Determinants of New Condominium Prices near MRT Orange Line Stations: Case study of Estimating Housing Affordability in Bangkok, Thailand

Pornraht Pongprasert, Rungsee Benjaanunphong

Abstract

This research aims to analyze the factors influencing the pricing of condominium projects along the Mass Rapid Transit (MRT) Orange Line, an electric train expected to start operations in 2025. As the main heavy rail line connecting the Eastern Bangkok suburbs with the city’s New Central Business District (New CBD), the Orange Line has significant implications for urban development. To promote land development opportunities, Bangkok’s city plan has undergone changes along the Orange Line corridor, particularly on the Ramkhamhaeng Road, which is anticipated to drive up land prices.This study examines how condominium prices may fluctuate when various factors are considered, such as proximity to MRT stations, main roads, expressway access points, private facilities, operator reliability, and the cost of common areas. The research equips real estate developers with a comprehensive understanding of these determinants to guide project development and pricing strategies aligned with market conditions. Condominium buyers can leverage accurate pricing information to make informed decisions, while real estate investors can incorporate these insights into their investment strategies. Additionally, the Revenue Department could use the data to inform land tax policies. The hedonic price model was used to determine the factors influencing the prices of condominiums along the Orange Line. The research samples are 28 brand-new condominium properties that are located only one kilometer away from the MRT stations of the Orange Line, and most of them are new condominiums that were constructed in less than 5 years. A total of 17 factors, grouped into three categories—locational, physical, and neighborhood characteristics—were evaluated using regression analysis. The findings reveal that three key factors significantly impact the prices of condominium units: floor level, distance from the train station, and distance from department stores.


Keywords: Central Business District (CBD), Mass Rapid Transit (MRT) Orange Line, condominium prices, housing affordability, Bangkok.

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.64.29


Full Text:

PDF


References


ANANTSUKSOMSRI, S., & TONTISIRIN, N. (2015). The Impacts of Mass Transit Improvement on Residential Land Development Values: Evidence from the Bangkok Metropolitan Region. Urban Policy and Research, 33(2), 195-216. https://doi.org/10.1080/08111146.2014.982791

Bangkok Metropolitan Administration (BMA). (2006). The Bangkok comprehensive plan 2006. Retrieved From https://www.bma-cpd.go.th/files/001/DefineCompre54.pdf

Bangkok Metropolitan Administration (BMA). (2018). Trends in housing expansion in Bangkok and surrounding areas, 2013 – 2017. Retrieved From https://webportal.bangkok.go.th/public/ user_files_editor/354/aboutcpud/study%20report/2562/2.pdf

BIBLE, D. S., & HSIEH, C. (2011). Gated Communities and Residential Property Values. The Appraisal Journal, 69(2), 140-145. https://www.proquest.com/openview/2622b6751c358be51b3a8830b6ff8aa3/1?pq-origsite=gscholar&cbl=35147.

BOARNET, G. M., & CRANE, R. (1995). Public Finance and Transit-Oriented Planning: New Evidence from Southern California. Working Paper in The University of California Transportation Center. UCTC. No. 304. Retrieved from https://escholarship.org/content/qt4v95x0 tm/qt4v95x0tm.p df

CALTHORPE, P. (1993). The next American metropolis ecology, community and the American Dream. New York: Princeton Architectural Press.

CHATTERJEE S., & SIMONOFF J. S. (2013). Handbook of regression analysis. New York, NY: Wiley.

DES ROSIERS, F., LAGANA, A., THÉRIAULT, M., & BEAUDOIN, M. (1996). Shopping Centres and House Values: An Empirical Investigation. Journal of Property Valuation Investment, 14(4), 41-62. https://doi.org/10.1108/14635789610153461.

DURBIN, J., & WATSON, G. S. (1951). Testing for Serial Correlation in Least Squares Regression. II. Biometrika, 38, 159-177. http://doi.org/10.2307/2332325

FREEMAN, A. M. (1979). Hedonic Prices, Property Values and Measuring Environmental Benefits: A Survey of the Issues. The Scandinavian Journal of Economics, 81(2), 154-173. https://doi.org/10.2307/3439957.

HUH, S., & KWAK, S.-J. (1997). The Choice of Functional Form and Variables in the Hedonic Price Model in Seoul. Urban Studies, 34(7), 989-998. https://doi:https://doi.org/10.1080/0042098975691

KULKOSA, T. (2016). A Hedonic Pricing Analysis: Evaluating Prices of Bangkok’s New Condominiums Along Bts Skytrain. (Master), Thammasat University. Retrieved from http://ethesisarchive.library.tu.ac.th/thesis/ 2016/TU_2016_5702042077_5533_4047.pdf

LAOPAIROJ, C. (2012). Factors Affecting Price of Condominiums in Bangkok. (Master) Thammasat University. Retrieved from http://digi.library.tu.ac.th/thesis/ec/1507/titleappendices.pdf

LIN, J.-J., & HWANG, C.-H. (2003). The Analysis of Property Prices before and after Taipei MRT Opening. Journal of the Eastern Asia Society for Transportation Studies, 5, 2817-2830.

National Statistical Office (NSO). (2023). The number of populations in Bangkok in 2023. Retrieved from https://www.nso.go.th/ nsoweb/

PHAOPHOO, A. (2015). The impact of the mass transit transportation development on land values alongside the extended MRTA Green Line (Bearing – Samutprakarn). Retrieved from https://ethesisarchive.library.tu.ac.th/thesis/2015/TU_2015_5704010163_4725_2863.pdf

PONGPRASERT, P. & KUBOTA, H. (2017a). Switching from motorcycle taxi to walking: A case study of transit station access in Bangkok, Thailand, IATSS Research, 41 (4), 182-190. https://doi.org/10.1016/j.iatssr. 2017.03.003

PONGPRASERT, P., & KUBOTA, H. (2017b). Why TOD residential still use car? Understanding the factors affecting the automobile ownership and use of residents living near transit stations of Bangkok. Urban and Regional Planning Review, 4, 231-250. https://doi.org/10.14398/ urpr.4.231

PONGPRASERT, P., & KUBOTA, H. (2018). TOD residents’ attitude toward walking to transit station: a case study of transit-oriented developments (TODs) in Bangkok, Thailand. Journal of Modern Transport, 27(1), 39-51. https://doi.org/10.1007/s40534-018-0170-1

PONGPRASERT, P. (2022). Determinants of Luxurious Condominium Prices in Bangkok CBD: A Case study of Encouraging Housing Affordability in Bangkok, Thailand. International Review for Spatial Planning and Sustainable Development, 10(1), 167-182, http://dx.doi.org/10.14246/irspsd.10.1_167

STRINGHAM, M. (1982). Travel Behavior Associated with Land Uses Adjacent to Rapid Transit Stations. ITE Journal, 52, 16-18. http://worldcat.org/oclc/614107147

SANTIYA, E. (2014). Price Determinant Factors of Condominium Real Estate in Pattaya City. Faculty of Economic, Kasetsat University. Retrieved from https://kukr.lib.ku.ac.th/kukr_es/index.php/BKN/search_detail/result/310077

THAMRONGSRISOOK, C. (2011). The Influence of Rapid Transit Systems on Condominium Prices in Bangkok: A Hedonic price model approach. (Master) KTH Architecture and Built Environment. Retrieved from http://www.diva-portal.org/smash/get/diva2:444683/fulltext01.pdf


Refbacks

  • There are currently no refbacks.