A STUDY OF FACTORS AFFECTING CONSTRUCTION COSTS OF REAL ESTATE PROJECTS: A CASE STUDY OF TOWNHOME PROJECTS

Currently, the real estate development business is directly affected by the rapidly changing economic conditions. In particular, the development of real estate in the category of townhomes is a business with continuous investment and more competition. Therefore, real estate developers have to plan to control construction costs in order to determine the style of the project to suit the needs of the customers in each project. This research aims to study the factors affecting the construction cost of real estate projects: a case study of a townhome project. The researcher collected data on factors affecting construction costs from one hundred townhome projects and interviews with experts. The data were then analyzed by mean and multiple regression analysis. The results of the research revealed the five factors that affect the construction cost most significantly are the number of floors, the construction method, the design cost, the proportion of sales area per project area, and the usable area, respectively. Finally, the research suggests ways to use the information that can help real estate developers, project managers and related persons to use as a guideline in determining the development model of real estate projects in the type of townhomes in the future.