Determinants Influencing the Price of Second-Hand Condominiums in Bangkok’s Central Business District, Thailand

Pornraht Pongprasert, Thanatat Chantapattarangkul

Abstract

This study aims to analyze the factors affecting the prices of second-hand condominiums in Bangkok’s central business district (CBD). After the COVID pandemic, new residential properties in urban areas of Bangkok have become more complicated to sell because of declining purchasing power among customers, with many new buyers turning to second-hand properties. In 2023, the sales growth of second-hand houses and condominiums in Bangkok increased by up to 2.6 trillion baht compared to 2022. Notably, second-hand condominium sales in Bangkok grew by approximately 36.7%. Additionally, the younger generations prefer to live in urban areas near public transport and their workplaces. In this study, 400 second-hand condominiums in Bangkok's CBD opened between 2018 and 2023 were surveyed, and data were collected. Twenty-four independent variables related to pricing factors, including locational and structural attributes and neighborhood environments, were examined. The hedonic price model investigated the factors influencing second-hand condominium prices. This study aims to highlight the importance of various physical attributes that affect the prices of second-hand residential properties and identify areas where the prices of second-hand condominiums have grown the most. The key outcomes of this research can guide public decision-making and provide insights for businesses involved in second-hand residential properties or related sectors. The results indicate that factors such as distance to urban rail transit stations, proximity to the nearest expressway, floor location, number of bedrooms, room size, availability of common areas, presence of furniture, parking facilities, EV chargers, and proximity to shopping centers and temples all influence the prices of second-hand condominiums in Bangkok's CBD.

 

Keywords: Second-hand condominium, Residential price, Central business district, Hedonic price model, Bangkok

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.64.12


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References


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