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The way I see it is that there are a lot of people whos houses are now damaged, so they need somewhere to live, also the people buying houses are going to either buy houses in flood areas cheap, or there will be more competition for the houses in non flood areas (well thats what I am hoping)...

On another note, I will be selling my brisbane house soon, and luckily it is above the 100yr flood marks, so maybe this will increase its value ? Ben