Accessibility and investment returns: evidence of yield compression in transit-oriented condominium markets in Bangkok, Thailand

Purpose This study aims to examine the relationship between accessibility and investment returns in transit-oriented condominium markets, focusing on rental yield as a key indicator of housing market performance. Previous studies have emphasized property price premiums associated with transit accessibility. Their impact on rental yield remains insufficiently understood. Design/methodology/approach A quantitative cross-sectional research design was adopted using a structured dataset of 300 condominium units located within an 800-meter radius of transit stations along three rail mass transit lines in the Bangkok Metropolitan Region, which was collected from five major real estate platforms in Thailand between June 2025 and December 2025. The analysis focuses on the mid-market segment, meaning properties with prices not exceeding THB 150,000 per square meter or USD 5,000 per square meter. Multiple regression analysis based on ordinary least squares with stepwise regression used for variable selection technique to identify significant locational and structural determinants of rental yield. It also serves as an explanatory tool to identify and interpret the relationships between rental yield and key housing market factors across different submarkets. Findings The results show that accessibility-related variables, both locational and structural, influence rental yields, including distance to transit stations, proximity to amenities, floor level and unit characteristics. However, the influence of key determinants varies across rail mass transit lines, highlighting spatial heterogeneity in housing market dynamics. Importantly, the findings provide evidence of yield compression, in which higher accessibility is associated with lower rental yields due to disproportionate increases in property values relative to rental income. Research limitations/implications The study is based on cross-sectional listing data and focuses on the mid-market segment within a specific urban context, which may limit the generalizability of the findings to higher-end properties. However, it provides useful insights into submarket-level housing dynamics and suggests that investment outcomes are shaped by local market conditions rather than uniform accessibility effects. Practical implications The findings have important implications for real estate investors and developers by highlighting the trade-off between accessibility and investment returns. Decision-making should consider not only location advantages but also their impact on rental yield performance. The presence of yield compression also has implications for housing affordability in transit-oriented development contexts. Social implications This research offers a new perspective on rental yields as a critical topic for understanding housing market dynamics and significantly explains the phenomenon of yield compression arising from the relationship between accessibility and investment returns. In practice, investors should be aware that convenience, such as a highly accessible location, may not always offer the best returns. However, the balance between property value and rental income in each area should be carefully considered. Originality/value This study contributes to the housing market literature by shifting the analytical focus from property prices to investment performance and by providing empirical evidence of yield compression and spatial variation in the determinants of rental yield within transit-oriented development contexts.