It’s already been over two weeks since we all turned on the TV to witness the almost unbelievable scenes of fellow Queenslanders being swept from their homes by what was described by many as an “inland tsunami”. Given everything that has transpired since that day – it does seem like an incredibly long couple of weeks… The TV viewing was addictive and none of us could quite believe what we were seeing! Familiar landmarks and suburbs completely submerged!
Whilst we all feel compassion for those that were directly affected, many of us are already looking toward the future and considering how the recent floods will directly affect our own lives. There is much talk in the media and the political arena about the cost to rebuild, insurance implications, lost productivity, cost of fresh produce, etc, etc.
Rebekah Gould of Smartline Mortgage Providers has provided me with the Propell National Valuers short report containing their perspective on many of the issues that will affect the Queensland property market in particular and the local economy generally.
In summary they predict:
- Fresh produce is likely to rise considerably in cost for the next year.
- An increase in tradesman’s rates and material costs as demand spikes.
- Rents to increase by 10% in suburbs near flood affected areas.
- Employees may be forced to find work elsewhere due to permanent or temporary business closures.
- Businesses providing goods and services critical to the rebuilding effort will be the real winners.
- Market values in flood affected areas will reduce in the short term.
- Past experience however, tells us that property values tend to recover within 6-12 months.
- Lenders may review their loan-to-value ratios for properties in flood plains.
I have attached a copy of the full report if you wish to read further. Fore-warned is fore-armed as they say!