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Prices in flood zones to be hit

Land prices in flooded areas show signs of slumping 20-30 per cent and staying there for two or three years before returning to normal, according to Colliers International (Thailand) Co.

Patima Jirapate, managing director of the real-estate agency, said in a group interview yesterday that the new metropolitan master plan would not be amended to add more floodways because it already passed a public hearing last month before the flood invaded inner Bangkok.

The plan, which will now go into effect next year, already includes a third floodway on Rama II Road in Bang Khuntien district.

The existing two floodways – one for eastern Bangkok in Klong Sam Wa and Min Buri districts and one for western Bangkok in Bang Khae and Taling Chan – are carryovers from the previous city plan.

After the flood this year, home-owners will not move to other locations but they may buy a second home to support themselves when faced with an unexpected situation, he said.

Residences priced between Bt1 million and Bt10 million continue to be in demand as a second home, especially those close to mass-transit lines such as the Skytrain and subway or in nearby cities such as Hua Hin and Pattaya.

Retail businesses will continue to grow but they will change their business models, Patima said. They will adopt the smaller scale of community shopping centres. They will separate their distribution centres and have more than one because they were hit hard when the flood incapacitated their sole centre.

They will also modify their logistics systems.

Industrial estates have suffered tremendously from this flood to the tune of more than Bt300 billion. They will develop barriers to protect their properties from inundation and also set up back-up production facilities, warehouses and logistics systems to support manufacturing when faced with a flood or other natural disaster, Patima said.

Source: The Nation

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