The Analysis of Apartment Construction Cost Disclosure Effect: Using Synthetic Control Method

This study analyzed whether the disclosure of apartment construction cost actually decreased apartment prices using the synthetic control method (SCM) while taking into account the sudden disclosure of apartment construction cost of Segok 2 District 4 (Gangnam Hanyang Sujain) by SH Corporation in February 2022 as a natural experiment. In the analysis, the treatment group was Set to the 85㎡ exclusive private area type of the Gangnam Hanyang Sujain, and the control group was Set to the apartment complexes located within a radius of 2km (#17), 3km (#33), 4km (#46), and 2-4km (#30) centered on the Gangnam Hanyang Sujaini, respectively. The results of the analysis show that apartment prices do not decrease in response to the disclosure of construction cost, in cases where the apartment market price was already established. This result is consistent with various robustness checks. This suggests that the policy of disclosing construction cost to stabilize apartment prices may not align with its purpose.