Location, location, location has been a byword for all parties related to the real estate industry for a long time. This word is still applicable in all situations, even in the country's worst inundation last year. People are now looking for non-flooded locations.

Flooding has become a new decision-making factor to consider when buying a house, acquiring land and approving home loans and it will also affect the design of houses, condominiums and property projects which will all require flood-protection systems.

During the flood, all low-rise projects in flood zones experienced no sales, while those in non-flooded locations experienced usual or lower sales due to the depressed market sentiment. The fourth quarter is generally the most active season for home purchases.

Meanwhile, condominium projects, particularly those in inner city or non-flooded areas experienced better sales.

Property experts and developers analysed some condominium buyers during this period who decided to buy a unit as a second home for flood evacuation. Some appeared to shift from low-rise units in locations severely hit by the flood.

Though the flood has receded, most low-rise developers were in a wait-and-see situation as consumers were clearly not in a mood to buy houses.

This sluggish period may take at least a quarter to resume or until the second quarter of the year.

Some developers do not believe that people whose houses were in a flood zone will shift location.

However, demand for new houses will likely prefer non-flood zones or consumers will likely choose a non-flooded project in an flood-prone zone if they have limited choice or do not want to shift location.

Knowing this, most developers have decided to postpone the launch of new projects located in flood zones to install flood-protection systems in order to build up homebuyers' confidence.

Another reason is that units at their project, with no improvement regarding flood protection, may be ignored. If this happens to a second-hand unit, bargaining power will go to buyers, and this could lead to a decrease in unit prices.

New units may not be able to decrease their prices, as this would mean a loss in profit and possible damage to a developer's brand and image.

Such a case _ a buyer's market and decreased prices _ will definitely happen to an acquisition of new land plots in flooded areas.

It will become a buyer's market for plots in flood zones and a sellers' market in non-flooded locations.

Large developers that have many sites in flood zones and which want to develop a new project will have to freeze new investment in order to prevent cash flow problems.

This is because revenue from housing sales will be lower as selling activity in flood-zone projects is halted. Meanwhile, expenses incurred from project improvement to install flood-protection systems will be higher.

Implementing flood-protection systems has become a new issue facing many developers in order to resume consumer confidence and use a project's selling point.

It covers protection at project site as well as each unit in the project. At project sites, flood protection design includes filling up land levels and main roads in the project.

Developers will also make a small hill at an entrance that will function as a barrier while at the same time strengthening fences that will help prevent water flowing above and beneath ground level.

At each unit, house levels will be lifted and electricity points will be shifted to higher ground. House fences will also be redesigned. The water drainage system will be improved at both common area and individual units.

For condominium projects located in risky areas, power rooms will be raised to a higher level or the second floor.

Flood-protection system has also become a new factor that the Government Housing Bank will consider when approving a home loan to a unit situated in a flood zone.

In the future, there may be new housing designs, with ground floors functioning only as garages and living areas moved to the second floor.

For corporate, office, industrial and retail properties, barriers should be developed and improved. Ground floors may be higher to keep away from floodwater, while generators or electrical equipment will be put on the second floor.

There should be a back-up diesel generator for pumps in case main power is cut off. Property experts also suggests back-up offices, warehouses and logistics centres in other locations.

Besides flood-protection system, after-sales service will become an additional factor homebuyers need to consider.

Some developers have began to expand their business beyond Greater Bangkok, giving more weight to housing development in major provinces and tourist destinations to diversify risk from future floods in Greater Bangkok.