RETRACTED ARTICLE: Property market price response to flood-hazard
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Property market price response to flood‑hazard Muhammad Najib Razali1 · Siti Hafsah Zulkarnain2,3 · Zakri Tarmidi1 · Nurul Hana Adi Maimun1 · Yasmin Mohd. Adnan4 · Muhamad Ali Yuzir2 Received: 13 September 2018 / Accepted: 21 September 2018 © Springer Nature B.V. 2018
Abstract Property market price will normally depend on the differential of location and amenities. Real estate theory in determining value has been evolving over the years due to changes in several factors. This includes property types, financial products and environmental attributes. Theoretically, selling houses in environmentally sensitive areas such as in a flood zone will be lower than equivalent subject property outside this area. Nevertheless, environmental attributes are very subjective and relatively new in valuation theory. This study assesses the effects of flood-hazard on property price, which focus on residential property. The growth in the population has resulted in more areas being explored, including areas that are prone to flooding. The exploration of a new area for housing development also brings vulnerability to flood-hazard. Valuation calculation to determine house price needs to respond to flood-hazard as it will have an impact on the property market in terms of investment. As such, this study also establishes a new valuation model by taking into account flood-hazard. It is expected that the impact from the flood to property price will be significant in future due to changes in property demand patterns as well as the increase in environmental issues. Keywords Flood · Hazard · House · Market · Price · Property · Valuation
1 Introduction Property price depends on several attributes that contribute to the value. The attributes that contribute to the property value comprise several elements such as supply, demand, construction costs, rental rates, required yields, savings and non-real estate investment * Muhammad Najib Razali [email protected] 1
Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, Johor Bahru, Johor, Malaysia
2
Malaysia‑Japan International Institute of Technology (MJIIT), Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
3
Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
4
Faculty of Built Environment, Universiti Malaya, Kuala Lumpur, Malaysia
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Natural Hazards
opportunities (Ling and Archer 2013). In reality, there are many categories of properties such as residential, office, industry, leisure, special property and property used for land acquisition purpose. As each property has its own characteristics, the approach of valuation is also different. Traditionally in determining a property value, there are five methods that are normally used by valuers or for appraisals. Malaysia Valuation Standards (2000) state that ‘valuation is an opinion or written thoughts on the modal value or rental value based on any basic method of valuation after taking into account the importance of the property with or
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