A Spatial Hedonic Analysis of The Effects of Swiftlet Farm on House Prices

Abstract

The swiftlet farming industry is fast-growing and contributes to the nation’s economic growth. However, the sector gives rise to adverse environmental impacts related to hygiene, health, and noise issues. Dirty and noisy environments caused by bird droppings and audio systems adversely affect the health and well-being of the surrounding population, making the area less desirable for businesses and investments and causing house prices to fall. Moreover, the limited knowledge and market evidence on swiftlet farming impacts on house prices highlights the importance of the study. The lack of knowledge on the effects of swiftlet farming on house prices may cause inaccurate market interpretations and decisions by property market players. To address the research gap, this study aims to determine the impact of the swiftlet farm on house prices in Johor Bahru. The Hedonic price model analyses ten years of transaction data along with distances from the swiftlet farm on house prices. The study’s findings show a decline in prices for houses located 2,000m from swiftlet farm. The price impact established in this study assists investment, valuation, and buying and selling decisions by the property market players.