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In this study, the hedonic price model was used to analyze the factors affecting the price of small and medium sized buildings. In addition, it studied how the over floor area ratio reflected in the wake of the changes in the legal affects the price of small and medium sized buildings.
According to the analysis results, the factors affecting the increase in the price per unit area of sm all and medium sized buildings were corners status, publicly notified individual land price, parking lots, rent, loan amount and over floor area ratio.
On the other hand, the factors affecting the decrease in the price per unit area of sm all and medium sized buildings were distance from subway stations, land area, elapsed years, bank of korea base rate and unused floor area ratio.
The over floor area ratio, which we have seen closely in this study, has a positive effect on the unit price of small and medium sized buildings. These results are as follows. First, the larger the over floor area ratio, the larger the rentable area, and thus the rent revenue increases and the price of small and medium size buildings increases. Second, more land area is needed to acquire the same gross area as the small and medium sized building that has the over floor ratio under the current legislation in the same use area, the building with the over floor area ratio acts as a premium for the increased floor space can be.
In contrast, small and medium sized buildings with unused floor area ratio have low prices because they have the potential to increase the floor area in the future, but have a smaller leased area now. Furthermore, in order to realize unused floor area ratio, it also has to bear both the cost and time of the construction and the risks of development.

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