Post-flood opportunities for investors
Investors are likely to be one of the few winners from Queensland's recent flood disaster as demand for flood-proof property pushes up prices and yields, according to Metro Property Development.
Metro Marketing Director Ken Woodley said the floods may have a significant long term affect on the Brisbane rental market and the value of investment properties.
"There will be an immediate short-term scramble for rental properties as those affected look for a place to live while they rebuild," he said. "This will certainly drive demand and rents up."
"The longer term impact is more difficult to foresee but our expectation is that the increased economic activity surrounding the re-building process of public infrastructure in the medium term will sustain the immediate increases in yield and values."
"Re-construction will create jobs, rents will rise and many of those affected may want to move to new flood-proof areas."
Construction of the developer's New York-inspired The Chelsea Bowen Hills project which started prior to Christmas was not affected by the flood disaster with the project still due for completion in mid 2012. None of the company's seven other sites around Brisbane were affected.