More buyers fighting for homes across Queensland in the wake of Cyclone Alfred

1 month ago 19

News Corp Australia

First published 12 Mar 2025, 6:00am

A home in Carina with furniture moved outside. With many houses recovering in the wake of Cyclone Alfred, property values in SEQ may stall. Picture: NewsWire/Tertius Pickard

Home values in cyclone-impacted areas across Queensland are likely to take a hit, but an increase in demand for properties in unaffected suburbs could actually drive prices higher.

Ray White data showing price changes in the past three years since the last flood event in February 2022 reveal some negative growth in the 12 months immediately following, but growth above pre-flood levels after that.

Around 30 suburbs recorded drops of more than 5 per cent in their median prices between 2022 and 2023, including Camp Hill, Grange, Holland Park, and The Gap, but those same suburbs experienced growth of between 10 and 17 per cent in the three years to February 2025.

An Oxley house experiencing a flood. Some homes in high-risk areas may continue to see high demand, from those who feel the benefits outweigh the risks. Picture: Steve Pohlner

Ray White chief economist Nerida Conisbee said many high-risk areas continued to command premium prices, despite the threats of flooding or natural disasters.

“Riverside properties, coastal homes, and bush retreats often maintain their appeal due to lifestyle benefits that, for many buyers, outweigh the risks,” Ms Conisbee said.

But she said the market impact of disasters was not uniform across all regions, with Queensland showing more price sensitivity to flood risk, possibly due to repeated major flooding events creating greater risk awareness among buyers.

“As insurance premiums rise in high-risk areas, property markets face new pressures,” she said. “Properties with features that reduce insurance costs may begin commanding premium prices, while properties facing insurance challenges could see values impacted.

“Insurance costs and availability are becoming increasingly important factors in property values, particularly in high-risk areas.”

Ray White Group chief economist, Nerida Conisbee, said repeated flooding events could increase Brisbane buyers’ risk awareness.

Real Estate Buyers Agents Association of Australia (REBAA) president Melinda Jennison said the lack of housing supply, especially across the state’s southeast corner, meant demand could become more concentrated in areas not ravaged by ex Tropical Cyclone Alfred.

“I think that buyers will be more cautious in the immediate future, however I feel that because there’s such a small volume of properties available for sale across Greater Brisbane at the moment, the buyers in the market will become more concentrated on those not impacted,” Ms Jennison said.

“A higher concentration of buyers on a smaller patch [can raise] prices.”

REBAA president Melinda Jennison said areas that avoided the storm’s impact could see concentrated demand.

Ray White Queensland CEO Jason Andrew said auctions may have more competition, with potential buyers having missed a weekend to leave the property hunt.

Ray White Queensland CEO Jason Andrew said the company’s agents were advising vendors not to hold back from selling their properties, despite the recent weather events.

“I think most good agents and their vendors know holding off and waiting will probably just bring with it additional stock or additional competition,” Mr Andrew said.

“Last weekend (when auctions were cancelled) just increases demand … and you have even more diminished supply.”

Investor sentiment could change about homes in some Brisbane areas due to susceptibility to damage and rising insurance premiums. Picture: NewsWire/Tertius Pickard

Ray White Wilston agent Holly Bowden said she received requests to inspect properties as early as Sunday, even as the storm continued to rage on.

Meanwhile Wilston, a suburb significantly impacted by flood conditions, has already seen open homes resume in the wake of the cyclone.

Ray White Wilston agent Holly Bowden said many of her clients’ homes managed to avoid damage from the cyclone, and potential buyers were already interested in inspecting properties that avoided the extreme weather conditions.

“I’ve had requests on Sunday to inspect properties, even though we were right in the midst of a weather event,” she said.

“I think that buyers will have absolute confidence when they’re looking at properties post the weather event as to whether or not the property’s at risk at all. So, for properties that have fared really well, I’ve noticed that we’ve got a lot of confidence with buyers registering for auction.”