15 Feb 11 @ 06:49am by Ben Johnson
CLAIMS of a massive drop in property prices in flood-affected areas are unfounded, says Matusik Property Insights director Michael Matusik.
Speaking at a Property Council of Australia Queensland lunch on Friday, Mr Matusik attacked comments made by Queensland University of Technology property economics expert Professor Chris Eves in an article in The Courier Mail on Thursday, where he said house values in flood affected areas have historically been known to drop by up to 35 per cent.
``I don’t know where that figure (35 per cent) is coming from,’’ Mr Matusik said, although he was unsure how property growth would be affected following the recent spate of natural disasters in Queensland.
``For a year or two after the `74 floods, property prices were cut by 10 per cent, so people didn’t sell and the volume of sales dropped.
``When Wivonhoe (Dam) was constructed, fears alleviated and people got on with their lives.
``Brisbane would have flooded again in 1983 if it wasn’t for a half constructed dam, which only escalated people’s perceptions that those flood-affected areas were safe.’‘
Between 1974 and 2010, property prices in the same flood affected areas rose from $28,000 to $800,000, Mr Matusik said.
``I’m not saying that we will repeat that growth, but assuming that sense prevails and we have some resolution about how the flood occurred and how to fix it in the future, I wouldn’t be surprised if things get back to normal relatively quickly.’‘
However, he said the recovery could still take upwards of a year.
``We need to rebuild confidence and earn every sale,’’ Mr Matusik said.
Speaking at a Property Council of Australia Queensland lunch on Friday, Mr Matusik attacked comments made by Queensland University of Technology property economics expert Professor Chris Eves in an article in The Courier Mail on Thursday, where he said house values in flood affected areas have historically been known to drop by up to 35 per cent.
``I don’t know where that figure (35 per cent) is coming from,’’ Mr Matusik said, although he was unsure how property growth would be affected following the recent spate of natural disasters in Queensland.
``For a year or two after the `74 floods, property prices were cut by 10 per cent, so people didn’t sell and the volume of sales dropped.
``When Wivonhoe (Dam) was constructed, fears alleviated and people got on with their lives.
``Brisbane would have flooded again in 1983 if it wasn’t for a half constructed dam, which only escalated people’s perceptions that those flood-affected areas were safe.’‘
Between 1974 and 2010, property prices in the same flood affected areas rose from $28,000 to $800,000, Mr Matusik said.
``I’m not saying that we will repeat that growth, but assuming that sense prevails and we have some resolution about how the flood occurred and how to fix it in the future, I wouldn’t be surprised if things get back to normal relatively quickly.’‘
However, he said the recovery could still take upwards of a year.
``We need to rebuild confidence and earn every sale,’’ Mr Matusik said.
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