Resilience Tested: Interplay between Mortgage Channels and Natural Disasters on Housing Price

Ariyanto Adhi Nugroho (), Yunastiti Purwaningsih (), Lukman Hakim () and Suryanto Suryanto ()
Additional contact information
Ariyanto Adhi Nugroho: Universitas Sebelas Maret
Yunastiti Purwaningsih: Universitas Sebelas Maret
Lukman Hakim: Universitas Sebelas Maret
Suryanto Suryanto: Universitas Sebelas Maret

International Real Estate Review, 2024, vol. 27, issue 4, 537-563

Abstract: The existing body of literature on the interaction between mortgage channels and natural disasters on housing prices is limited. As a vast archipelagic nation, Indonesia is highly susceptible to natural disasters. Our research utilizes quarterly data from Indonesian provinces between 2012 and 2019, and employs panel regression to evaluate the influence of mortgage channels and natural disasters on housing prices. The results indicate varying impacts on housing prices based on the type and intensity of natural disasters, alongside regional development, which remain robust under various tests. Despite potential disruptions, the overall availability and effects of housing loans on housing prices remain relatively stable, thus highlighting the significant role of mortgage channels in shaping housing prices under different circumstances. This understanding has the potential to guide stakeholders in enhancing disaster management strategies and overseeing housing prices, and takes into consideration the distinct vulnerabilities found in each region. Due to the unpredictable nature of natural calamities, it is crucial to establish plans for pre-disaster strategies. Using risk-disaster clusters allows the government to customize housing policies based on particular vulnerability categorizations instead of utilizing a standardized approach nationwide. Additionally, the financial sector has the opportunity to integrate regional risk assessments in the decision-making process for the distribution of housing loans.

Keywords: Housing price; Mortgage channel; Natural disasters; Regional factors (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.gssinst.org/irer/wp-content/uploads/202 ... ng-Price-Nugroho.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ire:issued:v:27:n:04:2024:p:537-563

Ordering information: This journal article can be ordered from
Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850
https://www.gssinst.org/gssinst/index.html

Access Statistics for this article

International Real Estate Review is currently edited by Professor Sing Tien Foo and Professor Ko Wang

More articles in International Real Estate Review from Global Social Science Institute Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850.
Bibliographic data for series maintained by IRER Graduate Assistant/Webmaster ().