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A Location Effect on the Capital Gains of Condominium Investment

Author

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  • Teeramungcalanon Monthinee

    (Pridi Banomyong International College, Thammasat University, 2 Phra Chan Alley, Khwaeng Phra Borom Maha Ratchawang, Khet Phra Nakhon, Bangkok 10200, Thailand)

  • Rattanaprichavej Niti

    (Thammasat Business School, Thammasat University, 2 Phra Chan Alley, Khwaeng Phra Borom Maha Ratchawang, Khet Phra Nakhon, Bangkok 10200, Thailand)

Abstract

This research focuses on the effect of locational factors on condominium capital gains investment in Thailand. It employed secondary data selected through judgmental sampling. Capital gains data spanning 5 to 15 years were collected quarterly from 1,381 condominium projects in Thailand. ANOVA and Pearson correlation were conducted to study the relationship between locations, capital gains, and price per square meter. The main findings can be summarized in three aspects: capital gains rates, locations, and timing, indicating that investing in a condominium based solely on capital gains without considering rental fees may not be a favorable strategy. Furthermore, regarding locations and timing, no significant returns were contributed. Although each location does not significantly contribute to different capital gains, the research highlights that residential and commercial activities are the most critical factors for generating higher-than-average capital gains. As a result, residential areas, the Bangkok Central Business District (CBD), Bangkok suburbs, commercial districts, and high-density residential areas are the top five potential locations for investment. Moreover, the relationship between the capital gains and the prices per square meter exhibits three directions: positive, negative, and no relationship, depending on locations.

Suggested Citation

  • Teeramungcalanon Monthinee & Rattanaprichavej Niti, 2025. "A Location Effect on the Capital Gains of Condominium Investment," Real Estate Management and Valuation, Sciendo, vol. 33(1), pages 70-84.
    • Handle: RePEc:vrs:remava:v:33:y:2025:i:1:p:70-84:n:1007
    DOI: 10.2478/remav-2025-0007
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    References listed on IDEAS

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    1. Jennifer L. Blouin & Jana Smith Raedy & Douglas A. Shackelford, 2003. "Capital Gains Taxes and Equity Trading: Empirical Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 41(4), pages 611-651, September.
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    3. Alastair Adair & Stanley McGreal & James Webb, 2006. "Diversification Effects of Direct versus Indirect Real Estate Investments in the U.K," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 12(2), pages 85-90, January.
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    More about this item

    Keywords

    capital gains; condominium; location; real estate appreciation; real estate investment;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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