Possible Impacts of Climate Change on Real Estate Sector of Malaysia

There is a growing concern in the recent years about climate change risks on real estates in the developed and developing countries. It is anticipated that property sector could be vulnerable to variable climate and related extremes as well as to combat the greenhouse gas emission. The present paper analyzes the current knowledge of future climate changes to understand their possible impacts on real estate sector of Malaysia with an aim to help stakeholders to adopt necessary responses to reduce negative impacts. The study shows that rising temperature, changing precipitation pattern, and increasing frequency and severity of extreme events may pose risk of property damage and increase property maintenance cost. Constraints in water and energy resources due to climate change may increase the property lifecycle cost. Property price and the overall growth of property sector may be affected for implementing the government policy of greenhouse gas emission reduction up to 40% by the year 2020. The study reveals that property sector of Malaysia will be affected more to implementation of greenhouse gas emission reduction policy in the short-term and due to physical risk posed by variable climate and related extreme events in the long-term.