Flood risk awareness and property values: evidences from Seoul, South Korea
Jihun Oh and
International Journal of Urban Sciences, 2021, vol. 25, issue 2, 233-251
There is ongoing debate about flood risk discounts regarding property values. While some researchers claim that housing prices reflect flood risk, a growing body of literature has shown that flood risk is quickly forgotten after a flood event, and risk discounts are minimal in the long term. This study provides new evidence of flood risk discounts, with an emphasis on the role of flood risk awareness based on the case of Seoul, South Korea. This paper empirically examines how flood risk discounts vary depending on past flood experiences, and analyzes whether they are affected by the disclosure of inundation hazard maps. According to the results, flood risk discounts are disproportionally higher in districts with severe past flood experiences, but interestingly, there is no evidence that negative disclosure effects of hazard information on property values exist. These findings imply that home buyers carefully consider flood risk in their housing transactions in high flood risk areas, even before hazard maps become available, possibly because having flood insurance is rare in South Korea. Understanding the relationship between flood risk awareness and risk discounts in terms of property values has vital implications for disaster management policies as they relate to cities’ resilience.HIGHLIGHTS The flood risk discount in property values could be affected by the risk awareness.The risk discount is disproportionally high in areas with severe flooding experience.Negative disclosure effects of hazard map on property values do not exist in Seoul.Hazard disclosure could be actively used considering the level of the risk awareness.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:rjusxx:v:25:y:2021:i:2:p:233-251
Ordering information: This journal article can be ordered from
Access Statistics for this article
International Journal of Urban Sciences is currently edited by Dongjoo Park and Mack Joong Choi
More articles in International Journal of Urban Sciences from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().