Thesis Public Defense | VNP27 - Nguyễn Tiến Hưng

Land saleprice affected by flooding. A case study in Thu Duc City

Student: Nguyễn Tiến Hưng, VNP-27

Supervisor: Prof.Dr. Nguyễn Trọng Hoài

Abstract:

 Flooding risk has become more increasing threat to real estate market due to the value depreciation it causes to the property. Many previous studies found the relationship between this issue fixtures such as appearance in flood-prone area, frequency, depth, and the value of house or land. However, there are lack of study about this issue in Ho Chi Minh city area. Moreover, researchers also found that an area high- urbanization like Thu Duc city, a subdivision of Ho Chi Minh city can relate to high risk of flooding. Hence, this study is necessary for officials, business and customers to help making rightful decision for investing and apply policies which minimize the flooding damage. The research applies hedonic price function to estimate the effect of urban flooding of Thu Duc city by using the announced sale price from various real estate online trading platforms as the dependent variable. All explanatory variables included several land characteristics such as area square in meters, the structural width, locational attributes and innudation risk features. The result shows that there are difference of the correlation to selling price between the levels of inundation depth. The selling price of the observation within the level 1 inundation depth will lower by 7.7 percent than the unaffected one, while the others which have higher level of inundation depth are not statistically significant.

Keywords: Flooding risk, inundation depth, hedonic pricing model, selling land price