Price of Resale Condominiums on Online Platform Listed by Individual Sellers in Bangkok Metropolitan Region during 2016-2020

Abstract

Resale condominium market is considered as importance in terms of value creation well as investment to Thai economy. Moreover, resale condominium price is one of the indicators that can reflect both supplies and demands of the condominium market. Therefore, this research focuses on price changes of the resale condominium between 2016 and 2020 in Bangkok Metropolitan region listed on online platform. The study also includes characteristics of sold condominiums and factors that affect the price. The data of sold condominiums was collected by Zmyhome website’s database of 4,168 transactions between October 2015 and April 2021 and was analyzed using correlation and regression analysis which then illustrated in form of price index.

The result revealed that (1) the majority of sold condominium type were 1 bedroom and studio in lower to mid range price segmentation as a proportion of 65.6% and 21.3% respectively; (2) key factors that affected resale condominium price ranked from most positively included unit floor level, unit area (sq.m.) and 1 bedroom type and those that affected ranked from most negatively included property age, government housing, distance to train (BTS/MRT), distance to expressway, total units and location dummy variables; (3) facilities that positively affected the price included dining room, futsal field and sauna steam room and those that negatively affected the price included retails, salon and keycard system; (4) resale condominium price index in general had average 18% lower price level than countrywide condominium price index by Bank of Thailand. It was also found that the indices of higher price group segmentation were more volatile than those of the lower price group and that indices of condominiums locate in Central Business District, new economic zone and industrial estate also appeared to be more volatile than those locate in other districts.

This study showed the importance of understanding price and factors which affected resale condominium price for individual sellers, real estate entrepreneurs and government that were able to perceive completed overview of the real estate market. For it will be beneficial to monitoring and planning investment strategies and to issuing effective policies related to the real estate and resale housing market.