Factors Affecting Purchase Decisions of Leasehold Condominium: A Case Study of Triple Y Residence

Abstract

            Bangkok has been developed in a centralized way which resulted in the higher numbers of vertical residential buildings, office buildings and large shopping malls along the mass rapid transit routes at the heart of the city. Accordingly, the ratio of land prices to total project development cost significantly increased which led to a higher overall value. Moreover, the contrasting trend between the declining availability of lands with Proprietary rights and the increasing demand for urban accommodation also supported the surge in the overall value. Hence, the developments for long-term leasehold condominium projects became common, especially in the popular urban area. Most of the developments were vertical residential buildings with a 30-year lease term. Those projects were built on state-owned or private-held lands or lands under the Crown Property Bureau. The price of leasehold property was likely to be approximately 30-40% lower than the selling price for other freehold residents in the same area. A case study of the Triple Y Residence project was newly completed in 2019 and located on the lands under Property Management of Chulalongkorn University. The location of the project was full of various condominiums with an intense Freehold Condominium competition.

            The objective of this study is to identify the factors affecting purchase decisions of leasehold condominiums on an individual basis and also the relationships between variables as well as to analyze the prioritization among the purchase factors. The methods used were 1) literature review 2) 75 questionnaires from the Triple Y Residence buyers amounting to 250 units and 3) analysis, evaluation, conclusion, and recommendation. The results of this study showed that buyers or co-buyers of Triple Y Residence were mostly women, with 64% in total. The most common age of the representative sample was ranging from 46-55 years old, accounting for 42.7% in total. 60% of the sample were married while 62.7% of the sample were parents. Moreover, the most significant people influencing the purchase decisions were the buyers’ children at 42.7%. The main purpose of the purchase was for personal accommodating at 84%. However, the factors that affecting Triple Y Condominium purchase decision were buyer’s status, people influencing the purchase and marketing mix regarding price, place, and promotion.