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Metropolis: Impact Assessment of Flood Risk on Housing Property Market in Taipei

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  • Shih Hsiung Chou
  • Shih Hung Chih

Abstract

Excessive development in hillside areas around Taipei Metropolis has increasingly caused the occurrence of floods in last decade. Many researches about hazards indicate that there will be disadvantageous consequences to real estate market when hazardous events happen. And we believe that this is due to the risk aversion tendency when people confront risky situation. This study aims to assess the impact of flood events and public risk perception on housing property market. To measure the short-term price fluctuation in housing property market results from flood events, we compare the trend price predicted from time-series model to market price before and after the event. While to analyze risk perception, we obtain public collective expressed preference about decision under flood risk through attitude scales surveyed to owner-occupiers and tenants residing in Taipei Metropolis. Finally, the impact of public risk perception to property market will be presented through correlation.

Suggested Citation

  • Shih Hsiung Chou & Shih Hung Chih, 2001. "Metropolis: Impact Assessment of Flood Risk on Housing Property Market in Taipei," ERES eres2001_132, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2001_132
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    References listed on IDEAS

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    1. Kurt J. Beron & James C. Murdoch & Mark A. Thayer & Wim P. M. Vijverberg, 1997. "An Analysis of the Housing Market before and after the 1989 Loma Prieta Earthquake," Land Economics, University of Wisconsin Press, vol. 73(1), pages 101-113.
    2. David M. Harrison & Greg T. Smersh & Arthur L. Schwartz, Jr, 2001. "Environmental Determinants of Housing Prices: The Impact of Flood Zone Status," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 3-20.
    3. Jill J. McCluskey & Gordon C. Rausser, 2001. "Estimation of Perceived Risk and Its Effect on Property Values," Land Economics, University of Wisconsin Press, vol. 77(1), pages 42-55.
    4. 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.
    5. James C. Murdoch & Harinder Singh & Mark Thayer, 1993. "The Impact of Natural Hazards on Housing Values: The Loma Prieta Earthquake," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 21(2), pages 167-184, June.
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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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