Housing quality evaluation and housing choice using PIF: A case of the Bundang new town housing market in Korea

Housing quality has been drawing people's attention due to recent changes in the housing market as well as an increasing interest in the quality of living in Korea. For the first time, this study uses the PIF (Perfect Information Frontier) to analyse the housing market. This study aims to objectively evaluate housing quality and provide information on housing choices by using PIF to analyse highrise apartments (and condominiums) that are representative housing types in Korea. For the purpose of this paper, we developed a quality measurement model comprising both the quantitative quality and the perceived (qualitative) quality so we could consider the comprehensive housing features based on the opinions of 44 real estate professionals. The subjects of this study included 20 apartment complexes with 31 to 33 pyeong (1 pyeong 1/4 3.3 m²) apartments in Bundang New Town within the Seoul metropolitan area. Based on objective evaluation standards extracted from the model, we measured the quantitative quality. We also obtained the PIF using four types of market prices: transaction price and transaction price per pyeong, as well as monthly rent and monthly rent per pyeong. Each of these is an important factor that objectively measures and evaluates the quality of the target apartments. The perceived quality was assessed through studies of both consumers and brokers. The models and the PIF tools used in this paper could be applied to cities and countries such Singapore or Hong Kong; in fact, many developing countries constructing numerous apartment complexes within a relatively short period of time could benefit from this study.