This paper presents evidence of distressed property spillover in coastal flood-prone areas. By utilizing a hedonic pricing model, this study may contribute to the global discussion on how property markets react to deterioration in coastal areas, specifically from the perspective of the Global South. Spillover effects in housing prices were observed through a spatial autoregressive model by investigating lags in price adjustment over time and space. The authors employed two large datasets comprising property information, including property tax history (n = 1933,037; 1993–2020) and real estate transactions (n = 1029; 2013–2020). These datasets are also recorded in the cadaster map of the Indonesian government. The property tax history provides crucial evidence regarding delinquent taxes, signifying distressed properties abandoned by their inhabitants. Property sales transaction data offers evidence of lowered prices and their spillover effects. As a result, this paper contends that neighborhood decay induced by coastal flooding represents a non-economic shock that permeates to the property market, leading to price movement. The most important finding is that land subsidence has a more significant influence than distressed properties on lowering prices and their spillover effects. These findings have the potential to initiate new discussions about environmental deterioration from a property market perspective.

中文翻译：

---

不良房产和溢出效应：房地产价格对沿海洪水风险的反应研究


本文提供了沿海洪水易发地区不良财产溢出的证据。通过利用享乐定价模型，本研究可能有助于全球讨论房地产市场如何应对沿海地区的恶化，特别是从全球南方的角度来看。通过研究价格调整随时间和空间变化的滞后性，通过空间自回归模型观察到房价的溢出效应。作者使用了两个包含财产信息的大型数据集，包括财产税历史 （n = 1933,037;1993-2020） 和房地产交易 （n = 1029;2013-2020）。这些数据集也记录在印度尼西亚政府的地籍图中。财产税历史提供了有关拖欠税款的重要证据，表明居民遗弃了不良财产。房地产销售交易数据提供了价格下降及其溢出效应的证据。因此，本文认为，沿海洪水引起的社区衰败代表了渗透到房地产市场的非经济冲击，导致价格波动。最重要的发现是，地面沉降对降低价格及其溢出效应的影响比不良房产更显着。这些发现有可能从房地产市场的角度引发关于环境恶化的新讨论。