Volatility of market price trends for coastal erosion properties and properties along the coastline

• Published in: GEOGRAFIA-MALAYSIAN JOURNAL OF SOCIETY & SPACE
• Main Authors: Mohsen, Masfaliza; Tawil, Norngainy Mohd; Maulud, Khairul Nizam Abdul; Sahi, Siti Rosemawar Mohd; Zaki, Zulkhairy Affandy Mohd
• Format: Article
• Language: Malay
• Published: UNIV KEBANGSAAN MALAYSIA, FAC SOCIAL SCIENCES & HUMANITIES 2025
• Subjects: Social Sciences - Other Topics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001446696800010
• ISSN: 2180-2491; 2682-7727
• DOI: 10.17576/geo-2025-2101-10

Coastal erosion is a global problem that has an impact on the market price of real estate as well as direct and indirect impacts on countries, communities and the environment. The coastal zone in Malaysia is 4,809 kilometres long, and it is estimated that more than 30 percent of the beach's length is affected by coastal erosion. Johor is the second highest in Malaysia to experience coastal erosion, with a total distance of 234.8 km, and the state has the highest number of coastal erosion areas involving 29 locations. Previous research findings have shown that the effects of coastal erosion have decreased property value, especially near the coastline or in areas prone to erosion risk. Previous research findings have shown that property prices decline between 1 percent and 52 percent depending on distance and erosion rates. The research aims to measure the market price trend of properties affected by coastal erosion. Next, the difference trend between the market price of properties affected by coastal erosion and those located on the coast will be analyzed. The Quantitative Method is used as a research method for data collection. Data on property transfer price transactions obtained from the Department of Valuation and Property Services (JPPH) Malaysia was collected and analysed to measure the trend of market price movements of properties affected by coastal erosion and those located on the coast for 15 years (2009 to 2023), focusing on the Batu Pahat involving Mukim Minyak Beku, Kampung Bahru, Sungai Punggor and Sungai Kluang. Research findings during the period 2009 - 2023 (15 years) prove that the transfer price of coastal erosion property is 32.88 percent to 92.54 percent lower than the transfer price of coastal property except in 2013, 2016, and 2017, which showed the opposite result. This proves that coastal erosion drastically affects the market price of properties in the Batu Pahat district. This research is expected to provide an understanding to the public and real estate industry players regarding the market value of coastal erosion real estate.