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Land and Real Estate Price Sensitivity to a Disaster: Evidence from the 2011 Thai Floods

Author

Listed:
  • Yasuyuki Sawada

    (University of Tokyo and Asian Development Bank)

  • Hiroyuki Nakata

    (University of Leicester)

  • Kunio Sekiguchi

    (Ehime Prefectural Government)

  • Yoko Okuyama

    (Yale University)

Abstract

This paper investigates the impacts of a natural disaster on land and real estate prices. Using unique land and real estate price panel datasets for multiple periods, one group before and the other after the 2011 floods in Thailand, we find that the floods adversely affected land prices for industrial use. However, the prices of commercial and residential land did not decline despite substantial damages from the floods, suggesting a relative lack of liquidity or other frictions in the land and real estate markets in Thailand.

Suggested Citation

  • Yasuyuki Sawada & Hiroyuki Nakata & Kunio Sekiguchi & Yoko Okuyama, 2018. "Land and Real Estate Price Sensitivity to a Disaster: Evidence from the 2011 Thai Floods," Economics Bulletin, AccessEcon, vol. 38(1), pages 89-97.
    • Handle: RePEc:ebl:ecbull:eb-18-00022
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    References listed on IDEAS

    as
    1. Terrance R. Skantz & Thomas H. Strickland, 1987. "House Prices and a Flood Event: An Empirical Investigation of Market Efficiency," Journal of Real Estate Research, American Real Estate Society, vol. 2(2), pages 75-83.
    2. World Bank & United Nations, 2010. "Natural Hazards, UnNatural Disasters : The Economics of Effective Prevention," World Bank Publications - Books, The World Bank Group, number 2512, December.
    3. SAWADA Yasuyuki & NAKATA Hiroyuki & SEKIGUCHI Kunio, 2014. "Natural Disasters, Land Price, and Location of Firms: Evidence from Thailand," Discussion papers 14029, Research Institute of Economy, Trade and Industry (RIETI).
    4. World Bank, 2012. "Thai Flood 2011," World Bank Publications - Reports 26862, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chuanhao Tian & Xintian Peng & Xiang Zhang, 2021. "COVID-19 Pandemic, Urban Resilience and Real Estate Prices: The Experience of Cities in the Yangtze River Delta in China," Land, MDPI, vol. 10(9), pages 1-17, September.
    2. Fang Wei & Lvwang Zhao, 2022. "The Effect of Flood Risk on Residential Land Prices," Land, MDPI, vol. 11(10), pages 1-18, September.

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    More about this item

    Keywords

    Natural Disaster; Floods; and Land and Real Estate Prices;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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