Abstract
This paper reports an analysis of the effects of financial assets on the rate of return in the office rental market of Seoul. Using the Vector Autoregressive (VAR) Model, Impulse Response Analysis (IRA) and Variance Decomposition (VD), this paper reveals that interest rates and housing prices have negative effects on the profitability of the office rental market over the short-term due to competition, while the economic growth rate has a positive effect. Profitability tends to be sensitive to changes in the interest rates over the short term and the growth rate of GDP in the long run.
JEL Classification: L850, R200, R330
