The Influence of Rapid Transit Systems on Condominium Prices in Bangkok : A Hedonic price model approach

Abstract: Rapid transit systems often create city developments and raise the property values. Basically, residential property price is characterised by number of characteristics including the transportations attributes. Empirical studies have drawn impacts of transportation in different ways. This thesis studies the hedonic price model to better understand the influence of mass rapid transit systems on the prices of condominium in Bangkok. The research question is "How the accessibility of rapid transit system affects the price of condominium in Bangkok?" The thesis explains the relationship between condominium prices and accessibility to mass rapid transit systems, as well as other influences, using hedonic price model. The research conducts cross-sectional study approach that uses the data with high level of flexibility at a particular point in time. Five models have been used in this thesis including the entire area model, models of proximity to rapid transit station, and sub-area models. Consequently evidences from the entire area model indicate that proximity to the rapid transit systems has a significant negative effect on condominium prices. Besides, the research also points out number of important characteristics that influence the prices of condominium including distance to main street and public facilities in the area. However, the clustered models show that there is no significant effect of proximity to mass rapid transits on condominium prices. The thesis has raised the knowledge and gained better understanding of the hedonic price model especially its application to the property market. The findings of this thesis can lead to an analysis of property values as well as other price model in other field of study.