Climate change could affect the prices of beachfront properties, according to Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin.
The value of beachfront real estate could be adversely affected over the next decade, unless current and future governments have the political drive to deal with climate change, McKibbin said.
“With rising sea levels and ongoing erosion, the impact of climate change is already having a detrimental effect on property prices in some coastal areas,” McKibbin said.
Some councils already restrict homeowners, preventing them from undertaking any building works, according to McKibbin.
“Purchasers of beachfront properties will be making additional enquiries as part of their investigation regarding the suitability of the property for their needs. For example, they will ask what additional insurance they will need to pay, and whether it will be necessary to build structures to combat erosion,” McKibbin said.
The values of Australian properties could dramatically drop unless urgent steps are taken to address climate change, according to the Climate Council’s Compound Cost report.
“The property market is expected to lose $571bn in value by 2030 due to climate change and extreme weather, and will continue to lose in the coming decades if emissions remain high,” said Dr Karl Mallon, climate risk expert and report author.
Low-lying properties near rivers and coastlines are particularly at risk, according to Mallon.
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