The Effect of Noise Quality Level on Housing Price in Bangkok Metropolitan Region (BMR), Thailand: A Hedonic Pricing Approach

Bangkok Metropolitan Region (BMR) is the area which consists of the Bangkok Metropolitan Area (BMA), the capital city of Thailand, and its 5 adjacent provinces which are Nontha Buri, Pathum Thani, Samut Prakan, Nakhon Pathom and Samut Sakhon. BMR consists of BMA and 5 adjacent provinces, be divided into 8 zones of Bangkok Inner City (BIC) contains the government building, ancient and cultural area, education institutes and central business centre (CBD). Bangkok Urban Fringe (BUF) is connected between BIC and the suburban zone. Bangkok Suburban Area (BSA) is a mix between urban and rural areas [1]. Most land is used for agricultural activities and high intensity of the natural resources. Nontha Buri province (NB) locates directly northwest of BMA. Pathum Thani province (PT) locates directly north of BMA. Many parts the boundary between the two provinces is not noticeable, both sides of the boundary are being equally urbanized. Samut Prakan province (SP) locates directly south of BMA. Many parts the boundary between the two provinces is not noticeable. Suvarnabhumi Airport is also in SP. Nakhon Pathom province (NP) locates on west to 56 km from BMA in the alluvial plain of central Thailand. Zone SS: Samut Sakhon province (SS) locates on southwest of BMA [2-4]. There are several studies for inside and outside environments were conducted which relate to the impact of noise pollution to human comfort [5]. It has been confirmed that the noise pollution is inducing impact to the housing price. Price of house in intensive environmental problems is usually lower than better environmental area [6-10], while some studies indicate in opposite result that noise level is insignificant [11] or even found to be positively correlated with the price [12] for others same housing condition. Abstract: This study focuses on noise pollution influenced to house-selling price in Bangkok Metropolitan Region (BMR), Thailand. The housing price model provides interpreting of noise pollution affected, toward hedonic pricing approach. The model presents house-selling price with its predictors include of sale year, lot size, dwelling area, dwelling stories, dwelling type, brand, project location, and noise pollution level. There are 1,742 samples of house sales during 2004-2010 in 8 zones of BMR employ to develop the model. In this study, noise pollution data in BMR were collected from 14 noise monitoring stations of Pollution Control Department. The data is based on yearly average of noise level on entire year of house-selling record. The results indicate that house price decrease 0.70 % for every 1 A-weighted Decibels (dB (A)) increasing of noise pollution level. In addition, the model presents house price increase 2.47 % annually; and lot size, brand, dwelling area, and dwelling floor are positively impact to the price. The findings shows that the price for single detached house is effected by the noise pollution. In contrast, the duplexes and townhouses illustrate the negative impact to the price. Moreover, price of houses in Bangkok Urban Fringe and Bangkok Suburban Area decrease 24.35 % to 45.77 % compare to houses locate in Bangkok Inner City. These findings confirm the strongly understanding on negative impact of noise pollution to house-selling price in BMR. The results should support knowledge of noise pollution impact to housing price for making appropriate policy for urban and housing environmental management. In addition, the model could provide a guideline for developers on setting the appropriate house price in BMR.