DOCSLIB.ORG

The Influence of Rapid Transit Systems on Condominium Prices in Bangkok

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Influence of Rapid Transit Systems on Condominium Prices in Bangkok Department of Real Estate and Construction Management Thesis no. 105 Division of Building and Real Estate Economics Master of Science, 30 credits The Influence of Rapid Transit Systems on Condominium Prices in Bangkok A Hedonic price model approach Author: Supervisor: Chuti Thamrongsrisook Hans Lind Stockholm 2011 Master of Science Thesis Title : The Influence of Rapid Transit Systems on Condominium Prices in Bangkok: A Hedonic price model approach Author: Chuti Thamrongsrisook Department: Department of Real Estate and Construction Management Master Thesis number: 105 Supervisor: Prof. Hans Lind Keywords: Hedonic price model, Condominium, Bangkok, Rapid transit systems ABSTRACT Rapid transit systems often create city developments and raise the property values. Basically, residential property price is characterised by number of characteristics including the transportations attributes. Empirical studies have drawn impacts of transportation in different ways. This thesis studies the hedonic price model to better understand the influence of mass rapid transit systems on the prices of condominium in Bangkok. The research question is “How the accessibility of rapid transit system affects the price of condominium in Bangkok?” The thesis explains the relationship between condominium prices and accessibility to mass rapid transit systems, as well as other influences, using hedonic price model. The research conducts cross-sectional study approach that uses the data with high level of flexibility at a particular point in time. Five models have been used in this thesis including the entire area model, models of proximity to rapid transit station, and sub-area models. Consequently evidences from the entire area model indicate that proximity to the rapid transit systems has a significant negative effect on condominium prices. Besides, the research also points out number of important characteristics that influence the prices of condominium including distance to main street and public facilities in the area. However, the clustered models show that there is no significant effect of proximity to mass rapid transits on condominium prices. The thesis has raised the knowledge and gained better understanding of the hedonic price model especially its application to the property market. The findings of this thesis can lead to an analysis of property values as well as other price model in other field of study. i ACKNOWLEDGEMENTS I wish to thank all those who supported me throughout my thesis, including my friends and family. I would like to express my sincere gratitude to Prof. Hans Lind, my supervisor, for his supervision, guidance and support and to KTH, my university, for providing superb facilities and services all through the duration of my study. ii LIST OF CONTENTS CHAPTER 1 INTRODUCTION .................................................................................................. 1 Background and motivation ............................................................................................... 1 Research question ............................................................................................................. 2 Aims and objective ............................................................................................................ 2 Limitation .......................................................................................................................... 3 Thesis overview ................................................................................................................. 3 CHAPTER 2 LITERATURE REVIEW .......................................................................................... 4 Hedonic price model .......................................................................................................... 4 Box-Cox transformation ..................................................................................................... 9 Previous studies............................................................................................................... 10 CHAPTER 3 METHODOLOGY ............................................................................................... 16 Research approach and stages ......................................................................................... 16 Theoretical foundation and conceptual framework ......................................................... 17 Research design ............................................................................................................... 17 Data collection................................................................................................................. 18 Data processing and analysis ........................................................................................... 19 CHAPTER 4 DESCRIPTION OF THE AREA .............................................................................. 20 Bangkok facts and information ........................................................................................ 20 Transportation ................................................................................................................. 21 Residential property market ............................................................................................ 23 The area of study ............................................................................................................. 25 CHAPTER 5 MODEL AND REGRESSION ................................................................................ 28 Data analysis ................................................................................................................... 28 Model summary .............................................................................................................. 33 Regression analysis .......................................................................................................... 34 CHAPTER 6 RESULTS SUMMARY ......................................................................................... 41 Results from hedonic price models .................................................................................. 41 CHAPTER 7 DISCUSSION AND CONCLUSIONS ..................................................................... 43 Contributions................................................................................................................... 43 Further work ................................................................................................................... 43 Conclusions ..................................................................................................................... 44 iii REFERENCES ....................................................................................................................... 46 Appendix A: Bangkok comprehensive land use plan 2006 ................................................. 50 Appendix B: Condominium dataset .................................................................................... 51 Appendix B: Regression results .......................................................................................... 54 The entire area ................................................................................................................ 54 Clustered by proximity to the nearest station .................................................................. 56 Clustered by sub-areas .................................................................................................... 59 iv LIST OF FIGURES Figure 3-1 Conceptual framework ....................................................................................... 17 Figure 4-1 Bangkok’s mass rapid transit system .................................................................. 22 Figure 4-2 BTS and MRT passenger journey per annum ....................................................... 23 Figure 4-3 Registered residential property by type .............................................................. 24 Figure 4-4 The area of study ................................................................................................ 26 LIST OF TABLES Table 2-1 Summary of previous studies ............................................................................... 14 Table 5-1 Variable definition and classification .................................................................... 29 Table 5-2 Data group ........................................................................................................... 32 Table 5-3 Descriptive statistics ............................................................................................ 33 Table 5-4 Regression results of the entire area data ............................................................ 36 Table 5-5 Results from enter method regresion analysis ..................................................... 38 Table 5-6 Results from backward method regresion analysis by proximity to RTS ............... 38 Table 5-7 Results from enter method regresion analysis by sub-areas................................. 39 Table 5-8 Results from backward method regresion analysis by sub-areas .......................... 40 Table 6-1 Results summary for hedonic models .................................................................. 42 LIST OF ABBREVIATIONS BMA Bangkok Metropolitan Administrative BMR Bangkok Metropolitan Region BTS Bangkok Mass Transit System CBD Central Business District MRT Mass Rapid Transit RTS Rapid Transit System SARL Suvarnabhumi Airport Rail Link v CHAPTER 1 INTRODUCTION
Load more

Recommended publications
  • BTSGIF Offring Memorandum
    IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the offering memorandum (the “offering memorandum”) attached to this e-mail. You are advised to read this disclaimer carefully before reading, accessing or making any other use of the attached. In accessing the attached, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from us as a result of such access. Confirmation of Your Representation: You have accessed the attached document on the basis that you have confirmed your representation to Morgan Stanley & Co. International plc, UBS AG, Hong Kong Branch and Phatra Securities Public Company Limited (the “Underwriters”) that (1) either (i) you are not a resident of the United States nor a U.S. Person, as defined in Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), nor acting on behalf of a U.S. Person, as defined in Regulation S under the Securities Act, and, to the extent you purchase the securities described in the attached offering memorandum, you will be doing so pursuant to Regulation S under the Securities Act, OR (ii) you are acting on behalf of, or you are, both a qualified institutional buyer, as defined in Rule 144A under the Securities Act, and a qualified purchaser within the meaning of Section 2(a)(51) of the U.S. Investment Company Act of 1940, as amended (the “Investment Company Act”), (2) you are not resident in Thailand, AND (3) you consent to delivery of the attached offering memorandum and any amendments or supplements thereto by electronic transmission.
    [Show full text]
  • Thailand MRTA Initial System Project (Blue Line) I–V
    Thailand MRTA Initial System Project (Blue Line) I–V External Evaluator: Hiroyasu Otsu, Graduate School of Kyoto University Field Survey: August 2007 – March 2008 1. Project Profile and Japan’s ODA Loan Myミャンマーanmar ラオスLaos Thailandタイ Banバンコクgkok ◎ カンボジアCambodia プロジェクトサイトProject Site Map of the project area Bangkok Subway (MRT Blue Line) 1.1 Background Accompanying the rapid economic development in Bangkok starting in the 1990s, regular traffic congestion and the associated air pollution became evident in the urban area. The Thai government drew up the Bangkok Mass Transit Master Plan (produced by the Office of the Commission for the Management of Road Traffic (OCMRT) and hereinafter referred to as the “master plan”) in 1995 based on the 7th National Economic and Social Development Plan (1992–1996) for the purpose of developing a mass transit network and also for developing a network of ordinary roads and expressways to achieve steady economic growth, together with resolving the above-mentioned traffic congestion and air pollution. Furthermore, the development of the mass transit network proposed in the master plan is also specified in the subsequent 8th National Economic and Social Development Plan (1997–2000), and it is positioned as an extremely important national project in Thailand. The plan for the Bangkok mass transit system, part of the master plan, involves the construction of five lines that will radiate out and join the Bangkok Metropolitan Area (BMA) with the Bangkok Metropolitan Region (BMR)1 together with creating a network 1 The Bangkok Metropolitan Region includes Bangkok, which is a special administrative area, and the surrounding five provinces of Samut Prakan, Pathum Thani, Samut Sakhon, Nakhon Pathom, and Nonthaburi.
    [Show full text]
  • Special Assistance for Project Implementation for Bangkok Mass Transit Development Project in Thailand
    MASS RAPID TRANSIT AUTHORITY THAILAND SPECIAL ASSISTANCE FOR PROJECT IMPLEMENTATION FOR BANGKOK MASS TRANSIT DEVELOPMENT PROJECT IN THAILAND FINAL REPORT SEPTEMBER 2010 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS, CO., LTD. EID JR 10-159 MASS RAPID TRANSIT AUTHORITY THAILAND SPECIAL ASSISTANCE FOR PROJECT IMPLEMENTATION FOR BANGKOK MASS TRANSIT DEVELOPMENT PROJECT IN THAILAND FINAL REPORT SEPTEMBER 2010 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS, CO., LTD. Special Assistance for Project Implementation for Mass Transit Development in Bangkok Final Report TABLE OF CONTENTS Page CHAPTER 1 INTRODUCTION ..................................................................................... 1-1 1.1 Background of the Study ..................................................................................... 1-1 1.2 Objective of the Study ......................................................................................... 1-2 1.3 Scope of the Study............................................................................................... 1-2 1.4 Counterpart Agency............................................................................................. 1-3 CHAPTER 2 EXISTING CIRCUMSTANCES AND FUTURE PROSPECTS OF MASS TRANSIT DEVELOPMENT IN BANGKOK .............................. 2-1 2.1 Legal Framework and Government Policy.......................................................... 2-1 2.1.1 Relevant Agencies....................................................................................... 2-1 2.1.2
    [Show full text]
  • An Inventory and Assessment of National Urban Mobility in Thailand
    Development of a National Urban Mobility Programme - an Inventory and Assessment of National Urban Mobility in Thailand A project of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with the Thai Office of Transport and Traffic Policy and Planning (OTP) Final Report November 2019 Development of a National Urban Mobility Programme Project Background Transport is the highest energy-consuming sector in 40% of all countries worldwide, and causes about a quarter of energy-related CO2 emissions. To limit global warming to two degrees, an extensive transformation and decarbonisation of transport is necessary. The TRANSfer project’s objective is to increase the efforts of developing countries and emerging economies for climate-friendly transport. The project acts as a mitigation action preparation facility and thus, specifically supports the implementation of the Nationally Determined Contributions (NDC) of the Paris Agreement. The project supports several countries (including Peru, Colombia, the Philippines, Thailand, Indonesia) in developing greenhouse gas mitigation measures in transport. The TRANSfer project is implemented by GIZ and funded by the International Climate Initiative (IKI) of the German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and operates on three levels. Mobilise Prepare Stimulate Facilitating the Preparation of Knowledge products, Training, MobiliseYourCity Mitigation Measures and Dialogue Partnership Standardised support Based on these experiences, TRANSfer The goal of the multi- packages (toolkits) are is sharing and disseminating best stakeholder partnership developed and used for the practises. This is achieved through the MobiliseYourCity, which is preparation of selected development of knowledge products, currently being supported by mitigation measures. As a the organisation of events and trainings, France, Germany and the result, measures can be and the contribution to an increasing European Commission, is that prepared more efficiently, level of ambition.
    [Show full text]
  • Investigation on Physical Distancing Measures for COVID-19 Mitigation of Rail Operation in Bangkok, Thailand
    Investigation on Physical Distancing Measures for COVID-19 Mitigation of Rail Operation in Bangkok, Thailand Somsiri Siewwuttanagul1*, Supawadee Kamkliang2 & Wantana Prapaporn3 1,2 The Cluster of Logistics and Rail Engineering, Faculty of Engineering, Mahidol University, Thailand 3 Graduate School of Science and Engineering, Saga University, Japan * Corresponding author e-mail: [email protected] Received 5/5/2020; Revised 2/6/2020; Accepted 23/6/2020 Print-ISSN: 2228-9135, Electronic-ISSN: 2258-9194, doi: 10.14456/built.2020.7 Abstract The COVID-19 pandemic is the global health crisis and was declared a pandemic on 11th April 2020 by the World Health Organization (WHO). The most common solution is physical distancing which refers to avoiding close contact with other people by keeping a physical space between others. The COVID-19 pandemic is challenging mass transit services which are usually crowded with passengers. There is a need for an effort to save lives and stop spreading the virus, but metro transit still needs to provide services to people. Although the metro operators in Bangkok had a quick response to this pandemic by implementing physical distancing measures at stations and in passenger cars, effective levels of these measures are still under question. This study compares the physical distancing data surveyed during the COVID-19 pandemic and close contact transmission by breathing which defined the risk distance. The study investigates passenger levels of infection risk from close contact transmissions by breathing during the time at the metro station, based on the location where activities take place in metro stations: concourse level, platform level, and in the passenger car during the commute.
    [Show full text]
  • TOD Factors Influencing Urban Railway Ridership in Bangkok
    TOD Factors Influencing Urban Railway Ridership in Bangkok Varameth Vichiensan Nattapon Suk-kaew Masanobu Kii Department of Civil Engineering Mass Rapid Transit Authority Faculty of Engineering and Design Kasetsart University of Thailand Kagawa University Bangkok, Thailand Bangkok, Thailand Takamatsu, Japan [email protected] [email protected] [email protected] Yoshitsugu Hayashi Center for Sustainable Development and Global Smart City Chubu University, Aichi, Japan [email protected] Abstract— Currently, three urban railway system are A. Urban Development running in Bangkok Metropolitan Region - Bangkok Transit The city of Bangkok was established on the right bank of System (BTS) Bangkok Mass Rapid Transit (MRT) and Airport the Chao Phraya River in 1782 with a territory of 3.5 km2 and Rail Link (ARL). However, the development pattern in the area population of about 50,000. The city has built canals for around train stations are different. This paper presents a cluster analysis of urban railway stations in Bangkok that has influence communication and security functions. Since then people have railway ridership. The cluster analysis shows that transit station been attracted to reside along the waterway network. classification can be classified into three clusters – high-density Population has been continuously increasing with migrants commercial areas, high-density residential areas (most are in from countryside and foreign countries. The city has dense residential areas and close to economic areas) and continuously expanded to the west side of Chao Phraya river, medium-density commercial and residential areas (most are in so-called Thonburi side. The city has expanded to the north, moderate and low residential areas).
    [Show full text]
  • 2019 International Conference on Advances in Biological Science and Technology
    ICABST2019 2019 International Conference on Advances in Biological Science and Technology Conference Program & Abstract Book Bangkok, Thailand December 26th - 28th, 2019 Content 1. Welcome Message .............................................................................................................. 1 2. Introduction for Organizer/Co-organizer ............................................................................... 2 Asia-Pacific Association of Natural Science and Engineering ............................................... 2 Maejo University ................................................................................................................... 2 Media Partners ..................................................................................................................... 2 3. Committee Members ............................................................................................................ 3 Conference Chairs ................................................................................................................ 3 Scientific Committee ............................................................................................................. 3 Review Committee ............................................................................................................... 3 Conference Secretariat ......................................................................................................... 3 4. Conference Information ......................................................................................................
    [Show full text]
  • A Comparative Study of Bangkok's Mass Rapid Transit System
    Project Number: 48-JFZ-BKST A COMPARATIVE STUDY OF BANGKOK'S MASS RAPID TRANSIT SYSTEM An Interactive Qualifying Project Report submitted to the Faculty of WORCESTER POLYTECHNIC INSTITUTE in partial fulfillment of the requirements for the Degree of Bachelor of Science By Pitchaya Lekeagkarat Vacharaporn Paradorn Krisnapong Uampornvanich Date: March 1, 2001 Approved: Professor John F. Zeugner AUTHORSHIP PAGE This project was entirely a group effort. All three members equally contributed in the research, data gathering, analysis and final write-up. Page missing or incorrectly numbered in original IQP/MQP SCANNING PROJECT George C. Gordon Library WORCESTER POLYTECHNIC INSTITUTE EXECUTIVE SUMMARY This project examines the feasibility of the implementation of the Bangkok Mass Transit System (BTS) in Thailand in term of applicability, history organizational structure, management, technology, financial situation, and social impact. Moreover, this project includes a comparison among BTS and three other U.S. transit systems; Metro D.C., Miami Dade Transit, and San Francisco BART. The project begins with a background history of the development of mass rapid transit in Bangkok. The government of Thailand has concerned about the traffic crisis in Bangkok, the capital of Thailand, for at least thirty years. The best solution to the critical traffic problem with the minimum environmental impact is the construction of a mass rapid transit system. The objective of the mass rapid transit is to provide the people of Bangkok with a fast, clean, affordable
    [Show full text]
  • Bangkok Mass Transit System Public Company Limited Company Rating: a Issue Rating: up to Bt12,000 Million Senior Debentures Due Within 2016 a Rating Outlook: Stable
    Contacts E-mail Addresses Monthip Pringuthumporn [email protected] N e w s f o r I n v e s t o r s Yingyong Chiaravutthi,CFA [email protected] Nopalak Rakthum [email protected] Announcement No. 639 17 July 2009 Suchada Pantu [email protected] Bangkok Mass Transit System Public Company Limited Company Rating: A Issue Rating: Up to Bt12,000 million senior debentures due within 2016 A Rating Outlook: Stable Rating Rationale TRIS Rating assigns the company rating of Bangkok Mass Transit System PLC (BTSC) and the rating of BTSC’s issue of up to Bt12,000 million in senior debentures at “A”. The proceeds from the debentures will be used to repay existing debts. The ratings are based on the assumption that the company will not exercise the call option on the convertible debentures before the issuance of the new debentures. The ratings reflect a proven record of system ridership, stable operating cash flow, the benefits from being a mass transit system located in downtown Bangkok, potential ridership growth, and a strong balance sheet after the business rehabilitation. These strengths are partially offset by a single network, large capital expenditures needed over the next four years, increased business risk profile as BTSC begins to invest in property development through its subsidiaries, and political risk which most concessionaires face. In addition, debenture holders should be aware that there is no negative pledge under the terms and conditions governing the rights and obligations of the company and the debenture holders. Though all of BTSC’s assets are currently free of encumbrances, the company may provide collateral to any creditor in the future.
    [Show full text]
  • Sustaining Transit Investment in Asia's Cities
    JAKARTA Southeast-Asian-Transformation-Cover-Web.pdf 1 04/04/2019 8:41 AM JAKARTA Sustaining Transit Investment in Asia’s Cities A Beneficiary-FundingJAKARTA and Land Value Capture Perspective BANGKOKJAKARTA This report explains how proven methods of land value capture can help fund sustained urban transit investment in developing countries in Asia. It provides a primer on the importance of land value capture in urban planning and growth and identifies challenges to its use in Southeast Asian megacities like Bangkok, Jakarta, and Manila. The report combines technical analysis of land value increases arising from public mass transit investments with policy recommendations on the use of land value BANGKOKcapture mechanisms in a developing country context. JAKARTABANGKOK About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its eorts to eradicate extreme poverty. Established in 1966, it is owned by 68 MANILAmembers—49 from the region. Its main instruments for helping its developing member countries are JAKARTA BANGKOK policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. MANILA SUSTAINING TRANSIT INVESTMENT IN ASIA’S CITIES A Beneficiary-Funding and Land Value Capture Perspective BANGKOKISBN 978-92-9261-572-7 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City APRIL 1550 Metro Manila, Philippines 9 789292 615727 www.adb.org SUSTAINING TRANSIT INVESTMENT IN ASIA’S CITIES A Beneficiary-Funding and Land Value Capture Perspective Abdul Abiad, Kathleen Farrin, and Chris Hale Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2019 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org Some rights reserved.
    [Show full text]
  • Sathon Nonthaburi Chaophaya River
    How to Travel to THE MUSEUM From Sukhumvit, Chidlom, and Siam Area Take BTS skytrain (Sukhumvit Line) bound for Mochit from any stations near your hotels. Get off at Ari Station (Exit 1). Then take a taxi into Samsen Road Soi 28. Turn left at Yaek Soi Ongkarak 13. The Museum of Floral Culture is about 30 meters away on the right. From Ari Station, it will take approximately 30 minutes to reach the museum. From Silom Area There are two options from Silom area. First is to travel by skytrain and second is to travel by Chao Phraya Express Boat. Travel by BTS skytrain Take BTS skytrain (Silom Line) bound for National Stadium from any station near your hotels. Purchase the ticket to Ari Station. Change train to Sukhumvit Line bound for Mochit at Siam Station. Get off at Ari Station (Exit 1). Then take a taxi into Samsen Road Soi 28. Turn left at Yaek Soi Ongkarak 13. The Museum of Floral Culture is about 30 meters away on the right. From Ari Station, it will take approximately 30 minutes to reach the museum. Travel by Chao Phraya Express Boat Take BTS skytrain (Silom Line) bound for Talat Phlu from any station near your hotels. Purchase ticket to Saphan Taksin Station. Get off at Saphan Taksin Station, walk down to Sathon Pier (Central Pier) using Exit 2. Travel to The Museum of Floral Culture only on the Orange Flag Chao Phraya Express Boat. Wait for the boat bound for Nonthaburi at Sathon Pier (Central Pier). Get off at Payap Pier (N18).
    [Show full text]
  • Bangkok Rapid Transit
    Annual Report BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) For Period from 1 April 2017 to 31 March 2018 Table of Contents Part Part 1 The Fund’s Operation 2 Management and Good Governance 1. Fund Information 2 7. Details of Investment Units 35 1.1 Name, Type, Fund Capital and 2 7.1 Investment Units 35 Term of Fund 7.2 Details of Unitholders 37 1.2 Name of Management Company and 2 7.3 Distributions of the Fund 38 Fund Supervisor 8. Management Structure 41 2. Policy, Overall Business and 3 8.1 Management Company 41 Seeking of Benefits 8.2 Infrastructure Asset Manager 54 2.1 Vision, Objective, Goal and Operating 3 8.3 Fund Supervisor 57 Strategies 8.4 Investment Advisory Committee 61 2.2 Significant Changes and Developments 7 8.5 Name, Address and Telephone Number 62 2.3 Relationship with the Business Groups 10 of Auditor, Fund Registrar and Asset of Infrastructure Asset Manager or Appraiser Major Unitholders 8.6 Punishment and Fine Penalty 62 2.4 Assets of the Fund 12 9. Corporate Governance 63 2.5 Seeking of Benefits from the 14 9.1 Governance Policy 63 Infrastructure Assets 9.2 Sub Committee 63 2.6 Borrowing 15 9.3 Protection of the Misuse of 64 3. Business and Industry Overview : 16 Inside Information Mass Transit 9.4 Investment Decision Making and 64 4. Risk Factors 28 Fund Management 5. Legal Dispute 31 9.5 Selection of the Asset Manager 65 6. Other Significant Information 33 9.6 Supervision of the Asset Manager’s 65 Operation 9.7 Supervision of the Fund’s Interest 65 9.8 Remuneration of the Management 67 Company 9.9 Disclosure of Information to the 67 Unitholders Part 3 Financial Position and Performance 9.10 Meeting of Unitholders 67 13.
    [Show full text]