Maginal price of urban flooding in Ho Chi Minh City

Abstract

This study applies hedonic price function to estimate the effect of urban flooding of Ho Chi Minh city. Instead of using the sale price, this study alternatively uses the rental price from three commercial banks located in Ho Chi Minh City as the dependent variable. The explanatory variables are structural characteristic, locational characteristic and flood risk existence. The result shows that the structure of house has positive correlation with the rental price, the location of real estate gives the negative effect on rental price and the flood risk existence makes the rental price decrease. As the result of this, the marginal price of urban flooding of Ho Chi Minh City is -8,570,172 Viet Nam Dong in mean value of variables.