What is it about?
This study on flood risk examines the effect of proximity to a flood-prone area on house prices. We found that people’s flood risk perception appears to be limited to Annual Exceedance Probability [AEP 500], and beyond this point, the risk is simply ignored.
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Why is it important?
The aim is to shed light on the link between perceived risk and property values in flood-prone areas as knowing people’s perception boundaries is critical in disaster risk management.
Perspectives
The study found that a notable 10.8% price discount for houses located within an AEP 100 flood zone, a 4.4% discount for houses in an AEP 500 flood zone, and no discounts for houses located outside AEP 500 zones.
Mustapha Bangura
University of Technology Sydney
Read the Original
This page is a summary of: Cognitive limits of perceived flood risk on residential property values, International Journal of Disaster Risk Reduction, November 2024, Elsevier,
DOI: 10.1016/j.ijdrr.2024.104948.
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