A Hedonic Modelling of Land Property Value Based on the Effect of Flooding: A Case for Peninsular Malaysia
The effect of flooding on land property value is a major concern of all landowners. Numerous studies have already discussed the risk of potential decline in the value of land property situated in flood-prone areas; however, those that focused on the impact of flooding on land property in Malaysia are still limited. This chapter investigates the effect of flood on the value of agricultural and industrial land properties in Peninsular Malaysia. This chapter’s results suggest that a metre increase in flood depth significantly decreases land property value by 44.6%. This result helps policymakers in designing and developing the policies of land property development that would minimize land property devaluation due to flood depth and help landowners in understanding the effect of flood on land property values.
KeywordsFlood depth Hedonic pricing model Land property value
The authors wish to thank the Ministry of Higher Education Malaysia for funding this study under the Long-Term Research Grant Scheme (LRGS/b-u/2012/UUM/Teknologi Komunikasi dan Informasi). The views expressed in this study are those of the authors and do not necessarily reflect the views or policies of the ministry or the project team. Any errors are the sole responsibility of the authors.
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