect to housing rent price per 3.3 ㎡, 5 metropolitan cities was KRW4,500,000; Busan was KRW4,590,000; Ulsan was KRW4,920,000, higher than metropolitan cities.
This high housing sales price of Ulsan will in general boost the housing sales price in the neighboring areas. If the housing sales price rises, the demand of housing will move to another areas, which will lead to a rise of housing sales price in wider areas.
The non-homeownership is Ulsan is 41%. Of 41%, housing rent is 14.7% and the monthly housing rent with deposit money is 20.4%, which will apparently lead to a rise of dwelling expenses.
The housing supply ratio of Ulsan is 106%, higher than other cities whereas its both housing sales price and housing rent price are high, indicating there is the requirement of further supply of housing and rental housing. The housing rent ratio of Ulsan was 72% as of Jun 2013, indicating there is the high likelihood of the problems in recovering deposit money when housing sales price declines. Thus it is essential to implement multi-dimensional policies such as