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

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.