The Hedonic approach to examining the impacts of flood on property value in Malaysia

Flood disaster adversely affect human life as people are forced to leave their homes during flood. Properties located in the flood-prone area suffers lower demand, resulting in lower prices. Although there have been numerous studies discussing the risk of devaluation of properties situated in flood...

Full description

Saved in:

Bibliographic Details
Main Author:	Nur Hafizah, Mohammad Ismail
Format:	Thesis
Language:	eng eng eng eng
Published:	2017
Subjects:	HN Social history and conditions Social problems Social reform
Online Access:	https://etd.uum.edu.my/8681/1/Depositpermission_not%20allow_s94565.pdf https://etd.uum.edu.my/8681/2/s94565_01.pdf https://etd.uum.edu.my/8681/3/s94565_02.pdf https://etd.uum.edu.my/8681/4/s94565_references.docx
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.8681
record_format	uketd_dc
spelling	my-uum-etd.86812021-09-28T07:50:36Z The Hedonic approach to examining the impacts of flood on property value in Malaysia 2017 Nur Hafizah, Mohammad Ismail Abd Karim, Zaini Hasan Basri, Bakti Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HN Social history and conditions. Social problems. Social reform Flood disaster adversely affect human life as people are forced to leave their homes during flood. Properties located in the flood-prone area suffers lower demand, resulting in lower prices. Although there have been numerous studies discussing the risk of devaluation of properties situated in flood-prone areas in the developed countries, those that focused on the impact of flooding on residential, agricultural and industrial land properties in Malaysia are still lacking. Therefore, this study investigates the effect of flood on property values in Malaysia as well as households‟ willingness to pay for flood-control measures to mitigate flood incidence. To achieve these objectives, the study employs the Hedonic Pricing Model (HPM) in estimating the effect of flood on residential, agricultural and industrial land property values and calculating households‟ willingness to pay. The results of the study show that the market values of residential and land properties significantly decrease due to flooding. This might be due to the high repair cost for house renovation and asset recovery on agricultural and industrial land. In addition, the results also show that the coefficient of the interaction terms of flood variables with the structural attributes of residential, agricultural and industrial land properties are statistically significant, suggesting that the effect of flood on the residential and land property values differs across their structural attributes. The results also suggest that the respondents were willing to pay to reduce flood incidence. Based on these results, several policy recommendations are suggested. These include the potential to impose a charge on households for flood mitigation purposes; introducing flood insurance programmes; applying appropriate sustainable drainage systems and lastly, improving the current flood warning systems to minimise property losses. 2017 Thesis https://etd.uum.edu.my/8681/ https://etd.uum.edu.my/8681/1/Depositpermission_not%20allow_s94565.pdf text eng staffonly https://etd.uum.edu.my/8681/2/s94565_01.pdf text eng staffonly https://etd.uum.edu.my/8681/3/s94565_02.pdf text eng staffonly https://etd.uum.edu.my/8681/4/s94565_references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Abd Karim, Zaini Hasan Basri, Bakti
topic	HN Social history and conditions Social problems Social reform
spellingShingle	HN Social history and conditions Social problems Social reform Nur Hafizah, Mohammad Ismail The Hedonic approach to examining the impacts of flood on property value in Malaysia
description	Flood disaster adversely affect human life as people are forced to leave their homes during flood. Properties located in the flood-prone area suffers lower demand, resulting in lower prices. Although there have been numerous studies discussing the risk of devaluation of properties situated in flood-prone areas in the developed countries, those that focused on the impact of flooding on residential, agricultural and industrial land properties in Malaysia are still lacking. Therefore, this study investigates the effect of flood on property values in Malaysia as well as households‟ willingness to pay for flood-control measures to mitigate flood incidence. To achieve these objectives, the study employs the Hedonic Pricing Model (HPM) in estimating the effect of flood on residential, agricultural and industrial land property values and calculating households‟ willingness to pay. The results of the study show that the market values of residential and land properties significantly decrease due to flooding. This might be due to the high repair cost for house renovation and asset recovery on agricultural and industrial land. In addition, the results also show that the coefficient of the interaction terms of flood variables with the structural attributes of residential, agricultural and industrial land properties are statistically significant, suggesting that the effect of flood on the residential and land property values differs across their structural attributes. The results also suggest that the respondents were willing to pay to reduce flood incidence. Based on these results, several policy recommendations are suggested. These include the potential to impose a charge on households for flood mitigation purposes; introducing flood insurance programmes; applying appropriate sustainable drainage systems and lastly, improving the current flood warning systems to minimise property losses.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Nur Hafizah, Mohammad Ismail
author_facet	Nur Hafizah, Mohammad Ismail
author_sort	Nur Hafizah, Mohammad Ismail
title	The Hedonic approach to examining the impacts of flood on property value in Malaysia
title_short	The Hedonic approach to examining the impacts of flood on property value in Malaysia
title_full	The Hedonic approach to examining the impacts of flood on property value in Malaysia
title_fullStr	The Hedonic approach to examining the impacts of flood on property value in Malaysia
title_full_unstemmed	The Hedonic approach to examining the impacts of flood on property value in Malaysia
title_sort	hedonic approach to examining the impacts of flood on property value in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2017
url	https://etd.uum.edu.my/8681/1/Depositpermission_not%20allow_s94565.pdf https://etd.uum.edu.my/8681/2/s94565_01.pdf https://etd.uum.edu.my/8681/3/s94565_02.pdf https://etd.uum.edu.my/8681/4/s94565_references.docx
_version_	1747828438351216640

The Hedonic approach to examining the impacts of flood on property value in Malaysia

Similar Items