Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea
This study empirically delves into whether residential heating methods significantly affect apartment prices in Uiwang City, a suburban city near the Seoul Metropolitan area, South Korea. Using data from 1256 apartment sales, where both district heating systems (DHSs) and individual heating systems...
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MDPI AG
2025-07-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/18/14/3809 |
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| author | Chang-Soo Noh Min-Ki Hyun Seung-Hoon Yoo |
| author_facet | Chang-Soo Noh Min-Ki Hyun Seung-Hoon Yoo |
| author_sort | Chang-Soo Noh |
| collection | DOAJ |
| description | This study empirically delves into whether residential heating methods significantly affect apartment prices in Uiwang City, a suburban city near the Seoul Metropolitan area, South Korea. Using data from 1256 apartment sales, where both district heating systems (DHSs) and individual heating systems (IHSs) coexist, a hedonic price equation was estimated to analyze the impact of the heating method choices on housing values. Various housing attributes, including physical, locational, and environmental factors, were controlled, and multiple regression models were compared to identify the best-performing specification. The results show that apartments equipped with a DHS are priced, on average, KRW 92 million (USD 72 thousand) higher than those with an IHS. The price difference corresponds to KRW 849 thousand (USD 665) per m<sup>2</sup> and possesses the statistical significance at the 5% level. Moreover, it is quite meaningful, representing roughly 11.2% of the price of an average apartment. These findings suggest that the use of DHS has a positive effect on apartment prices that reflect consumers’ preferences, beyond its advantages in stable heat supply and energy cost savings. This article provides empirical evidence that DHS can serve as an important urban infrastructure contributing to asset value enhancement. Although this study is based on a specific geographic area and caution must be exercised in generalizing its findings, it reports the interesting finding that residential heating method significantly affects housing prices. |
| format | Article |
| id | doaj-art-ffe1b4bc13a74d92bb6f255ee04b130b |
| institution | DOAJ |
| issn | 1996-1073 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj-art-ffe1b4bc13a74d92bb6f255ee04b130b2025-08-20T02:45:45ZengMDPI AGEnergies1996-10732025-07-011814380910.3390/en18143809Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South KoreaChang-Soo Noh0Min-Ki Hyun1Seung-Hoon Yoo2Department of Future Energy Convergence, Graduate School, Seoul National University of Science & Technology, Seoul 01811, Republic of KoreaDepartment of Energy Policy, Graduate School of National Defense Convergence Science, Seoul National University of Science & Technology, Seoul 01811, Republic of KoreaDepartment of Future Energy Convergence, College of Creativity and Convergence Studies, Seoul National University of Science & Technology, Seoul 01811, Republic of KoreaThis study empirically delves into whether residential heating methods significantly affect apartment prices in Uiwang City, a suburban city near the Seoul Metropolitan area, South Korea. Using data from 1256 apartment sales, where both district heating systems (DHSs) and individual heating systems (IHSs) coexist, a hedonic price equation was estimated to analyze the impact of the heating method choices on housing values. Various housing attributes, including physical, locational, and environmental factors, were controlled, and multiple regression models were compared to identify the best-performing specification. The results show that apartments equipped with a DHS are priced, on average, KRW 92 million (USD 72 thousand) higher than those with an IHS. The price difference corresponds to KRW 849 thousand (USD 665) per m<sup>2</sup> and possesses the statistical significance at the 5% level. Moreover, it is quite meaningful, representing roughly 11.2% of the price of an average apartment. These findings suggest that the use of DHS has a positive effect on apartment prices that reflect consumers’ preferences, beyond its advantages in stable heat supply and energy cost savings. This article provides empirical evidence that DHS can serve as an important urban infrastructure contributing to asset value enhancement. Although this study is based on a specific geographic area and caution must be exercised in generalizing its findings, it reports the interesting finding that residential heating method significantly affects housing prices.https://www.mdpi.com/1996-1073/18/14/3809district heating systemresidential heating methodhousing pricehedonic price model |
| spellingShingle | Chang-Soo Noh Min-Ki Hyun Seung-Hoon Yoo Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea Energies district heating system residential heating method housing price hedonic price model |
| title | Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea |
| title_full | Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea |
| title_fullStr | Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea |
| title_full_unstemmed | Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea |
| title_short | Residential Heating Method and Housing Prices: Results of an Empirical Analysis in South Korea |
| title_sort | residential heating method and housing prices results of an empirical analysis in south korea |
| topic | district heating system residential heating method housing price hedonic price model |
| url | https://www.mdpi.com/1996-1073/18/14/3809 |
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