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Residential Property Market Hit Hard by Flood, Says Consultant

2 January 2020 12:14 WIB

TEMPO.CO, Jakarta - Coldwell Banker Commercial’s research and consultancy manager Angra Angreni says the recent widespread floods will see the residential property segment hit hard as she argues consumers would likely avoid purchasing properties in areas prone to flooding. 

This situation, she said, will potentially lead to prices being adjusted as consumers would be more stringent in exercising their decisions prior to making a purchase. 

“It would, of course, lead to price adjustment for residential properties that are affected by floods, either secondary or primary,” said Angra on Wednesday, January 1. 

Damaged facilities and infrastructures from floods will affect developers as they would have to spend more on repairs, which she said will certainly not be cheap. 

“Developers must spend more money to construct, distribute materials, and other forms of repairs,” she said. 

Even if true, she also called for housing developers to no longer use the “free of floods” gimmick as access to the residential property’s vicinity will potentially be hampered by floods. She reminds that it would be better for developers to implement ways to prevent floods, among others, in the form of constructing open green spaces or manmade lakes. 

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