Australia braces for property price plummet in wake of floods

Published 18th Jan 2011

House prices are likely to plummet in flood-hit Queensland communities, and some will be "unsellable" for more than a decade, a real estate agent says.

The news is also bad for tenants, with rents expected to soar in line with the surge in demand from displaced residents needing temporary homes.

The Real Estate Institute of Queensland (REIQ) has reviewed the way the property market behaved after the devastating 1974 floods, and the news for home owners after the latest disaster is not great.

"In 1974, across all of Brisbane there was some downward pressure on house prices," REIQ managing director Dan Molloy said today. "It also coincided with a credit squeeze around that time." But he added: "The market overall ... had some level of recovery within 12 months."

Source: ' TMC '

View All Latest Articles