Parts of Petaling Jaya were hit by flash floods for the third time this year on July 18. (Facebook pic)PETALING JAYA: A real estate group says recurring floods in Petaling Jaya are fundamentally affecting property prices and damaging the city’s reputation as a prime commercial hub.Torrential rain triggered flash floods across parts of the Klang Valley last week, including parts of Petaling Jaya – some of which were inundated for the third time this year.The Malaysian Institute of Estate Agents (MIEA) said it was “deeply concerned” by the recurrent and intensifying flood pattern, which it said is permanently reshaping the valuation of Petaling Jaya’s commercial real estate market.Kelvin Yip.MIEA president Kelvin Yip said properties that have suffered repeated flooding are seeing their capital values decline below market averages as buyers factor in repair costs and higher insurance expenses. Ground-floor retail outlets and showrooms in Petaling Jaya are facing rental stagnation or reductions, while upper-floor units remain relatively stable, creating a two-tier market within the same building.“This is no longer a freak occurrence but a seasonal risk factor… PJ’s reputation as a prime commercial hub is being affected,” he said.“The current infrastructure is clearly overwhelmed, and we urge local authorities to prioritise upgrades to drainage master plans and enforce stricter development guidelines.
High-ground and flood-resilient properties will command a ‘safety premium’ and low-lying assets will face gradual depreciation each year until infrastructure improvements catch up.”He said recurring floods could lead to long-term erosion of property values as banks impose stricter loan approval criteria for commercial properties in flood-prone areas, further dampening demand. Yip added that multinational tenants would potentially seek flood-risk clauses in tenancy agreements, which could weaken landlords’ bargaining power.He also pointed to changing tenant preferences, with F&B and retail operators increasingly avoiding ground-floor units in flood-prone areas of Petaling Jaya, opting instead for locations with more reliable drainage systems. Yip added that investors are prioritising properties with elevated loading bays and flood-free access roads, noting that those without such features are experiencing longer vacancy periods.Kashif Ansari.Kashif Ansari, co-founde…
Summary from source