Value of buildings in volcanic vulnerability: A calculation concept

Abstract

Indonesia has diverse geographical conditions in each region that causes different impact in assessing real estate value, one of which is the active mountains especially in Ternate, North Maluku. This research discusses the experience of volcanic hazards that influences the model of cost valuation method in building. Drawing on technical calculation, the paper first examines the historical volcanic hazard at Mt. Gamalama, Ternate, Province North Maluku. This work also introduces in how volcanic vulnerability requires a specific approach to play complementary roles in appraising the real value of a building. Following cost approach method, by computing the specific formula to determine the characteristic of a building which directly related to its depreciation, this model predicts the implications of the expected value of a building which is typically located in the volcanic vulnerability.