# RECORD f39f30c9ffb95cc4f228cb1c0702c1b497d41175 # TITLE: The Impact Of Prison Displacement On Apartment Sale Price (A Case Study For Yeongdengpo Old Prison, Seoul) # YEAR: 2019.0 VENUE: International Journal of Engineering, Technology and Natural Sciences DOI: 10.46923/ijets.v1i1.13 # AUTHORS: Chul Sohn; Jeki Trimarstuti # PAGES: 7 CANDIDATE TABLE PAGES (1-based): [] # ABSTRACT: Locally unwanted land uses (LULUs) impact differently over time. Prison is one of the LULUs that may influence nearby real estate prices. Yeongdengpo Old Prison is located at the center of Seoul, the capital city of South Korea. After the fast urbanization of Seoul, nowadays that area is covered by apartments with more than 10 stories. Therefore, city planners of Seoul designed a new prison location outside the Seoul city. We assessed the apartment prices before the rumor of prison relocation, during the rumor stage, after the public announcement and after the relocation happens. We used average price of apartment sale in 2000, constant price of apartment sales from 2006 to 2012 and the nominal price and transaction prices of apartments from April 2013 to June 2013 for GIS analysis to determine distance effect of the prison within 500m. We used hedonic regression model to test the effects of area, age, unit, and distance from prison of apartments to its prices. The effect of relocation was not big enough compare to the first announcement of the relocation. Therefore, the distance premium mostly effected by the first public announcement of the relocation and the effect gradually diminished until the relocation happen. ===== PAGE 1 (score 16, numeric-paren 0, table-words 0, var-words 16) ===== International Journal of Engineering, Technology and Natural Sciences 1 Abstract— Locally unwanted land uses (LULUs) impact differently over time. Prison is one of the LULUs that may influence nearby real estate prices. Yeongdengpo Old Prison is located at the center of Seoul, the capital city of South Korea. After the fast urbanization of Seoul, nowadays that area is covered by apartments with more than 10 stories. Therefore, city planners of Seoul designed a new prison location outside the Seoul city. We assessed the apartment prices before the rumor of prison relocation, during the rumor stage, after the public announcement and after the relocation happens. We used average price of apartment sale in 2000, constant price of apartment sales from 2006 to 2012 and the nominal price and transaction prices of apartments from April 2013 to June 2013 for GIS analysis to determine distance effect of the prison within 500m. We used hedonic regression model to test the effects of area, age, unit, and distance from prison of apartments to its prices. The effect of relocation was not big enough compare to the first announcement of the relocation. Therefore, the distance premium mostly effected by the first public announcement of the relocation and the effect gradually diminished until the relocation happen. Index Terms— displacement of the old prison, apartment price, location, hedonic price method. I. INTRODUCTION Prison is often mentioned as one of the most reviled lands uses besides that of waste repositories, power lines, airports, highways, and mega–shopping complexes of which were defined as Locally Unwanted Land Use (LULUs) by urban planner Frank Popper during the early 1980s [1]. LULUs itself has been widely determined as it related to NIMBY (Not In My Back Yard)'s definition that usually confront local governments with regularity. There are even many examples of LULUs, but there is no definitive list of LULUs, as LULUs are always contextually defined. In other words, LULUs refer to land use that might be perfectly acceptable in one context but could cause some harsh reactions from neighbors in another context [2]. An adverse public perception (stigma) of property values could affect the economy extremely regarding price Manuscript received March 14, 2019. Jeki Trimarstuti. Author is with Department of Regional Development, Gangneung-Wonju National University, Gangneung, South Korea (Master Degree) and now Department of Urban and Regional Planning, University Technology of Yogyakarta, Yogyakarta, Indonesia (e-mail: jeki.trimastuti@uty.ac.id). Chul Sohn. Author is with Department of Regional Development, Gangneung-Wonju National University, expertise in Geographic Information System and a researcher at High Impact Weather Research Centre (HIWRC) at South Korea’s Gangneung-Wonju National University. (e-mail: csohn@gwnu.ac.kr). fluctuations in the housing market. There are some previous studies concerning the economic effect in property values related to NIMBYs and LULUs location such as nuclear power plants, high voltage power lines, oil, and natural gas facilities, hazardous and non-hazardous disposal sites, airports, subway lines, and others [3]; [4]; [5]; [6]; [7]; [8]; [9]. Nevertheless, prison as a part of the Locally Unwanted Land Uses (LULUs) has still not been widely discussed in so many articles. However, since the cause and impact of the prison existence are complex and problematic, recognizing the complexity of prison as one of the LULUs phenomena is essential in understanding and responding to NIMBY concerns, especially as it relates to property values issue. This research analyzes how the proximity to old prisons have a significant impact on apartment prices. This hypothesized has also strengthened by the neighborhood views due to the displacement announcement where communities were victorious in influencing the apartment price impact. II. LITERATURE REVIEW A. Locagically Undesirable Land Uses (LULUs) as an Issue Locally Undesirable Land Uses (LULUs) was introduced by Rutgers and Princeton University Urban Planning Professor Frank J. Popper in his paper, titled "Siting LULUs", as it published in Planning Magazine. LULUs include facilities that may be socially desirable, obviously needed or legally required but nobody wants in his or her backyard. In most often cases that have been found, LULUs presence has brought much more negative impacts than the positive ones. According to Sandman [10], besides that of the environmental and health risks that emerged in many of LULUs cases, there are also other concerns that relate to the decline of property values, the inability of the community to keep out other undesirable land uses once one has been displaced, the decline in quality of life because of noise, truck traffic, odor and the like, the decline in the image of the community, the overburdening of community services and community budgets, and the aesthetically objectionable quality of the facility. In other words, the impact of LULUs has widely influenced not only on the community environment or social problem but also relates to economic issues as well. There exist previous studies concerning the economic effect in property values related to NIMBYs and LULUs location such as nuclear power plants, high voltage power lines, oil and natural gas facilities, hazardous and non-hazardous disposal sites, airports, subway lines, and others [3]; [4]; [5]; [6]; [7]; The Impact of Prison Displacement on Apartment Sale Price (A Case Study for Yeongdengpo Old Prison, Seoul) Chul Sohn1 and Jeki Trimarstuti1,2 1 Gangneung-Wonju National University, Gangwon-Do, South Korea 2 University Technology of Yogyakarta, Yogyakarta, Indonesia