Flood Prone Risk and Amenity Values: A Spatial Hedonic Analysis

19 Pages Posted: 4 Oct 2010

Abstract

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.

Suggested Citation

Samarasinghe, Oshadhi and Sharp, Basil, Flood Prone Risk and Amenity Values: A Spatial Hedonic Analysis. Australian Journal of Agricultural and Resource Economics, Vol. 54, No. 4, pp. 457-475, October 2010. Available at SSRN: https://ssrn.com/abstract=1684821 or http://dx.doi.org/10.1111/j.1467-8489.2009.00483.x

Oshadhi Samarasinghe (Contact Author)

Landcare Research

Private Bag 92170 Auckland Mail Centre
Aukland, 1142
New Zealand

Basil Sharp

University of Auckland ( email )

Private Bag 92019
Tamaki, room: 723.322
Auckland
New Zealand
64-9-373-7599 extn: 8759 (Phone)

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