Australian Property News

Nature’s fury slows market recovery

Posted on Wednesday, January 30 2013 at 3:33 PM

Property markets along Australia’s east coast and in Tasmania will face another setback to their recoveries following recent extreme weather and bushfires.

John Lindeman, director of Property Power Partners, believes those markets still recovering from severe weather will slow in the wake of recent events.

“In the case of Brisbane, it’ll probably delay the growth that was going to occur,” he says

However Lindeman believes the impacts will vary depending on the severity of the damage and the region affected.

“I don’t think it’s going to effect the market in places that are more used to flooding like Rockhampton, but in places like Bundaberg where it’s so severe, it’s going to take a couple of years to bounce back there.”

He also suspects the effect of bushfires on property markets will be immediate in Tasmania.

“The fires were in areas where it’s mainly holiday homes… but it will definitely slow the market down for some time,” he says.

The finance industry is looking at ways to help those affected, according to Loan Market spokesman Paul Smith.

Smith says fast-tracked claims, changes to loan repayments and the waiving of certain charges are on offer.

“Losing your house to a natural disaster such as this is a devastating event but it’s encouraging to see lenders and banks respond so quickly to offer assistance.”

The Real Estate Institute of Queensland (REIQ) says its currently assessing the impact of the floods and will comment on any potential consequences for the state’s property market later this week.