This study aims to compare the supply price and successful bid price for commercial property in Gwangju/Jeonnam Joint Innovation City and identify the pricing factors that may influence the supply price and successful bid price. In a large housing site/lot development business, commercial property is supplied at the successful bid price determined through a competitive tendering process. The minimum bid price is based on appraised price.
In fact, the price difference between supply price and successful bid price for commercial property in public housing site development district is very severe. The successful bid rate of commercial property that has recently been supplied is over 250% or there are sometimes unsold apartments due to absence of bidder.
The spatial scope of this study is Gwangju/Jeonnam Joint Innovative City.
The scope of this study in terms of content is first, to analyze the pricing factor for commercial property in innovative city. To analyze the pricing factor for commercial property, we collected the data on supply price and successful bid price for commercial property lot no. 245 in Gwangju/Jeonnam Joint Innovative City. Second, we focused on identifying the influencing factors on pricing for commercial property in innovative city and finding the causes of differences between supply price and successful bid price.
This study set the pricing model for analyzing and comparing the pricing factors that had an influence on supply price and successful bid price for commercial property.
The temporal scope of this study is from 2005 until 2007. We collected the data on pricing for commercial property that was supplied and awarded during this period.
To analyze the supply price and successful bid price pricing factors for commercial property in residential development project area, we conducted multiple regression analysis using Hedonic Pricing Model. We analyzed the pricing factors that might influence the supply price and those that might influence the successful bid price with two models: supply price model and successful bid price model and then compared the findings as a result of analyzing the two pricing factors.
To analyze this study, we used SPSS 33, statistical program suitable for correlation between variables and multiple regression analysis.
To compare the findings from the analysis of supply price model and successful bid price one, the two are equal in that administrative factor has the greatest effect, but different in that the second influencing factor is individual factor in supply price model, but environmental factor in successful bid price model. Given that this study is a comparative research method on commercial property, this suggests that the pricing factor having an influence on profitability of commercial property also has influence on successful bid price that can be seen as market value.
This result suggests that inappropriate factors are influencing the determination of supply price in that the price transacted in actual market is successful bid price rather than supply price, and use restriction needs to be considered more when determining the supply price for commercial property in innovative city.