Values of flood-affected properties likely to fall

Most homeowners residing in flood prone areas are worried that property values and rental prices will likely fall.

Several property experts have mixed views on the matter, as to whether the values will drop or if it is just a premature reaction.

“It's already clear in people's minds which areas are flood-prone. This could dampen demand and prices for these places,” said Eugene Lim, Asia-Pacific associate director of ERA. He added that values of both commercial and residential premises could plunge between 10 percent and 15 percent.

While it is very unlikely that owners will rush to sell their properties, “potential rental values” in the areas including Telok Kurau, Thomson and Opera Estate, “could possibly be affected”, he added.

“There's always a risk that flooding will damage cars, paintwork, plants or cause the electrical system to short circuit, something which tenants will bear in mind,” said Mr. Nicholas Mak, a property lecturer from Ngee Ann Polytechnic.

Mr. Faiek Peck, an affected tenant said, “We're discussing with the owner whether we can get out of the contract or not ... If he's not willing to improve the situation to do something to prevent it again, we've got to see what we can do, get lawyers involved and get out of here.”