The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia

Objective – In this study, the impact of earthquake/tsunami threat on land prices is measured using the Hedonic Price Method (HPM). The location of the research is in Padang, West Sumatra. The subject of study is land owners who purchased their land later than September 30, 2009. Methodology/Technique – The linear model and Double-log model with Ordinary Least Square (OLS) are used to estimate variable. Findings – The findings reveal that the Linear model have five variables with a significant effect. Those variables are: (1) Environmental quality, (2) Distance to the seafront, (3) Distance to educational facilities, (4) Availability of clean water and (5) Position of the land, whereas the double-log model also have 5 variables: (1) Distance to the seafront, (2) Distance to educational facilities, (3) Access to evacuation routes, (4) Availability of clean water and (5) Position of the land. Novelty – The possibility of earthquake and tsunami threat in the future has raised a new parameter associated with the environment in the city of Padang, namely land distance towards the seafront. The findings of the study contribute the understanding in land pricing. Type of Paper: Empirical.