|
The residential market in Taiwan has the serious aging problem, and 2021 Kaohsiung Building Fire, made the public pays more attention on potential safety issues in buildings. Utilizing data from the " Real Estate Transaction Information System " provided by the Ministry of the Interior, this study uses Difference-in-Differences (DID) and Hedonic Price Model to analyze buildings in former Kaohsiung City from October 2020 to October 2022, investigating the impacts of this incident on rental prices of old buildings. Empirical results indicate that after the incident, rental prices for old buildings without management organizations experienced a decline. Additionally, regarding housing characteristics, building age, floor, and area present significant negative effects on rental prices, while the floor squared and the number of parking spaces present significant positive effects on rental prices. This event also underscores the urgent need for the government to amend regulations related to old buildings, assist in establishing management organizations, and enhance public safety inspections of buildings. Addressing longstanding social issues is crucial to ensuring the housing right of vulnerable groups.
|