Masyhuri Hamidi
ABSTRACT
This research attempts to analyse the property price in city which has high natural risks. We examine the property price in Padang which is potentially hit by big earthquake and tsunami. This study investigates whether house prices are overvalued or undervalued. We use a sample of 100 homeowners in Padang to get a real data about their expected property values, especially their home. We compare houses market prices with their intrinsic values using expected cash flows analysis. We find overvaluation on house prices exists in all type house regardless its distance from coastal line, the existence of natural disaster shelters, anti-earthquake construction and size.
- Sommer K. and Sullivan, P. 2018. Implications of US Tax Policy for House Prices, Rents, and Homeownership, Am. Econ. Rev., 108, 2, 241--274.Google Scholar
Cross Ref
- Meen, G., Mihailov, A., and Wang, Y. 2016. Endogenous UK Housing Cycles and the Risk Premium: Understanding the Next Housing Crisis.Google Scholar
- Cook S., and Watson, D. 2017. Asymmetric Price Adjustment in the London Housing Market: A Disaggregated Analysis, Res. J. Econ., 1, 2, 1--7.Google Scholar
- Wang Y., and Jiang, Y. 2016. An Empirical Analysis of Factors Affecting the Housing Price in Shanghai, Asian J. Econ. Model., 4, 2, 104--111.Google ScholarCross Ref
- Akerlof, G. A. 1970. The Market for 'Lemons': Quality Uncertainty and the Market Mechanism, Q. J. Econ., 84, 3, 488--500.Google ScholarCross Ref
- Beltran, D. O., Cordell, L., and Thomas, C. P. 2017. Asymmetric information and the death of ABS CDOs, J. Bank. Financ., 76, 1--14.Google ScholarCross Ref
- Chiang, Y. H., Peng, T. C., and Chang, C. O. 2015. The nonlinear effect of convenience stores on residential property prices: A case study of Taipei, Taiwan, Habitat Int., 46, 82--90.Google ScholarCross Ref
- Bai Y., and Tan, M. 2018. Empirical Testing of Influencing Factors of China's Housing Prices - Evidence From Provincial Panel Data, Res. World Econ., 9, 1, 9.Google Scholar
- Wyatt, P. 2007. Property Valuation. Oxford: Blackwell Publishing.Google Scholar
- Defusco, A. A. 2018. Homeowner Borrowing and Housing Collateral: New Evidence from Expiring Price Controls, J. Finance, vol. LXXIII, 2.Google Scholar
- Wang Y. et al., 2017. Identifying the determinants of housing prices in China using spatial regression and the geographical detector technique, Appl. Geogr., 79, 26--36.Google ScholarCross Ref
- Hviid, S. J. 2015. Dynamic Models of the Housing Market, Aarhus University.Google Scholar
- Bayer, P., McMillan, R., Murphy, A., and Timmins, C. 2016. A Dynamic Model of Demand for Houses and Neighborhoods, Econometrica, 84, 3, 893--942.Google ScholarCross Ref
- Lamond, J., Proverbs, D., and Antwi, A. 2007. Measuring the impact of flooding on UK house prices, Prop. Manag., 25, 4, 344--359.Google Scholar
- Van Nieuwerburgh S., and Weill, P.-O. 2010. Why Has House Price Dispersion Gone Up?, Rev. Econ. Stat., 77, 4, 1567--1606.Google ScholarCross Ref
- Laursen, M. R. 2015. Using GIS to measure the impact of the Canterbury earthquakes on house prices in Christchurch, NZ, Int. J. Disaster Resil. Built Environ., 6, 1, 73--85.Google ScholarCross Ref
- Li W. and Yao, R. 2007. The Life-Cycle Effects of House Price Changes, J. Money, Credit Bank., 39, 6, 1375--1409.Google ScholarCross Ref
- Floetotto, M., Kirker, M., and Stroebel, J. 2016. Government Intervention in the Housing Market: Who Wins, Who Loses?, J. Monet. Econ., 80.Google ScholarCross Ref
- Alimov, A. 2016. Product market effects of real estate collateral, J. Corp. Financ., 36, 75--92.Google ScholarCross Ref
- Adelino, M., Schoar, A., and Severino, F., 2015. House prices, collateral, and self-employment, J. financ. econ., 117, 2, 288--306.Google Scholar
- Fabozzi, F. J., Shiller, R. J., and Tunaru, R. S. 2010. Property derivatives for managing European real-estate risk, Eur. Financ. Manag., 16, 1, 8--26Google ScholarCross Ref
- Mahan, B. L., Polasky, S., and Adams, R. M. 2000. Valuing Urban Wetlands: A Property Price Approach, Land Econ., 76, 1, 100.Google ScholarCross Ref
- Eves, C. 2004. The impact of flooding on residential property buyer behaviour: an England and Australian comparison of flood affected property, Struct. Surv., 22, 2, 84--94, 2004.Google ScholarCross Ref
Index Terms
- Natural Risk and Property Valuation: House Price Gap in Padang
Recommendations
Convertible Bond Underpricing: Renegotiable Covenants, Seasoning, and Convergence
We investigate the long-standing puzzle on the underpricings of convertible bonds. We hypothesize that the observed underpricing is induced by the possibility that a convertible bond might renegotiate on some of its covenants, e.g., an imbedded put ...
Do Earnings Estimates Add Value to Sell-Side Analysts' Investment Recommendations?
Sell-side analysts change their stock recommendations when their valuations differ from the market's. These valuation differences can arise from either differences in earnings estimates or the nonearnings components of valuation methodologies. We find ...
Liquidity Risk and Asset Pricing: The Multivariate GARCH-in-Mean Application
ICEE '10: Proceedings of the 2010 International Conference on E-Business and E-GovernmentIn this paper, the concept of liquidity risk in the sense of asset pricing is discussed firstly, and then all the liquidity risks are analyzed from two different aspects. From the whole market, there are two liquidity risks, namely, market returns ...
Comments