Localized Spatiotemporal Effects in the Determinants of Property Prices: A Case Study of Seoul

This research investigates both spatial and temporal elements of the apartment pricing process in Seoul, South Korea by modeling the determinants of apartment prices over a ten-year period from 2006 to 2015 with a hedonic price model containing a spatio-temporal lag model calibrated by geographically weighted regression (GWR). The results yield information on both spatial and temporal variations in the processes affecting apartment prices and demonstrate the use of GWR for generating local spatial dependency measures which are conditioned on various covariates rather than being simple descriptions of pattern. The study utilizes a combined approach to account for both spatial dependency in housing prices and spatial heterogeneity in the processes generating those prices. The results suggest that there are spatial variations in the determinants of apartment prices and that these spatial variations are fairly consistent over time. The effect of the spatial lag on house prices exhibits strong spatial variation which again is reasonably consistent over time.