Recent torrential rains causing flooding across south-east Queensland are unlikely to derail Brisbane’s thriving property market, according to experts. Despite some homes in flood-prone areas being inundated for the second time in 11 years, strong interstate and international demand continues to support property values.
Looking back at the 2011 floods, data shows that while some suburbs experienced short-term price drops, the market rebounded strongly over the following decade. For example:
- Graceville and St Lucia saw median house prices fall by 1.5% and 3.7% to $650,000 and $780,000, respectively, in the year after the floods. By December 2021, prices had climbed dramatically—107.7% in Graceville and 101.3% in St Lucia—reaching $1.35 million and $1.57 million.
- West End, another hard-hit suburb, recorded a 7.5% rise to $747,000 just one year after the floods, far surpassing Brisbane’s overall annual growth of 0.8% at the time. By 2021, median prices in West End had surged 87.4% to $1.4 million.
Dr Nicola Powell, Domain’s head of research and economics, notes that while property values in affected areas may experience short-term fluctuations, Brisbane’s market remains resilient long-term. “Floods may impact some sales temporarily, particularly for affected homeowners, but the intrinsic value of the land ensures recovery,” she said.
Dr Diaswati Mardiasmo, PRD’s chief economist, echoed this sentiment, pointing out that even the most flood-affected suburbs historically recover quickly. With strong price growth since COVID-19 and the upcoming 2032 Brisbane Olympics, the city’s property market is well-positioned to continue its upward trajectory.
In short, while flooding may temporarily disrupt sales or confidence, Brisbane’s booming property market and high land values suggest that long-term growth remains largely unaffected.