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Property values in and around Putra Heights could decline by between 5% and 20% in the aftermath of the recent underground gas pipeline explosion, according to industry experts
The affected residential area, which largely comprises double-storey terrace houses, typically sees home prices ranging from RM650,000 to RM850,000.
According to the New Straits Times, based on current projections, properties valued at RM850,000 could lose up to RM170,000 in value, while RM650,000 homes may depreciate by as much as RM130,000.
Malaysian Institute of Property and Facility Managers (MIPFM) president Ishak Ismail said public perception plays a significant role in influencing short-term value.
Ishak cited the Shah Alam floods in 2021 as an example, where property prices were initially impacted before state-led mitigation measures helped stabilise the market.
"As in that case, public perception could drive a drop in property values in Putra Heights, but the actual impact will only become clear once property transaction records for the next six months are available," he said.
He added that these records — which reflect banking, ownership transfer, and stamp duty data — usually take about four months to materialise in official market statistics.
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The explosion and fire on 1 April, caused by a gas leak, affected 364 victims from 74 families and damaged 437 homes in Putra Heights
Selangor police chief Datuk Hussein Omar Khan said the total property losses were estimated at RM64.5 million.
According to Ishak, public concerns over safety, liveability, and health risks in the wake of the blast could lead to short-term devaluation.
He stressed the need for immediate repairs and stronger safety protocols to restore confidence.
Universiti Kebangsaan Malaysia (UKM) senior lecturer Dr Sharizal Hashim echoed the sentiment, estimating possible value drops of up to 30% in a worst-case scenario — particularly for homes located in the immediate blast zone.
"For example, double-storey houses in the explosion zone valued between RM700,000 and RM1.3 million could see a drop of RM210,000 to RM390,000 if the decline reaches 30%," he said.
Sharizal urged collaboration between the government, developers, insurers, and PETRONAS in developing a comprehensive recovery plan. He also called for a review of existing SOPs, stating that current safety procedures may no longer be adequate for today's development pace.
Meanwhile, Universiti Teknologi Mara (UiTM) senior lecturer Dr Mazlina Zaira Mohammad said the incident could have both direct and indirect impacts on property prices, especially in the short term
"Buyers and investors may now lack confidence in the safety and utility infrastructure in the area, which will likely suppress property demand for the time being," she said, adding that sellers may have to lower asking prices to attract cautious buyers.
However, she noted that long-term recovery is possible within six to 24 months if the situation is handled transparently and preventive measures are introduced.
"Putra Heights still holds strong appeal due to its accessibility, public amenities, and surrounding developments," she added.
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