{"id":2245,"date":"2022-03-31T09:04:44","date_gmt":"2022-03-31T09:04:44","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/25-billion-in-australian-residential-property-exposed-to-high-coastal-risk\/"},"modified":"2022-03-31T09:04:44","modified_gmt":"2022-03-31T09:04:44","slug":"25-billion-in-australian-residential-property-exposed-to-high-coastal-risk","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/25-billion-in-australian-residential-property-exposed-to-high-coastal-risk\/","title":{"rendered":"$25 billion in Australian residential property exposed to high coastal risk"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div id=\"toc_container\" class=\"no_bullets\">\n<p class=\"toc_title\">Please use the menu below to navigate to any article section:<\/p>\n<\/div>\n<p><strong>Increasing storm surges and coastal erosion has the potential to impact $25 billion worth of Australian residential coastal property.<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-162890 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/coast-300x200.jpg\" alt=\"Coast\" width=\"300\" height=\"200\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/coast-300x200.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/coast.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>The risk score methodology used by Corelogic evaluates combined coastal risks based on compounding storm surge (rapid erosion) and change in coastline (slow erosion), with the latter also implicitly considering ongoing rising sea level trends.<\/p>\n<p>It draws on three decades of shoreline movements and advanced location analytics, to calculate and assign a coastal risk rating for 98% of Australian residential property.<\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab03-1.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162888 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab03-1.jpg\" alt=\"Tab03\" width=\"1087\" height=\"515\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab03-1.jpg 1087w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab03-1-300x142.jpg 300w\" sizes=\"auto, (max-width: 1087px) 100vw, 1087px\"\/><\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-162892 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/floods-1-300x200.jpg\" alt=\"Floods\" width=\"300\" height=\"200\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/floods-1-300x200.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/floods-1.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>Dr. Pierre Wiart, CoreLogic\u2019s Head of Consulting and Risk Management said the damage caused by recent weather events in southeast Queensland and NSW was a tragic but timely reminder of the untold devastation extreme weather events could have on Australian people and property.<\/p>\n<p>Dr. Wiart said the Coastal Risk Score would inform homeowners, future buyers, and financial services sectors such as insurers and lenders, of potential future climate-related coastal risks.<\/p>\n<blockquote>\n<p><em>\u201cIn the next three decades, coastal risk will crystallise, with the tangible effects of climate change already being felt in most parts of Australia,\u201d Dr. Wiart said.<\/em><\/p>\n<p><em>\u201cThis is leading to direct physical and financial consequences.<\/em><\/p>\n<p><em>Coastal risk has far-reaching implications for the country\u2019s property market and its supporting financial sector, including property valuations, home loan viability, and insurance premiums.\u201d<\/em><\/p>\n<\/blockquote>\n<p>The United Nations Intergovernmental Panel on Climate Change (IPCC) report, published in August 2021, called out Australia\u2019s rising sea levels, which are increasing at a rate higher than the global average.<\/p>\n<p>Dr. Wiart said the impact of climate change on Australia\u2019s coastal erosion and rising sea levels was alarming and required urgent attention.<\/p>\n<blockquote>\n<p><em>\u201cUnderstanding the coastal risk associated with those properties is important to every owner, potential buyer, and ultimately our property and financial sectors that are supporting the expansion of new coastal properties in number and in value,\u201d he said.<\/em><\/p>\n<p><em>\u201cConsequently, credit risk and long-term loans are directly impacted by these natural trends.<\/em><\/p>\n<p><em>Equally, for any financial institution, it is important to evaluate the potential downturn in property values or the concentration of a portfolio at risk.<\/em><\/p>\n<p><em>\u201cIncreasing coastal risk is also adding pressure on insurance.<\/em><\/p>\n<p><em>Property owners face ballooning insurance premiums and restricted insurance coverage, together with diminishing their insurance affordability and protection of their significant assets,\u201d said Dr. Wiart.<\/em><\/p>\n<\/blockquote>\n<h2><span id=\"coastal-risk-score-explained\">Coastal Risk Score Explained<\/span><\/h2>\n<p>CoreLogic\u2019s proprietary Coastal Risk Score places properties into one of five defined categories, from No Risk, Low Risk, Medium Risk, High Risk through to Very High Risk.<\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab06.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162886 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab06.jpg\" alt=\"Tab06\" width=\"1087\" height=\"549\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab06.jpg 1087w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab06-300x152.jpg 300w\" sizes=\"auto, (max-width: 1087px) 100vw, 1087px\"\/><\/a><\/p>\n<p>Dwellings categorised as \u2018Very High\u2019 risk may be impacted by coastal retreat within the next 30 years, and may also be at very high risk of significant storm surge impact.<\/p>\n<p>More than 900,000 dwellings are identified as falling into one of the four \u2018at risk\u2019 categories, with 12,694 houses and 9,441 units categorised as being at High or Very High risk of coastal exposure.<\/p>\n<p>The residential value of these properties is $5.3 billion and $19.6 billion respectively.<\/p>\n<h2><span id=\"number-of-dwellings-at-risk-and-equivalent-value-at-risk-var\">Number of dwellings at risk and equivalent Value at Risk (VaR)<\/span><\/h2>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab01-1.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162880 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab01-1.jpg\" alt=\"Tab01\" width=\"1117\" height=\"386\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab01-1.jpg 1117w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab01-1-300x104.jpg 300w\" sizes=\"auto, (max-width: 1117px) 100vw, 1117px\"\/><\/a><\/p>\n<h2><span id=\"australian-suburbs-most-at-risk\">Australian suburbs most at risk<\/span><\/h2>\n<p>CoreLogic\u2019s analysis shows Queensland has the highest concentration of properties at \u2018Very High\u2019 risk for the number of both individual houses and units, owing to the Sunshine and Gold Coast\u2019s densely populated coastlines.<\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab05.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162885 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab05.jpg\" alt=\"Tab05\" width=\"911\" height=\"859\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab05.jpg 911w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab05-300x283.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab05-734x692.jpg 734w\" sizes=\"auto, (max-width: 911px) 100vw, 911px\"\/><\/a><\/p>\n<p>However, New South Wales, Tasmania, and South Australia also have a large number of individual houses classified as being at \u2018Very High\u2019 coastal risk.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-108403 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/04\/melbourne-suburbs-proce-300x199.jpg\" alt=\"Melbourne Suburbs Proce\" width=\"300\" height=\"199\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/04\/melbourne-suburbs-proce-300x199.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/04\/melbourne-suburbs-proce-768x510.jpg 768w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/04\/melbourne-suburbs-proce.jpg 793w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>Of the top 10 suburbs around Australia with the most value at risk, Paradise Point on Queensland\u2019s Gold Coast has the highest volume of detached houses most vulnerable.<\/p>\n<p>As a consequence of their high value, estimated at $1.47 billion within 6.4km<sup>2<\/sup>, no other suburb has such a high concentration of residential wealth subject to high coastal risk.<\/p>\n<p>About 20% of the suburb\u2019s housing stock is at high risk, equivalent to 40% of the suburb\u2019s total residential value.<\/p>\n<p>Cronulla, Manly (Greater Sydney, NSW), and Port Melbourne (VIC) also rank highly due to the high residential apartment value and density of apartment dwellings within close proximity to the coastline.<\/p>\n<p>The common traits of the top 10 suburbs are their close proximity to the coast, low elevation, fastest coastal retreat figures, and high property values.<\/p>\n<h2><span id=\"top-10-suburbs-by-number-of-buildings-exposed-to-corelogics-very-high-and-high-coastal-risk-score-ordered-by-value-at-risk-var\">Top 10 suburbs by number of buildings exposed to CoreLogic\u2019s Very High and High Coastal Risk Score, ordered by Value at Risk (VaR)<\/span><\/h2>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab02-1.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162881 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab02-1.jpg\" alt=\"Tab02\" width=\"1095\" height=\"647\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab02-1.jpg 1095w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab02-1-300x177.jpg 300w\" sizes=\"auto, (max-width: 1095px) 100vw, 1095px\"\/><\/a><\/p>\n<p>While Australia\u2019s property wealth is principally distributed on the eastern and south-eastern seaboard, a significant proportion is located in the country\u2019s premium coastal, river, and harbourfront suburbs.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"alignright size-medium wp-image-116865 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/07\/beachsuburbaerial-300x168.jpg\" alt=\"Beachsuburbaerial\" width=\"300\" height=\"168\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/07\/beachsuburbaerial-300x168.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/07\/beachsuburbaerial-768x431.jpg 768w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/07\/beachsuburbaerial-1024x575.jpg 1024w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2018\/07\/beachsuburbaerial.jpg 1140w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>In the past two years, the trend for coastal living had accelerated, drawing even more people to popular waterfront enclaves resulting in unprecedented increases in housing growth rates.<\/p>\n<p>Spectacular views, lifestyle appeal, and limited supply have long attracted a premium for Australia\u2019s best coastal properties.<\/p>\n<p>In the past two years, however, there has been a broad demographic shift where more Australians are prepared to consider housing options outside of the capital cities.<\/p>\n<p>Working from home has been a catalyst of this trend with more people basing themselves in regional locations during the pandemic.<\/p>\n<p>This shift to working remotely and subsequent increase in demand for regional property has caused the value of coastal properties to accelerate significantly.<\/p>\n<p>Queensland\u2019s Gold Coast and Sunshine Coast benefited enormously from this trend, recording annual median value increases of 33.0% and 34.4% respectively in the 12 months to January 2022.<\/p>\n<h2><span id=\"importance-of-understanding-coastal-risk\">Importance of understanding coastal risk<\/span><\/h2>\n<p>Understanding coastal risk and its potential impact on properties is critical for Australians and the property and financial services industries who support them, Dr. Wiart said, particularly as the expansion of new coastal properties continues.<\/p>\n<p><a href=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab04.jpg\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-162887 img-responsive\" src=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab04-1160x603.jpg\" alt=\"Tab04\" width=\"1160\" height=\"603\" srcset=\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab04-1160x603.jpg 1160w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab04-300x156.jpg 300w, https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/03\/tab04.jpg 1238w\" sizes=\"auto, (max-width: 1160px) 100vw, 1160px\"\/><\/a><\/p>\n<blockquote>\n<p><em>\u201dArmed with this information, businesses can employ a sophisticated approach to quantifying climate change impact, enhancing risk management, and making data-led decisions \u2013 each of which can also benefit their customers,\u201d <\/em>said Dr. Wiart.<\/p>\n<p><em>\u201dWhile this is potentially surprising or even confronting information for homeowners, this important data will allow consumers to make the best property decisions, and help them plan for long-term wealth preservation,\u201d <\/em>Dr. Wiart concluded.<\/p>\n<\/blockquote>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/propertyupdate.com.au\/25-billion-in-australian-residential-property-exposed-to-high-coastal-risk\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Please use the menu below to navigate to any article section: Increasing storm surges and coastal erosion has the potential to impact $25 billion worth of Australian residential coastal property. The risk score methodology used by Corelogic evaluates combined coastal risks based on compounding storm surge (rapid erosion) and change in coastline (slow erosion), [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,39,37,38],"tags":[],"class_list":["post-2245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-homepage-top","category-latest","category-property-investment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>$25 billion in Australian residential property exposed to high coastal risk | Urban Buyer: Buyers Agent &amp; Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Please use the menu below to navigate to any article section: Increasing storm surges and coastal erosion has the potential to impact $25 billion worth of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/royabhishek.in\/urbanbuyer\/25-billion-in-australian-residential-property-exposed-to-high-coastal-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"$25 billion in Australian residential property exposed to high coastal risk\" \/>\n<meta property=\"og:description\" content=\"Please use the menu below to navigate to any article section: Increasing storm surges and coastal erosion has the potential to impact $25 billion worth of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/royabhishek.in\/urbanbuyer\/25-billion-in-australian-residential-property-exposed-to-high-coastal-risk\/\" \/>\n<meta property=\"og:site_name\" content=\"Urban Buyer: Buyers Agent &amp; 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