1# RECORD f39f30c9ffb95cc4f228cb1c0702c1b497d411752# TITLE: The Impact Of Prison Displacement On Apartment Sale Price (A Case Study For Yeongdengpo Old Prison, Seoul)3# YEAR: 2019.0 VENUE: International Journal of Engineering, Technology and Natural Sciences DOI: 10.46923/ijets.v1i1.134# AUTHORS: Chul Sohn; Jeki Trimarstuti5# PAGES: 7 CANDIDATE TABLE PAGES (1-based): []6# 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.789===== PAGE 1 (score 16, numeric-paren 0, table-words 0, var-words 16) =====1011International Journal of Engineering, Technology and Natural Sciences 12 13 14 15 16 17 181 19 20 21Abstract— Locally unwanted land uses (LULUs) impact 22differently over time. Prison is one of the LULUs that may 23influence nearby real estate prices. Yeongdengpo Old Prison is 24located at the center of Seoul, the capital city of South Korea. 25After the fast urbanization of Seoul, nowadays that area is 26covered by apartments with more than 10 stories. Therefore, 27city planners of Seoul designed a new prison location outside 28the Seoul city. We assessed the apartment prices before the 29rumor of prison relocation, during the rumor stage, after the 30public announcement and after the relocation happens. We 31used average price of apartment sale in 2000, constant price of 32apartment sales from 2006 to 2012 and the nominal price and 33transaction prices of apartments from April 2013 to June 2013 34for GIS analysis to determine distance effect of the prison 35within 500m. We used hedonic regression model to test the 36effects of area, age, unit, and distance from prison of 37apartments to its prices. The effect of relocation was not big 38enough compare to the first announcement of the relocation. 39Therefore, the distance premium mostly effected by the first 40public announcement of the relocation and the effect gradually 41diminished until the relocation happen. 42Index Terms— displacement of the old prison, apartment price, 43location, hedonic price method. 44 45I. INTRODUCTION 46Prison is often mentioned as one of the most reviled lands 47uses besides that of waste repositories, power lines, airports, 48highways, and mega–shopping complexes of which were 49defined as Locally Unwanted Land Use (LULUs) by urban 50planner Frank Popper during the early 1980s [1]. LULUs 51itself has been widely determined as it related to NIMBY (Not 52In My Back Yard)'s definition that usually confront local 53governments with regularity. There are even many examples 54of LULUs, but there is no definitive list of LULUs, as LULUs 55are always contextually defined. In other words, LULUs refer 56to land use that might be perfectly acceptable in one context 57but could cause some harsh reactions from neighbors in 58another context [2]. 59An adverse public perception (stigma) of property values 60could affect the economy extremely regarding price 61 62Manuscript received March 14, 2019. 63Jeki Trimarstuti. Author is with Department of Regional Development, 64Gangneung-Wonju National University, Gangneung, South Korea (Master 65Degree) and now Department of Urban and Regional Planning, University 66Technology 67of 68Yogyakarta, 69Yogyakarta, 70Indonesia 71(e-mail: 72jeki.trimastuti@uty.ac.id). 73Chul Sohn. Author is with Department of Regional Development, 74Gangneung-Wonju 75National 76University, 77expertise 78in 79Geographic 80Information System and a researcher at High Impact Weather Research 81Centre (HIWRC) at South Korea’s Gangneung-Wonju National University. 82(e-mail: csohn@gwnu.ac.kr). 83fluctuations in the housing market. There are some previous 84studies concerning the economic effect in property values 85related to NIMBYs and LULUs location such as nuclear 86power plants, high voltage power lines, oil, and natural gas 87facilities, hazardous and non-hazardous disposal sites, 88airports, subway lines, and others [3]; [4]; [5]; [6]; [7]; [8]; 89[9]. Nevertheless, prison as a part of the Locally Unwanted 90Land Uses (LULUs) has still not been widely discussed in so 91many articles. However, since the cause and impact of the 92prison existence are complex and problematic, recognizing 93the complexity of prison as one of the LULUs phenomena is 94essential in understanding and responding to NIMBY 95concerns, especially as it relates to property values issue. 96This research analyzes how the proximity to old prisons 97have a significant impact on apartment prices. This 98hypothesized has also strengthened by the neighborhood 99views due to the displacement announcement where 100communities were victorious in influencing the apartment 101price impact. 102II. LITERATURE REVIEW 103A. Locagically Undesirable Land Uses (LULUs) as an Issue 104Locally Undesirable Land Uses (LULUs) was introduced 105by Rutgers and Princeton University Urban Planning 106Professor Frank J. Popper in his paper, titled "Siting LULUs", 107as it published in Planning Magazine. LULUs include 108facilities that may be socially desirable, obviously needed or 109legally required but nobody wants in his or her backyard. In 110most often cases that have been found, LULUs presence has 111brought much more negative impacts than the positive ones. 112According to Sandman [10], besides that of the environmental 113and health risks that emerged in many of LULUs cases, there 114are also other concerns that relate to the decline of property 115values, the inability of the community to keep out other 116undesirable land uses once one has been displaced, the 117decline in quality of life because of noise, truck traffic, odor 118and the like, the decline in the image of the community, the 119overburdening of community services and community 120budgets, and the aesthetically objectionable quality of the 121facility. In other words, the impact of LULUs has widely 122influenced not only on the community environment or social 123problem but also relates to economic issues as well. There 124exist previous studies concerning the economic effect in 125property values related to NIMBYs and LULUs location such 126as nuclear power plants, high voltage power lines, oil and 127natural gas facilities, hazardous and non-hazardous disposal 128sites, airports, subway lines, and others [3]; [4]; [5]; [6]; [7]; 129The Impact of Prison Displacement on Apartment Sale 130Price (A Case Study for Yeongdengpo Old Prison, Seoul) 131Chul Sohn1 and Jeki Trimarstuti1,2 1321 Gangneung-Wonju National University, Gangwon-Do, South Korea 1332 University Technology of Yogyakarta, Yogyakarta, Indonesia 134