Hedonic Analysis of Residential Property Values in Bangkok: Spatial Dependence and Nonstationarity Effects

Abstract

That urban rail transit brings large benefit to the adjacent area is well recognized; however, to what extent it has influence over space is still questionable, especially in a city being young in urban railway experience. This paper presents hedonic analysis of residential property value in order to examine the factors that determine the sale price. The case study is an area along a corridor of BTS Sukhumvit line, which is Bangkok’s the first urban rail transit having been in service for over 10 years. The area has undergone rapid development, reflecting on the appreciated land value and increased number of tall building. Three hedonic models are presented: ordinary least square regression, spatial autoregressive model, and geographically weighted regression. It is found that the spatial effects present in the study area both spatial dependence and spatial nonstationarity. The results provide insight to improve railway services such as station access or feeder service.