Does district heating affect residential property prices? Case study of an urban area in South Korea

This article investigates whether the residential heating method affects property prices in an urban area of South Korea. Sales data for 1760 apartments in Seocho District, Seoul, the country's capital, are employed. The property price equation is estimated, including the heating method as one attribute. The gap between the price of properties with a district heating system (DHS) and those with other heating methods, such as an individual heating system or central heating system, accounted for about 21.7% of apartment prices. Specifically, apartments with a DHS were more expensive than apartments with other heating methods.