The flood damage will surely have a massive economic impact on property owners but this is likely to be short-lived according to Residex.
John Edwards, founder and CEO of Residex said that the rebuilding process will result in a stable and even stronger property market.
“We do not believe the floods will have more than a transitory impact, and non-affected flood areas will see growth that may not have occurred had the floods not eventuated,” said Edwards.
“After flooding occurs, very few of the properties unfit for use will be sold or even placed on the market for sale. Those covered by insurance can be repaired, and even those not insured will generally stay off the market because owners, more often than not, increase borrowings to make their homes livable once again. After repairs are made and the clean-up is done, these damaged properties usually have better presentation and are in a better condition than they were before the flood, therefore property values in these areas should remain stable if not increase.”
