| Title |
Deriving Analysis Criteria of Earnings Rate for Private Participation and Public Housing Construction Types |
| DOI |
https://doi.org/10.5659/JAIK.2022.38.6.229 |
| Keywords |
private participation type public housing construction; earnings rate; construction cost; land cost; loss of unsold housing |
| Abstract |
Public institutions invest in land costs while construction companies invest in construction costs; the profit gained from sales is then
distributed among them based on an investment ratio for private participation regarding public housing and construction types. However, when
profit distribution takes place the factors that impact the earnings rate are not considered. This study derives analysis criteria for the earnings
rate of construction and land costs, financial loss from unsold housing, and the profit distribution difference between private participation type
and public housing type construction. Upon analysis of earnings rate changes without criteria being considered, the earnings rate did not
reflect the actual cost of a project; it was observed that fair profit distribution was difficult. Additionally, when the construction costs for
basic types were applied in cities with high land costs and national concerns, the risk of unsold housing decreased while the earnings rate
increased. Thus, a contract type project is a potential method to increase the earnings rate for public institutions in a city. The analysis
criteria of the earnings rate proposed in this study can be used to further establish profit distribution criteria between public institutions and
construction companies based on the city and project type. |