IMPACT OF FLOODING DUE TO CLIMATE CHANGE

Abstract

In 2019 National Day Rally Speech, Singapore Prime Minister Lee Hsien Loong warned the nation on the climate change issue as one of the gravest challenges post to Singaporeans. Rapid raising temperature and sea level accompanied with a heavy rainfall, make flooding inevitable in Singapore, especially in the central region. This effect of climate change and flooding will be long lasting and estimated to increase in occurrence and impact in the long-run. In this paper, we aim to analysis if flooding impact on private properties due to climate change risk has been accounted for in the property values. This result is achieved through a causal-comparative research which measures the effects of the independent variables on dependent variable, without any manipulation from the researcher. The research data was collected from Singapore government authority board, Public Utility Board and Urban Redevelopment Authority. Hedonic pricing model was created to assess the correlation between flooding impact due to climate change on private residential properties. This study also investigate the impact (i) prime location and (ii) effective flood management by government have on property prices. We conclude flood variable is positively correlated with property values due to the net positive locational attributes and tenure coefficients.