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Flood prone risk and amenity values: a spatial hedonic analysis
Author(s) -
Samarasinghe Oshadhi,
Sharp Basil
Publication year - 2010
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2009.00483.x
Subject(s) - amenity , flood myth , residential property , shore , 100 year flood , floodplain , property value , geography , real estate , business , cartography , geology , finance , economic geography , oceanography , archaeology
This study examines the impact of flood‐hazard zone location on residential property prices. The study utilises data from over 2000 private residential property sales occurred during 2006 in North Shore City, New Zealand. A spatial autoregressive hedonic model is developed to provide efficient estimates of the marginal effect of flood prone risks on property prices. Results suggest that the sale price of a residential property within a flood prone area is lower than an equivalent property outside the flood prone area. The flood plain location discount is reduced by the release of public information regarding flood risk.