How will House prices change in Brisbane after the 2011 floods ?
More than one person has made a comment on this, and it could be an interesting topic.
Is there a way that may give is in idea ?
What happened to Brisbane property prices after the 1974 Brisbane Flood ?
From a document showing Real annual median house price indices ?? capital cities 1970-2003, the following changes to the Brisbane Property Price Index is available:
At first glance does this appear to show a reduction in property following the flood ? Yes.
Does this show a reduction in property because of the flood ?
Let’s compare to the same property value indexes for the other Capital Cities.
|Year||Brisbane Index||Change||Syd/Mel Average Index||Change|
Brisbane increased by 3.5%, whilst Sydney and Melbourne decreased by 10.1%, so I would say that the 1974 Brisbane Floods had no real effect on Brisbane property prices.
I therefore doubt they will have any real impact on Brisbane property prices after the 2011 Brisbane floods.
However, having said that, I would expect that many people may be preferring to buy a property on the higher land in future, causing an increase in prices for properties in areas unlikely to be affected by future floods. But to balance that out, the lower lying areas may not hold their prices too well.
And everything balances out with the median figures.
Overall, during those years 1974 to 1983, the capital cities changed by the following percentages
Brisbane property prices held up better than the other Cities, with the 2nd highest growth of them all.