Brisbane property prices in high-value suburbs affected by the 2011 floods have rebounded more quickly than expected.
It’s good news for owners, but Brisbane property experts say investors still need to be cautious buying into the flood-affected suburbs.
Speaking on ABC 612 in Brisbane, QUT property economics professor Chris Eves said it was important to look at the different segments of the Brisbane property market when considering the flood aftermath.
“There is a disconnect between the higher-value areas and houses in the lower-value suburbs of greater Brisbane and that is where we’re seeing significant difference,” Prof Eves said.
He said median house prices fell about $70,000 in the four months after the flooding in high- and low-value suburbs.
But Prof Evans said $70,000 in the high-value areas of the Brisbane property market was significantly less of a percentage than in the low-value ones, where owners had seen the median price drop from about $420,000 to $340,000 in the four months after the floods.
“But where it was interesting and totally different to other flood studies I’ve been involved in – in Sydney, the UK and Europe – is that the high-value markets actually recovered very quickly,” Prof Evans said.
“Normally, in previous natural disasters you find that those markets take around four years to get back to where they were before the disaster.
“But in the case of Brisbane we’re looking with these high-value suburbs coming back very quickly.”
The strong recovery in Brisbane property was put down to the value people put on being close to key amenities – including the river, transport and proximity to the CBD – and their social networks.
“They tend to weigh that up against the impact of a flood and the likelihood of a flood,” he said.
“If you look at the time difference between the ’74 flood and the 2011 flood, most of those people, even if the water was up to the roofline, in those high-value suburbs because they had access to funds to do remedial work very quickly, they were only actually out of their houses for a short period of time.”
Even so, the floods have created insurance and related issues for investors considering buying into the Brisbane property market. As an active participant in the Brisbane investment property market, Portfolio is focused on the critical research to find clients the best investment options.
To find out more about how Portfolio Management Services can help you achieve your property investment goals in the Brisbane market, call today on (03) 9621 1044.