news

Flood-affected property to hold value

By webmaster

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.

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.

Flood-affected property to hold value
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%