Banks Homebuyers May Now Be Wary About Gas Pipelines Says Consultant


 Henry Butcher says valuers will also consider the location of gas pipelines when coming up with the open market value of properties.
The explosion from the April 1 gas pipeline blaze in Putra Heights destroyed 81 homes, partially destroyed 81 and affected 57 others.
PETALING JAYA: Financial institutions might want to establish whether there are gas pipelines running close to the properties they are being asked to finance in light of the Putra Heights blast, says property consultant Henry Butcher.
In its quarterly newsletter for the second quarter of the year, Henry Butcher also predicted that potential house buyers will now ask whether the properties they are considering buying are located close to gas pipelines.
“Property valuers will also consider the location of gas pipelines when coming up with the properties’ open market value,” said Henry Butcher Malaysia chief operating officer Tang Chee Meng.
“(They) will then make the necessary adjustments to the properties’ value, just like for properties which are located close to flood-prone areas, high-tension wires, cemeteries, steep slopes, oxidation pond/sewage treatment plants, or other negative elements.”
The explosion from the April 1 gas pipeline blaze destroyed 81 homes, with 81 others categorised as partially destroyed and another 57 affected but not suffering any structural impact.
It was previously reported that the damage to the residential homes could amount to RM65.4 million.
Last week, the Malaysian Institute of Property and Facility Managers (MIPFM) said property values in and around the site of the underground gas pipeline explosion in Putra Heights may decline by between 5% and 20% in the short term.
In a New Straits Times report, MIPFM president Ishak Ismail said a similar situation was observed in Shah Alam after the devastating floods which hit the area in late 2021. - FMT


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