Risk perception and property value: Evidence from Tianjin port explosion

Yaoxuan Huang, Tsz Leung Yip, Cong Liang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

This paper aims to investigate the perceived risk after the Tianjin port explosion event and its impact on property value. In addition to focusing on the relationship between homebuyers' risk perception and property sales price, this paper also considers the risk perception of property sellers via the sale-to-list ratio. By using the difference-in-differences method and the sample from the property agent, we found that the explosion event generated a long-time effect on the public and property market in the city of Tianjin. Relative to those properties far away from the explosion site, the sales price and the sale-to-list ratio of the property near the explosion site were detected to have significant drops for the first six months after the explosion event. The temporal decrease of the relative sales price and the sale-to-list ratio are the evidence of short period overreaction from the public, which decays over time. This study demonstrates an indirect method to estimate the perceived risk of the general public and provides valuable insight into sustainable port management policies.

Original languageEnglish
Article number1169
JournalSustainability (Switzerland)
Volume12
Issue number3
DOIs
Publication statusPublished - 1 Feb 2020

Keywords

  • Difference-in-differences
  • Property value
  • Risk perception
  • The housing market
  • Tianjin port explosion

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

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