Source: Radio NZ news article (dated Jan. 5th, 2021) – A valuation company said that coastal properties remain popular as buyers fail to heed dire forecasts about the effects of future climate change.
A report released in December by Deep South National Science has predicted that New Zealand’s sea level will rise by at least 10 centimeters in the next 20 years, increasing the frequency and severity of coastal flooding. That could lead to 10,000 homes becoming uninsurable within the next 30 years.
However, Quotable Value General Manager David Nagel said that future sea levels were not scaring away buyers, with coastal properties remaining among the ‘hottest of hot commodities’. Nagel said insurance companies have warned that coastal properties may become uninsurable the more climate change occurred. He said that the difficulty became not just the risk of damage or loss of property, but without insurance it was unlikely a mainstream bank would lend funds to purchase coastal properties, causing ‘havoc’ on the property market. Mr Nagel is not the only one concerned by the future threat of rising sea-level. More than 20 QV property consultants and valuers surveyed nationwide with nearly all of them naming coastal areas in their region as the places most likely to go up in value this year.
In the Coromandel, QV property consultant Jarrod Hedly said the threat of sea-level rise had not dampened demand for coastal property. “Residential house values have continued to grow very strongly over the last six months – particularly on the eastern side of the Coromandel. While most growth at the lower end of the market in coastal areas, there remains strong demand for higher value beach-front property.”
David Nagel advises buyers to seek professional advice before buying coastal properties. “Just make sure that people are going into these property transactions with their eyes open, and that they’re doing all their due diligence an they are assessing the risks prior to signing on the dotted line”. “What you should be doing is visit your local council, get as much information as you can .. make an informed decision when buying real estate”.
Allow Geohazard Assessment Services to assist you in making that informed decision when thinking about purchasing a coastal property.