PETALING JAYA: The gas pipeline explosion in Putra Heights is expected to cause a temporary decline in property demand and prices, particularly in areas closest to the disaster site, said an expert.
Universiti Teknologi Malaysia property economics and finance associate professor Dr Muhammad Najib Razali told theSun that affected homes could see a price drop of up to 20% due to safety concerns, long-term risks and buyer hesitation.
“It follows similar cases in Malaysia where industrial disasters and infrastructure disruptions have weakened buyer confidence and slowed real estate activity.
“Transaction activity in the area is likely to slow down as potential buyers conduct more due diligence and assess the risks of purchasing homes nearby.
“As a result, properties may stay on the market for longer periods, reducing demand. While nearby areas outside the explosion zone may not experience the same level of price drop, the overall demand for homes in Putra Heights and its surroundings could shift,” he said, adding that the buyers may re-evaluate safety concerns and opt for homes in locations perceived as less affected by industrial infrastructure.
ALSO READ: Blaze sparks calls for full disclosure on gas pipelines
Muhmmad Najib said a short-term price correction of 15% to 20% is likely in the immediate vicinity of the pipeline explosion. However, he said long-term recovery will depend on remediation efforts, regulatory actions and the restoration of buyer confidence.
“Fire damage can lead to temporary property devaluation of 10% to 30%, with recovery influenced by public perception and market sentiment.
“In 2014, an industrial fire in Sungai Buloh damaged warehouses and homes. Although direct devaluation figures were not widely recorded, concerns over long-term risks led to a temporary decline in demand. As cleanup and recovery progressed, the impact on property values gradually faded.”
Muhammad Najib said the timeline for restoring fire-damaged homes varies depending on the extent of destruction. For minor fires affecting interiors or surface, he said finishes may require four to eight weeks of repairs.
However, he said in cases of severe structural damage, including compromised wiring and utilities, such as in the Putra Heights blaze, it could take six months to over a year for full rehabilitation.
ALSO READ: Putra Heights fire: Losses, property damage estimated at RM65.4 mln - Amirudin
“Recovery from severe property damage often takes months or even years, as seen worldwide. The 2010 San Bruno gas explosion in the US required repairs lasting six to 18 months, while the Sungai Buloh industrial fire took six to 12 months.
“Such incidents reflect the complexity of fire recovery, which involves inspections, approvals and insurance processes that can significantly delay reconstruction.”
Muhammad Najib also said renovation costs for homes affected by the blast will vary depending on the level of damage, adding that major repairs would include structural checks and replacement of plumbing and electrical systems.
“The estimated cost ranges from RM150,000 to RM300,000, but could increase by 20% to 30% due to inflation and rising material costs caused by global tariffs.”
He added that the impact of US tariffs on essential materials such as steel, lumber and construction equipment could further inflate
repair costs.
However, Muhammad Najib assured that property values can recover as conditions stabilise, rehabilitation efforts take place and public perception improves.
