Flood-affected property to hold value
Brisbane’s flood-affected property owners face big discounts on pre-flood valuations if they decide to sell over the next 12 months while some owners will have to wait up to 10 years for their values to return to normal levels, according to one of Brisbane's property researchers.
Lachlan Walker, researcher with Place estate agents, said the Brisbane property market would see a softening in values over the next 12 months, with flood affected homes forced to sell at a discount.
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Flood-affected properties in low-lying areas would be worse off than riverfront properties, he said.
"Riverfront properties are likely to see a period of uncertainty in the short term, however they will recover their value much faster than the non-riverfront properties affected as riverfront properties remain scarce and inherently associated with prestige," Mr Walker said.
Non-affected properties would still hold their value.
"Many homes which were on the market will be removed in order to undertaken renovations to repair flood damage. The result will be positive for those properties and suburbs which were unaffected as less competition will exist," Mr Walker said.
Historically, evidence has shown that Brisbane can recover from last week's disaster.
Following the 1974 floods, Mr Walker said the Brisbane median house price fell from $22,500 in the six months to March 1974 to $20,000 in the September half year, a softening of 11 per cent.
Twelve months on, however, the Brisbane residential market rebounded to produce a median house price of $22,000, in line with the March 1974 half year.
