Flood-prone Brisbane suburbs enjoy sharp price growth
House prices in flood-prone suburbs of Brisbane have outperformed the rest of the city.
About 95% of the 20 suburbs affected in the 2011 floods have recorded price growth exceeding the city’s 26.7% five-year price benchmark, according to real estate risk rating assessor RiskWise Property Research.
Fig Tree Pocket enjoyed the biggest increase, of 52.7%.
RiskWise CEO Doron Peleg says buyers see the 2011 floods as a one-in-50-year risk worth taking in return for owning a riverfront property.
“After the 2011 floods the perception among property buyers was these areas would be looked at negatively and prices would fall, or at least deliver very poor capital growth.
“But our research has shown the reality is completely different and the demand for them has eclipsed the negative perception.
“This is because these high-flood areas are truly well located on the river, which is in high demand.”
Mr Peleg advises buyers to undertake due diligence, including securing insurance.
“While [insurers] have revised their product offerings and premiums, which no doubt will be quite high, it is still possible to get insurance,” he said.