Will landslides in Penang Hill affect the property prices in Penang?

Will landslides in Penang Hill affect the property prices in Penang?

Landslides affected 13 locations in Penang Hill. No casualties reported.

Home owner insurance
Penang Landslide
Photo: The Star

The last major landslide in Penang was in Sep 2008 where two landslides were reported along Jalan Tun Sardon which caused the road that links to Paya Terubong and Balik Pulau (my hometown) to be closed for around 4 hours.

Yesterday, the heavy downpour caused at least 13 locations impacted with landslides. Fortunately no casualties were reported. At the same time, Tanjung Bungah residents were worried on the mud tumbling down the hill at Solok Tanjung Bungah near Straits Regency Condominium.

Therefore, property buyers have to beware that there are risks of landslides properties near or next to the hill. The irresponsible developers may not have proper plan when carrying out their projects and this is an example of the consequences. Although the government has prepared the Act to ensure that proper guidelines is followed by the developer to prevent the landslides, but the issue still exists.

For this reason, whether you are a home buyer or a house owner, securing your home is important. Investing in property with loan must include home insurance. Such a combination of home loan with home insurance provides cover to both the insured and the property.

Included in this home insurance provision for natural disasters including landslides, flood, loss of property and damage to the building and/or its contents. In addition to that, there is an option of insuring every single item in the house, to even the smallest items in the house for loss due to burglary or fire.

Hence, in conclusion, investing in a property must include insuring your home for a piece of mind.

The next question is will the property prices in the whole of Penang collapse like the landslides? There is no straight answer to this question. But be assured that the government will perform measures to prevent major landslides especially with locations with big projects and developments. They should be making stricter rules for all developers to follow to implement landslides measure especially for hill side developments.

So in essence, the properties in Penang will continue to move upwards as the developer might spend more money on the prevention measures that would ultimately be passed to the buyers or the investors. On a positive note, the new properties with the preventive measures implemented, the owners can feel a bit safer. The lack of land in Penang Island would also push up the prices of properties.

 

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