A hedonic pricing model of condominiums in Hua hin area, Thailand

Abstract

This study aims to describe the characteristics of the condominiums in the Hua Hin area and also find which characteristics affect the price of the condominiums. The scope of the study is based on condominiums that are between 0 - 10 years and located in the area of Hua Hin district, Cha-Am district, and Pranburi district. The secondary data is collected from real estate websites and official websites of the condominiums. There are 126 observations that are 126 patterns of the unit within 44 condominiums. The hedonic pricing model and OLS regression are applied for analysis on 2 models with different dependent variables: the average price of the condominium and the starting price of the condominium. As a result of model 1, the average price of the condominium as a dependent variable, for the locational attributes, the significant characteristics are population density and on-the-main-street condominium. For structural attributes, the significant variables are the age of the condominium, the number of buildings, the number of units, the number of parking lots, the ready-to-move-in room, and the fully furnished room. For neighborhood attributes, the significant characteristics are common fees, distance to the beach, distance to the mall(Bluport Hua Hin), and distance to the nearest hospital. As a result of model 2, the starting price of the condominium as a dependent variable, for the locational attributes, there is no significant variable. For structural attributes, the significant variables are the age of the condominium, the developer: Sansiri, the number of buildings, the number of units, unit area, the number of beds, and the number of parking lots. For neighborhood attributes, the significant characteristics are distance to the beach and distance to the nearest hospital. In conclusion, the significant characteristics which determine the average price and the starting price of the condominium are different. Therefore, developers, investors, long-stay tourists, and other customers can use these significant characteristics to consider investing or purchasing the condominiums in Hua Hin area.