IDENTIFICATION OF RELATIONSHIP BETWEEN FLOOD PRONE LOCATIONS AND RESIDENTIAL PROPERTY PRICES USING SPATIAL REGRESSION (CASE STUDY: CAKUNG DISTRICT, KELAPA GADING DISTRICT, AND CILINCING DISTRICT)

• Main Author: Alva Roland D, Nicky
• Format: Final Project
• Language: Indonesia
• Subjects: Masalah dan pelayanan sosial lainnya
• Online Access: https://digilib.itb.ac.id/gdl/view/69395
• Institution: Institut Teknologi Bandung

Flood disaster is a common disaster in the world that can cause direct and indirect losses, such as loss of life, property, and time. Indonesia is the country with the 6th largest number of people affected by floods in the world with a total of 1,794 flood disasters in 2021. DKI Jakarta Province is one of the provinces with floods that occur almost every year, especially in the rainy season. According to the Hedonic Pricing Model (HPM) theory, the flood disaster that occurs has the potential to affect property prices. Therefore, this study was conducted to identify the relationship between flood-prone locations and residential property prices in Cakung District, Kelapa Gading District, and Cilincing District. The three sub-districts were chosen because the area is dominated by commercial residential land use and the high level of flood hazard. This study uses 'closest facility' spatial analysis to measure the distance of the property from the nearest infrastructure and to determine flood-prone residential properties, OLS regression analysis to determine the residential property price model and the influenced factor of residential property prices, also spatial autocorrelation analysis and SAR spatial regression analysis to determine the existence of spatial dependencies in the residential property market in Cakung, Kelapa Gading, and Cilincing. The results showed that the floodprone residential property samples were spread over 7 different commercial housing estates. Research also shows that residential property prices are only affected by the number of bedrooms, building area, distance to the nearest mall, distance to the nearest industrial area, and number of foreigners (demand). Thus, flood-prone locations have no relationship with residential property prices in Cakung District, Kelapa Gading District, and Cilincing District.