The Impact of Flood Hazard on Residential Property Price

Abstract

This study assesses the effects of flood hazard on property price, which focus on residential property. The growth in the population has resulted in more areas being explored, including areas that are prone to flooding. The exploration of a new area for housing development also brings vulnerability to flood hazard. This research employed hedonic regression method to assess the impact of flood to property price between low-flood and non-flood areas. The case study areas are residential properties along Langar River, Selangor, Malaysia. The findings reveal that residential price in case study areas have only little impact in terms of price impact from the flood events. This study also establishes a new valuation model by considering flood hazard. It is expected that the impact from the flood to property price will be significant in future due to changes in property demand patterns as well as the increase in environmental issues.

Citation

Razali, M.N., Zulkarnain, S.H. and Tarmidi, Z. (2021), "The Impact of Flood Hazard on Residential Property Price", Alias, N.E., Haniffah, M.R.M. and Harun, S. (Ed.) Water Management and Sustainability in Asia (Community, Environment and Disaster Risk Management, Vol. 23), Emerald Publishing Limited, Leeds, pp. 3-11. https://doi.org/10.1108/S2040-726220210000023007