Entering 18

Productivity of Space 22
Real Estate and Space Services 22
Economies of scale 23
Economies of Agglomeration 26
Volatility of spatial services 33
Choi Yoo-hyo's 38th use

Space and Credit 43
Space and People 43
Tenant Credit Risk 44
Landlord Credit Risk 46
Productivity and Credit 51

Spatial System 62
Uses and Density 63
Usage and Development Rights 68
Permit 75
Share 84
Area 92
Price 100

Space Change 110
Population, Economy, Wealth, and Urban Growth 110
Overdeveloped cities and land development 119
Irreversibility of Space 125
Downtown Revitalization and the Rise and Fall of Commercial Districts 135
Commercial property key money 143
Functional obsolescence of housing 148

Space Type 155
Workspace 155
Sales space 161
Residential and Accommodation Space 175
Distribution of Space 182

Space and Capital 187
Decomposition of Rights 187
Real assets 190
Rental deposit 200
Real Estate Investment Structure 216
Presale rights 234
Membership 242

The Value of Space 254
Net operating income 255
Management Fee Sharing Structure 259
How to Recognize the Benefit of a Deposit 265
Leverage and Special Purpose Vehicle Costs 267
Cash Flow and Investment Decision Structure 268

Space Product 281
Market Segmentation 282
Product differentiation 288
Product Changes 295

In conclusion 311

The Value of Space (Appendix) 319
Estimated Cash Flow Case 319
Capital Repayment 334
Deposit and Profit Repayment Act 341
Cash Flow from Development Projects 345
Real Estate Market Structure and Evaluation System 363

Reference 376
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133 Questions and Answers About Real Estate
Page with questions and answers
1 What is spatial productivity? 23
2. Is larger real estate more expensive? Or is smaller real estate more expensive? 24
3 What business districts are there in Seoul, and how expensive are they? 28
4 What store sells the most expensive items? 30
5 How much is rent in Myeongdong? 31
6 What is the sales-to-rent ratio? 35
7 Why is credit important? 43
8 What damages can result from hiring the wrong tenant? 44
9. What damages can occur if the landlord is caught in the wrong hands? 46
10 How do I avoid being kicked out of a building? 48
11 Which properties attract good tenants? 51
12 What is a post-lease lease? 52
13. Is the floor area ratio important? Is the building coverage ratio important? 66
14 How is land value formed in China? 69
15 What is the value of pure agricultural land? 70
16 How does the value of land leased property change? 73
17 What is Permit Shopping? 81
18 How Do Regulations Change Housing? 82
If you split a building and sell it, will it be more expensive or cheaper?
What is the governance structure of the 20-unit building? 86
21 What are apartments, condominiums, and co-ops in the United States? 87
22 Why do Korean apartments have so many balconies? 93
23 How Apartment Balconies Distort the Floor Plan
24 Why do each facility have a different area system? 97
25 What is a rental area? 99
26 Why does Korea have publicly announced land prices? 100
27 Why are real estate industry contracts and down payment agreements created? 101
28 How has our country's population changed over the past 600 years? 110
29 What is the most densely populated country in the world? 111
30 Which country has the fastest economic growth in the world? 113
31 What is the world's most rapidly urbanizing country? 114
32 Which country saves the most in the world? 116
33 How much money do Koreans have? 116
What is the percentage of self-employed people in 34 OECD countries? 118
35 Why Are Korean Cities Overdeveloped? 119
36 What are land readjustment projects and residential development projects? 120
What is the cumulative housing supply for land development projects? 121
38 What side effects did the land development project leave behind? 124
39 What is the irreversibility of space? 125
What is the transition cost of 40 spaces? 127
41 What Happens in an Irreversible City? 128
42 Why are buildings built small in the city center and large on the outskirts? 128
43 Why do commutes occur from the city center to the outskirts? 134
44 What are the urban revitalization phenomena in New York, Tokyo, Beijing, Shanghai, and Seoul? 136
45 Why do Seoul's commercial districts rise and fall so quickly? 142
46 Why are commercial property rights fees charged? 144
47 What happens when royalties are legalized? 147
48 What is functional obsolescence in housing? 148
49 How are office locations determined? 155
Why are there so many call centers in southwestern Seoul? 156
51. What is the profitability of regional city offices? 157
52 What are data centers and serviced offices? 159
53 How do the distribution structures of Korea and the United States differ? 162
54 What are marts and shopping malls in Korea? 165
55 What are the risks of commercial properties for sale? 167
56 What is a suburban shopping mall? 168
What are the pros and cons of the 57-seat theme park? 171
58 How do neighborhood living facilities work? 175
59 What is Time Sharing? 178
60 What is a personal warehouse? 181
61 How is ownership decomposed? 188
How much do Americans invest in real estate?
63 Why has it been difficult for institutional investors to invest in housing in our country? 192
64 What is the nature of real estate investment? 193
65 Why do small properties yield lower returns than large properties? 196
66 Why do people earn more when they have more money? 197
67 Why are Korea's rental deposits so unique? 200
Is the deposit a rent payment or a loan? 201
69 Why is a security deposit a type of option contract? 203
70 In what cases does the security deposit increase? 208
71 Why does a pre-war period occur? 210
Why are there no deposits for goshiwon?
73 How did the deposit increase economic efficiency? 215
74 How did the deposit benefit both landlords and tenants? 215
75 What is the real estate investment structure in Korea? 216
76 What is the difference between real estate bonds and equity? 219
77 Why Use a Special Purpose Vehicle for Real Estate Investments? 220
78 What is a conduit? 222
79 Why do individual wealthy individuals form corporations? 224
80 Why are private equity single-transaction funds dominant in the real estate investment market? 225
81 What are the advantages of real estate blind pool funds? 229
82 What are the advantages of real estate mutual funds? 229
83 Why were the investment structures for development and real estate investment different in Korea? 230
84 Why do conflicts of interest arise in Korea's development project structure? 232
85 Why is Korea developing space so short-sightedly? 233
86 What is a subscription right? 235
87 How do pre-sale rights benefit both buyers and developers? 239
What is the information asymmetry that arises from the 88 commercial space subscription rights? 240
What side effects does the 89 housing price ceiling system create? 240
What is a 90 Membership? 242
How do memberships benefit both members and golf course operators? 244
92 What happens if the value of a membership declines? 246
93 Why did direct financing through real estate emerge in Korea? 247
94 How does direct financing distribute excess profits? 248
95 How is real estate net operating income structured? 255
96 How are real estate operating expenses structured? 257
97 Who Pays the Management Fees: Landlord or Tenant? 259
98 Is there a margin in management fees? 261
99 What is the management fee sharing structure by real estate market? 263
100 Deposit: Should I Invest or Borrow? 265
101 How is real estate cash flow structured? 268
102 Why is real estate valuation based on pre-leverage cash flow? 270
103 What to Decide on in Real Estate Investments? 272
104 What is Market Segmentation? 282
105 What Do Single-Family Home Buyers Want? 283
106 What are the common characteristics of expensive apartment complexes? 285
Why are goshiwons more expensive per square foot than luxury single-family homes? 286
Why are three-bedroom residences built on the upper floors of studio apartments or commercial buildings?
109 What is Product Differentiation? 289
110 How is product differentiation achieved? 289
111 What benefits does product differentiation provide to consumers? 290
112 How should we develop a landmarking strategy? 291
113 How do apartment brands work in Korea? 293
114 What happens when economic growth slows? 297
115 What impact does economic growth and income growth have on the real estate market? 298
116 How are Korea's population and household structure changing? 302
117 What is the impact of China's economic growth? 307
118 What are the characteristics of the Korean real estate market? 311
119 What are the problems with Korea's real estate policy? 315
120 How Does Real Estate Investment Cash Flow Work in Korea? 319
121 What is equity multiplier? 331
122 How should we understand the deposit operating interest rate? 332
123 How are yields determined? 335
124 What are the capitalization rates of major cities in the Asia-Pacific region? 338
125 What are the characteristics of the capitalization rate for real estate with a security deposit? 341
126 What are the sale options for the development project? 345
127 What is the difference in financing between pre-sale and post-sale? 347
128 What are the advantages of pre-sale and post-sale? 357
129 What are the three methods for evaluating real estate? 366
130 Why are properties with buildings calculated by unit price per land area? 368
131 When is the value of a building overstated or understated? 372
132 Are indirect costs and development profits the land value or the building value? 373
133 Is value-added tax included in the real estate transaction price? 374

'The Value of Space' explains how the Korean real estate market operates structurally.
It describes why small and important events in the real estate market occur and how they change our lives.
The Korean real estate market was reconstructed using the keywords space, productivity, credit, system, change, type, capital, value, and product.
You can also read 133 questions and answers about the Korean real estate market.

This book was written for those interested in real estate, those engaged in practice and research in real estate development, investment, finance, analysis, management, evaluation, and policy, and those preparing for the real estate agent and real estate appraiser exams.
However, we have tried to make it easy to understand even for those who are not familiar with real estate.
--- Author: Park Seong-sik, Ph.D. in Urban Planning, Certified Real Estate Appraiser

"The Value of Space" is a book that analyzes the Korean real estate market in a three-dimensional way using the latest economic and management theories.
It is fun to read along because the logic is explained in an easy-to-understand but in-depth manner.
--- Pyeon Ju-hyeon, Ph.D. in Economics, Professor, Korea University Business School

The author, based on his extensive practical experience, has written a comprehensive and accessible account of the vital information and know-how of the real estate market.
It is full of helpful content for not only real estate beginners but also related professionals such as lawyers, real estate appraisers, certified public accountants, and real estate agents.
--- Lee Hyun-gyu, Korean/American attorney, Pacific Law Firm

This is the most interesting real estate book I've ever read.
This is the first book to provide insightful analysis of issues in real estate finance.
The more I read, the more I get into it.
--- Kim Beom-jun, Certified Financial Analyst (CFA), Hana Asset Management