Tuesday, 1 January 2013

Property prices likely to plunge if damage worsens

Property prices in Bukit Setiawangsa will plunge if the condition of the damaged wall worsens, say real estate agents.

Jane Fong, from Pan Properties, said the price of the affected bungalows in the danger zone could dive by 50% should the wall collapse.

“Nobody will go in and buy anymore. Bank valuation will also be a problem now as they (the banks) will not give out a loan for property there,” she said.

She said a bungalow above the wall costs over RM2mil while a two-storey terrace house in Puncak Se­­­­­tiawangsa costs between RM600,000 and RM700,000.

On houses outside the danger area, Fong said prices were likely to stagnate for awhile but would rebound after a year.

Another agent, Nelson Chan, of Real Estate Finders, who is familiar with Bukit Setiawangsa property, said his clients were worried the incident would drive away buyers.

“It is definitely a concern as the environment of the area will change when repairs start,” said Chan, who estimates a 10% drop in house prices in the area.

He said a Bukit Setiawangsa terrace house costs RM800,000 while a bungalow carries a RM1mil price tag.

“It will be harder now for people to buy a house here as banks will be more hesitant to lend,” added Chan, citing the 2008 Bukit Antarabangsa landslide as an example.

“It is a nice place but the risk is there now.”
Source : CLICK


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