In an unfortunate reality, the Queensland property market will now add insult to tragedy in many of Brisbane’s most affluent suburbs as approximately 26,000 homes require much more than a helping hand.
Once rebuilding efforts are complete, it is the memory of such devastation that will remain to haunt the market and their respective property values. Just to name a few wounded Brisbane suburbs, look to the devastation across New Farm, West End, St Lucia, Indooroopilly and Graceville as these areas are some of the most severely damaged by recent floodwaters.
The principal of Century 21 franchise in West End, Gerard Baden, understands the scope of financial imbalance that this tragedy will have on an area, such as his, which is bounded by rivers on three sides.
“I think we are going to find that the big pricing adjustments will be in the higher cost areas along the waterfront,” he says.
Speculation has been made, saying that the now volatile Brisbane real estate market will expect to see properties in low lying yet higher priced suburbs face a decrease of between 15 to 30 percent in value.
As the recent tide begins to drain and the Wivenhoe dam is expected to stabilise at full capacity later in the week, we hope to determine the price of the bricks and water left behind. We will see mixed emotions over the next month by residents who are beginning to assess the damage that this natural disaster has incurred.
Mr Baden believes that the previous pool of buyers and those wishing to sell will experience a dramatic shift in the market.
“This will see the introduction of a two-speed market comprising of those properties affected by water and those that aren’t. What the neighbours house sold for last month will no longer be relevant,” he says.
Brisbane real estate sales will experience a newfound attention to locating floodplains, as people have been made more aware of the risks involved when living on the river’s edge.