Monsoon Surge: Will it dampen the demand for landed homes in areas with flash floods?

A recent monsoon surge, which began on 10 January, brought flash floods to parts of Singapore and Johor. Monsoon surges typically involves bursts of cold air from Central Asia, triggering heavy showers and thunderstorms in regions like Singapore, Malaysia, and Vietnam. This year’s surge has been particularly intense, with rainfall on 10 and 11 January alone surpassing what Singapore usually receives for the entire month.

Flooding at Jalan Seaview: Impact on Landed Homes?

On 10 January 2025, a combination of the monsoon surge and high tide caused flooding along a stretch of Jalan Seaview—an area zoned for two-storey, semi-detached landed homes. Unsurprisingly, residents are concerned about the inconvenience and potential property damage. The question on many minds is whether these floods will dampen demand for landed homes in the area, especially given Singapore’s limited land supply and the general desirability of landed properties for both investment and owner occupation.

Demand Remains Resilient

According to DataSense Demand Analytics, the median price of landed homes in District 15, where Jalan Seaview is located, has been steadily rising. This upward trend appears to be unaffected by the recent floods, as shown in Figure 1.

Figure 1: Demand Median Price Trend of Landed Homes in District 15 (In Rest of Central Region)

Meanwhile, Figure 2 shows that the median rent for District 15 landed homes has remained stable.

Figure 2 : Demand Median Rent Trend of Landed Homes in District 15 (In Rest of Central Region)

Together, these insights suggest that flash floods do not appear to factor heavily into the decision-making of property seekers—at least not yet. When taking a closer look at landed homes along Mountbatten Road shown in Figure 3, near where the floods occurred, it seems the local property market is driven more by fundamental market forces than by concerns over flooding.

Figure 3: Total number of views of landed home listings along Mountbatten Road

Johor Floods: Widespread Impact, But Demand Still Strong

The heavy rains have also affected many families in Johor, Malaysia. According to the National Disaster Management Agency, 3,295 individuals—including 960 families—were impacted in districts such as Kota Tinggi, Kulai, Johor Bahru, Kluang, and Pontian.

Rising Demand Amid Economic Growth

While Johor continues to face challenges from frequent monsoon floods in past years, demand and prices for homes in Johor have been on the rise throughout 2024. This upward trajectory can be attributed to the Special Economic Zone initiatives and ongoing construction of the RTS (Rapid Transit System) link to Singapore. Even among flood-hit districts, Johor Bahru ranks highest in weighted views (Figure 4), followed by Kulai and Kluang.

Figure 4: Top City/Area by Demand Index (Weighted Views) for Terraced Homes in Johor in December 2024

Median prices for terraced homes hover around RM 698,000 in Johor Bahru and RM 480,000 in Kluang. Adjusting for the number of property listings using the PropertyGuru Market Index reveals Pontian, Batu Pahat, and Kota Tinggi as high-interest districts. Clearly, short-term flood issues haven’t stopped buyers from eyeing these emerging hotspots.

Key Takeaways for Property Seekers

Malaysia

• Flood Insurance: Flood coverage is not always standard; consider adding an insurance rider.
• Flood Reports: Purchasing flood reports or consulting local authorities can help identify and mitigate risks.

Singapore

• A Glimpse of Rising Sea Levels: The Jalan Seaview flood highlights future scenarios if storms become more intense and frequent.
• PUB’s Flood-Prone Areas: Homebuyers should check with PUB for the latest flood-prone zones and factor in flood-resistant designs or materials.

Preparing for Climate Change

Singapore’s third national climate change study projects heavier, more frequent storms, which could lead to an increase in flash flooding events. Both Singapore and Malaysia property seekers should thus budget for resilience measures, such as installing flood barriers or waterproofing. In the face of rapid urbanisation and environmental shifts, being proactive about climate and flood risk can help protect both your investment and peace of mind.

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