Your Property News March 2022

Following the Brisbane floods in 2011, the city’s dwelling values sustained a decline from January 2011 to January 2012, which bottomed out at -6.1%. This decline kicked into recovery mode off the back of several cash rate reductions from November 2011. However, it was not until March 2014 that the dwelling market fully recovered the value recorded in December 2010.

Although the 2011 floods saw inundated suburbs recording a larger downturn relative to the Brisbane average in the year following the flood, most suburbs saw a recovery in prices within three to five years with riverside precincts still attracting premium values over areas located further from the river prior to the latest flooding event. Australians have historically placed a high value on housing within close proximity to the water; whether this trend changes based on forecasts of more frequent severe weather events is yet to be seen.

Perhaps one of the biggest differences between the market in 2011 and 2022 is the length of time between these devastating extreme weather events. In 2011, major flooding had not affected the region since 1974, and flooding of this nature was considered a ‘once in a 100-year event.’ For current homeowners, it has been just over 11 years.

This short time frame between significant flooding events could:

shift buyer attitudes around housing in low lying areas
see markets with low flood risk attract greater demand over time
result in higher insurance premiums, which may dissuade buyers from areas vulnerable to flooding
elevate repair/renovation costs at a time when the building industry is already experiencing high demand, and labour and material shortages Article extract sourced from CoreLogic – Eliza Owen 3 March 2022

Till the end of February, Brisbane recorded positive house price growth. This is predominantly being fuelled by the lack of properties currently on the market. Listings in Brisbane are more than 20 per cent lower than a year ago and more than 40 per cent from the previous five-year average according to CoreLogic.

If you are looking to buy or sell, our door is always open – You are our focus.

Regards
Amanda
Amanda Butler – Principal
0438 767 439