Property value in flood-prone areas could suffer if problem not fixed

Source : Channel NewsAsia – 21 Jul 2010

Property watchers have warned that the value of developments in flood-prone areas could suffer if the problem of flooding is not fixed.

They said prices and rental rates for residential and commercial properties could fluctuate if the problem continues for another three months. This may force businesses to move out.

Landlords may have to lower rent or take measures to prevent flooding to attract tenants.

Some buyers are now asking about the risk of flooding when they check out a property, including those that are not directly hit.

Executive director of Residential Projects, Orange Tee, Steven Tan, said: “In the past, this was never an issue. Now we can see that they are starting to have a concern whether the condominium or house that they want to buy will encounter this problem.”

Nicholas Mak, Real Estate lecturer at Ngee Ann Polytechnic, said: “Even if the property is not prone to flooding, but just because it is near another property that often suffers flooding whenever it rains, it could be guilty by association and its value could also be adversely affected.”