Demand for new residential projects is seen surging after the recent flooding experienced in Metro Manila as affected families look for a new and safer place to live, said real estate consultant CB Richard Ellis.

Interest in the affected areas will also pick up after restoration efforts have been completed, CBRE research head Victor Asuncion said.

Asuncion said developers should learn to respect the topography of land.

‘You have to respect nature the natural topography of the land. Usually when a river eats up on the land, developer tries to recover the land. You should not restore it,’ said Asuncion.

Asuncion said developments in flood-prone areas will attract less interest as buyers become more discerning.

Existing projects would have to rely on interest from the secondary market in order to gain buyers. But this could be temporary as Filipinos tend to have a ‘short memory,’ Asuncion said.

‘There will be an increase in demand but this will be location specific. The areas affected will recover depending on the speed of cleanup,’ said Asuncion.

‘This will also depend on the effort put up by the local government for precautionary measures,’ he added.

‘But all this is a learning experience,’ he said.

Leading developers said the effects of the floods will be minimal.

Ayala Land Inc. chief finance officer Jaime Ysmael said the flooding can affect the industry ‘to a certain extent’ but only for a while.

SM Prime Holdings Inc. chief finance officer Jeffrey Lim said while SM Sta. Mesa was suffered from the floods, with waters reaching the ceiling of the basement, the effects are on the mall management level.

Tenants were also affected but most of them are covered by insurance, he said.

Robinsons Land Corp. president Frederick Go said only Robinsons Metro East mall was reported affected by the floods.