Property buyers in Malaysia must consider climate risks such as flooding and rising sea levels, which can affect property values and lead to costly repairs. Energy efficiency is also crucial, as increased temperatures can drive up energy costs, so look for homes with energy-efficient features.
In this article:
- Assessing Climate Risks
- Prioritising Energy Efficiency
- Futureproofing Against Regulatory Changes
- Financial Implications of Climate Change
As the realities of climate change become increasingly apparent, potential property buyers in Malaysia need to consider new factors. Beyond location and price, climate risks and energy efficiency have emerged as crucial considerations that can significantly impact home ownership’s financial and practical aspects. Here’s what you need to know before making a property investment in these changing times.
1. Assessing Climate Risks
When purchasing a home, it is essential to evaluate potential climate risks such as flooding and sea-level rise. Malaysia, with its extensive coastline and tropical climate, is particularly susceptible to these issues.
Flooding can cause severe damage to properties, leading to costly repairs and even making homes uninhabitable. Dr Mohd Uzir Mahidin, the Chief Statistician, revealed that in 2023, residential areas suffered a loss of RM168.3 million due to flooding impacts.
Rising sea levels are another concern. The National Hydraulic Research Institute of Malaysia (NAHRIM) predicts that if current trends continue, sea levels could rise by 0.6 to 1.2 metres by 2100. This poses long-term risks to coastal properties, which can depreciate over time as the threats become more severe.
Before finalising a property purchase, research the area’s history of flooding and its vulnerability to future climate events. Utilise available resources like government flood maps and climate projections.
Engaging with local real estate agents who are knowledgeable about these risks can also provide valuable insights. Understanding and mitigating these risks can protect your investment and avoid significant financial strain.
Climate change affects us all, and we’re committed to addressing this global challenge. Click to learn more!2. Prioritising Energy Efficiency
Energy efficiency is another critical factor that prospective homeowners should consider. As temperatures rise and weather patterns become more extreme, energy consumption for cooling and heating homes will likely increase. Dr Mohd Hafiz Ibrahim, Senior General Manager of Pendinginan Megajana, highlights that air conditioning accounts for approximately 65% of a building’s energy consumption in Malaysia.
Homes that lack proper insulation or energy-efficient systems will face higher electricity bills, straining household budgets. According to the Energy Commission, households can reduce their electricity bills by up to 5% by using energy efficiently.
When evaluating a property, look for features such as energy-efficient windows, insulation, and modern HVAC (heating, ventilation, and air conditioning) systems. These elements reduce energy consumption and enhance the comfort of your living environment. Additionally, homes with renewable energy sources like solar panels can offer long-term savings and reduce dependency on grid electricity.
3. Futureproofing Against Regulatory Changes
Governments worldwide are tightening regulations to combat climate change, and Malaysia is no exception. In 2020, Malaysia re-introduced the Malaysia Climate Change Action Council. This initiative aims to enhance the country’s resilience and preparedness for climate change and flood impacts while also strengthening the public health sector.
It’s prudent to anticipate that minimum energy efficiency standards may become mandatory in the near future. Properties that do not meet these standards could face costly upgrades and potential penalties.
Therefore, investing in a home that already adheres to high energy efficiency standards can save you from future expenses and ensure compliance with upcoming regulations.
4. Financial Implications of Climate Change
Understanding and mitigating climate risks and energy inefficiency not only protects your home but also has significant financial implications. Properties in high-risk areas may see their insurance premiums rise. Additionally, energy-inefficient homes will incur higher operating costs, impacting your overall financial health.
By choosing a property with a lower risk profile and higher energy efficiency, you can enjoy lower insurance premiums, reduced energy bills, and a more stable investment. Moreover, these features can enhance the resale value of your property as future buyers are increasingly prioritising energy-saving features. In fact, a 2024 survey by PropertyGuru Malaysia revealed that 77% of respondents believe climate change is influencing their property purchase decisions, and 62% think that green buildings will help reduce operational costs.
Interested in properties with green features? Explore the latest projects in Malaysia now!Protect Your Investment
In the face of climate change, homebuyers in Malaysia must broaden their evaluation criteria to include climate risks and energy efficiency. Doing so can protect your investment, reduce future costs, and contribute to a more sustainable living environment. Ensure you do your due diligence, consult with knowledgeable professionals, and prioritise properties that offer resilience against climate change and efficiency in energy use.