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Brand Value of Property in Bangkok Metropolitan Region (BMR), Thailand

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  • Damrongsak Rinchumphu

    ()
    (PhD Candidate, School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology, Australia)

  • Chris Eves

    ()
    (Professor in Property Economics, School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology, Australia)

  • Connie Susilawati

    ()
    (Senior Lecturer, School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University of Technology, Australia)

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    Abstract

    This paper aims to evaluate the brand value of property in subdivision developments in the Bangkok Metropolitan Region (BMR), Thailand. The result has been determined by the application of a hedonic price model. The development of the model is developed based on a sample of 1,755 property sales during the period of 1992-2010 in eight zones of the BMR. The results indicate that the use of a semi-logarithmic model has stronger explanatory power and is more reliable. Property price increases 12.90% from the branding. Meanwhile, the price annually increases 2.96%; lot size and dwelling area have positive impacts on the price. In contrast, duplexes and townhouses have a negative impact on the price compared to single detached houses. Moreover, the price of properties which are located outside the Bangkok inner city area is reduced by 21.26% to 43.19%. These findings also contribute towards a new understanding of the positive impact of branding on the property price in the BMR. The result is useful for setting selling prices for branded and unbranded properties, and the model could provide a reference for setting property prices in subdivision developments in the BMR.

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    Bibliographic Info

    Article provided by Asian Real Estate Society in its journal International Real Estate Review.

    Volume (Year): 16 (2013)
    Issue (Month): 3 ()
    Pages: 296-322

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    Handle: RePEc:ire:issued:v:16:n:03:2013:p:296-322

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    Postal: Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
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    Web page: http://www.asres.org/

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    Postal: Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA
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    Related research

    Keywords: Property price model; Hedonic pricing approach; Subdivision development; Bangkok metropolitan region; Brand value;

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    References

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