Salience of Hazard Disclosure and House Prices: Evidence from Christchurch, New Zealand (Job Market Paper) [Draft]
Taking advantage of the land liquefaction zoning, known as the Technical Category (TC) zoning, following the 2010-2011 earthquake sequence (EQS) in Christchurch, I estimate the impacts of precise salient earthquake hazard information on property values. Using the property transaction data from 2000 to 2008 in the City of Christchurch, I first verify that the inherent liquefaction hazard was not capitalized before the 2010-2011 EQS. Next, exploring the property transaction data that spans 7 years before and after the TC zoning from 2005 to 2018, I find that the EQS prepared the market for a price change to liquefaction hazard. The area-wide TC zoning clarified the relative liquefaction hazard risks and reinforced the price change. Over the 7 years after zoning, average property values declined significantly by 20% in TC3 (high liquefaction risk areas), and 7% in TC2 (medium liquefaction risk areas). Pricing of housing is also found to incorporate the TC information quickly. Moreover, property values increased with distance to residential red zones (areas where liquefaction damage was beyond economical repair) the most in TC3 after the EQS.
Is there a Slope Discount? (With Geoffrey Hewings)
This paper focuses on the physical attributes of land that intrinsically confine land use and possibly affect land values, land slope. In particular, we investigate if there is a slope discount to land price and address the role of land slope in forming more reliable constant quality land price indices and aggregate house price indices. We find while land slope discounts the unit land price, it has a small effect on quality-adjusted land price indices in selected neighborhoods in Auckland, New Zealand, where sloped terrain is common.
Does Proximity to School Still Matter Once Access to Your Preferred School Zone Has Already Been Secured? (With Sandy Dall'erba) - Journal of Real Estate Finance and Economics, Forthcoming
This paper examines the relationship between proximity to secondary schools and property values within three school enrollment zones in Auckland, New Zealand. Results indicate that, in the most sought-after school zones, house prices increase with proximity to school but decrease above 3.66 km. Moreover, we find that the nonlinear effects are most prominent at the lower quantile of the sales price distribution. In the other two school zones, proximity to school reduces house prices. These results demonstrate that distance to school still matters within each school enrollment zone.
WORK IN PROGRESS
Locally Weighted Quantile Price Indices: Evidence form New Zealand
Impact of Unexpected Natural Disaster on Retirement
Spatial Spillover Effects of Hazard Zoning