International Journal of Built Environment and Sustainability (Sep 2020)
Property Price Attributable to Subdivision Neighbourhood Designs: Hedonic Pricing Model Approach in Bangkok Metropolitan Region, Thailand
Abstract
The purpose of this paper is to determine whetherthe property price is caused by the subdivision neighbourhood designs intheBangkok Metropolitan Region (BMR), Thailand. Atotal price model is developed during the analysisprocess. The model provides a greater understanding ofthesignificanceof thesubdivision neighbourhood designs that arerelated to property pricing. This paper is based on data collection from50 subdivisions across the BMR area. The hedonic pricing approach is used to develop the models. The semi-log models are developed on 1,182 samples of property sales locatedin eightzones oftheBMR. The independent variables include general bundles of property characteristics andthesubdivision neighbourhood design items. There are twomajor findings in this study. First, this study providesasuitable property price model forsubdivision development intheBMR. The model presents the high level of R2at 0.948. The model confirms that all classical hedonic variables are statistically significant to the property price. Furthermore, the additional alternative variables for thesubdivision neighbourhood design items can improve the level of variation explained by the model. Second, this study finds that the average property price attributable tothesubdivision neighbourhood design is about 20.24 % of the total property price.The components ofthesubdivision neighbourhood design items consist of project characteristics, recreation features, social facilities, and transportation system design. The model should support knowledge of the design’s impact on theproperty price fortheGovernment or policy makerson making appropriate policiesfor urban and environmental management. The model provides a guideline for developers on appropriate property selling-pricesfor subdivision development intheBMR. The new understanding oftheproperty price attributable to the subdivision neighbourhood designs support suitable decision making on new subdivision development in the BMR.
Keywords