Council’s futuristic flood line could cost the city millions in valuations and cause property prices to dip, according to real estate experts.
The new flood plan uses the latest rainfall, climate change considerations and aerial surveys to predict future flood levels, but these ‘predicted’ levels are set to have major impacts on the Logan real estate market.
Michael Wardlaw from House Realty said the new flood map will cost the region a large amount of money in land valuations.
“This is going to impact a lot of people, their families, their properties and their resale value, their insurance and so many other aspects,” he said.
“Depending on the situation and where the property is located on the maps, especially those who are now fully covered by the blue flood zones, they will have to have their land and home re-valued.
“It’s going to cost the state revenue in new land valuations on these properties and individuals will have to get their homes reassessed if they want to sell in the future.”
Real Estate Institute of Queensland’s CEO Antonia Mercorella said sale prices on flood affected properties are likely to dip.
“In most parts of Queensland, local government will produce free flood maps online for historic floods and the probability of future flood risk, which are a useful tool,” she said.
“But it’s not a perfect science and they don’t guarantee that a property won’t flood in the future.
“We’re likely to see a fairly immediate dip in the sale prices for flood-affected properties, but history has shown that we have a resilient market that tends to bounce back.
“It is important to consider that when it comes to flooding, current owners and future buyers need to be aware that if the property is in an area that may be flood impacted in the future, this could have significant impact on the cost of insurance or may even prevent you from being able to secure the appropriate insurance required.
“This can also impact your mortgage borrowing.”
Mr Wardlaw said council was becoming overly cautious.
“Clearly areas that have been affected before should be included in the maps because that’s based on facts,” he said.
“But for families and homes to be impacted based on predicted data or what they think may or may not happen is ridiculous.
“Council have done this to cover their own bums and I just think they are becoming too overly cautious.
“We are getting weather alerts via text now just about every time it rains with predicted severe storms, yet they never eventuate and it’s creating fear for no reason.”
For Logan buyers, Ms Mercorella said it’s a good idea to speak to your solicitor before purchasing a property with a flood risk.
“Every flood event is different, and we would caution buyers about relying on this information alone, particularly if you’re buying in an area that’s prone to flooding,” she said.
“We would strongly recommend that they speak to their solicitor about the sorts of searches and due diligence to carry out before purchasing a property.”
Logan City Council urges all residents, landlords and business owners to use the online Logan PD Hub (loganhub.com.au/dashboard) to be more aware of their property’s potential risk of flooding.
