The impact of flood dynamics on property values

Darshana Rajapaksa, Min Zhu, Boon Lee, Viet Ngu Hoang, Clevo Wilson, Shunsuke Managi

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

There is evidence that environmental amenities and dis-amenities may be nonlinearly related to property valuation. This would bring inconsistency in estimating environmental variables of the hedonic price model. To explore the linearity of the relationship this study analyses spatial and temporal variation impacts of the 2011 Brisbane flood on property markets using semi-parametric estimation. The results show that most environmental variables impacts on property values nonlinearly, and in particularly distance to the river, indicating that the amenity value of being close to a river outweighs the flood risks. The estimation of the combined impact of elapsed time and neighbourhood income indicates that the flood risk impact on property markets disappears over time.

Original languageEnglish
Pages (from-to)317-325
Number of pages9
JournalLand Use Policy
Volume69
DOIs
Publication statusPublished - Dec 1 2017

    Fingerprint

All Science Journal Classification (ASJC) codes

  • Forestry
  • Geography, Planning and Development
  • Nature and Landscape Conservation
  • Management, Monitoring, Policy and Law

Cite this

Rajapaksa, D., Zhu, M., Lee, B., Hoang, V. N., Wilson, C., & Managi, S. (2017). The impact of flood dynamics on property values. Land Use Policy, 69, 317-325. https://doi.org/10.1016/j.landusepol.2017.08.038