Echten, Sander (2023) Shaking up the Market: Assessing the Effects of Earthquakes on Real Estate Prices in Groningen. Master thesis.
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S. Echten RE master thesis (s4090047).pdf Download (1MB) | Preview |
Abstract
This master's thesis examines the impact of earthquakes on property transaction prices in Groningen from 2009 to 2018. The focus is on analysing the relationship between transaction prices, peak ground velocity (PGV), timing of transactions, property characteristics, and buyer origin. The findings shed light on several key aspects of the local housing market. The study reveals a significant negative relationship between cumulative PGV and transaction prices, supporting the hypothesis that an increase in PGV leads to a decrease in property prices. These findings are consistent with previous studies on the decline in property values following natural disasters. Furthermore, the analysis of transaction timing indicates that property prices were significantly higher before 2012, the year in which the Huizinge earthquake occurred. In the years following the earthquake, prices either decreased or remained stable. However, from 2016 onwards, property prices began to increase again relative to 2012. It is important to note that these results primarily reflect general housing market conditions rather than a direct causal relationship between earthquakes and property prices. This research demonstrates that the effect of PGV on house prices is not highly dependent on the specific time period under consideration. Additionally, the study explores the influence of property characteristics, such as location in Groningen, property type, floor space and size of the lot, on transaction prices. Overall, this thesis contributes to a deeper understanding of the factors influencing property prices in Groningen and provides valuable insights into the impact of earthquakes on the local housing market.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Mawhorter, S.L. |
| Date Deposited: | 06 Sep 2023 11:51 |
| Last Modified: | 06 Sep 2023 11:51 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4372 |
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