Copyright internewscast
The lure of cheaper homes Amid a national housing crisis, McKenzie warned that there is no silver lining to climate change pushing house prices down. “We’ve been asked a lot that, if these houses are worthless, isn’t that a good thing?” she said. Former prime minister Scott Morrison inspects a flood-damaged property in Sydney’s McGraths Hill in 2022, where property values have since dropped by nearly 9 per cent. Source: AAP / Dean Lewins “In some of these regions where we’ve identified the flood risk being really high, they’ve been inundated multiple times within a five-year period,” she said. “If you’re in a flood risk zone, you find it’s harder to insure your house, or you can’t insure your house. And so when a catastrophic flood comes, you have far less resilience to that flood event. You potentially can’t rebuild your property.” Many of the regions are already lower socioeconomic zones, and McKenzie said people should not be lured by the promise of cheaper homes. Richer areas not immune Homes at the waterfront suburb of Mermaid Beach, once one of the most expensive places to buy on the Gold Coast, are valued 7.8 per cent lower due to flood risk. This was despite only 16 per cent of properties being located in the flood zone. However, events such as ex-Tropical Cyclone Alfred, which hit the Gold Coast between February and March this year, contributed to the changing perception of Mermaid Beach. A damaged Putt Putt golf course at Mermaid Beach following ex-Tropical Cyclone Alfred in early 2025. Source: AAP / Dave Hunt However, the report did find the drop in value was smaller in some of the more prestigious areas. Noosaville and Noosa Heads were two places where coastal vistas and an enviable beach lifestyle outweighed the risk of flooding. McKenzie said this is likely because “people don’t fully appreciate the risks yet”. Who should pay the penalty? Climate Council CEO Amanda McKenzie said this report showed “the material cost that people are wearing right now.” McKenzie called for changes to planning laws to stop future builds in flood prone areas. McKenzie urged people considering buying in a flood zone to consider the future risks. “This isn’t about a moral argument for a better future. I think it’s important to communicate to the public and to politicians that this is an economic, material cost being experienced today.”
