A Study on Segmentation and Characteristics of Housing Submarkets in Busan

The decoupling of housing markets is caused in large part by a paradigm shift from a supplier-centric to a demand-centric one. Unique characteristics of housing such as durability, immovability and heterogeneity combined with segmentation of the housing market across a variety of spaces has exacerbated mismatches in supply and demand as well as deepened regional market differences. Special measures are needed in order to minimize these negative effects and to find effective policy responses. The current study confirms that the housing market of Greater Busan is not large and monolithic but is actually composed of 6 housing sub-markets. The study also examines factors that influence supply and demand in each of these housing sub-markets. The limits of "One-size-fits-all", quantitative supply-oriented housing market policy can be overcome through research into housing sub-markets, which suggests that qualitative measures like housing inventory management can help create differentiated policies tailored to each regional market. Furthermore, housing policy should be connected to the policies and development plans of cities and local governments while regions with common characteristics should be formally classified for the establishment of strategic plans.