Rising Sea Levels and costal property values

[hwd007]

Rising Sea Levels and the effect on costal property values.

This may be a bit of a "red herring" at this stage, but I'm wondering what potential financial implications could be in store for the future of low lying costal property, given issues surrounding global climate change and rising sea levels. I mean if we project say 30 years into the future.

I know it's very premature to be discussing this type of thing, but one day if sea levels do in fact rise, there could perhaps be implications for projected longer term low lying costal property values, insurance and operational costs etc...

Also the possibility of a market panic if it became obvious that costal property was posing a longer term insurance risk to insurers who started raising premiums which then created a flow on ripple effect throughout the coastal property market.

We probably won't see a difference in our life times, but the future generations may at some point be impacted by this type of phenomena.

 

[Ausprop]

interesting thought. sea change is primarily driven by the boomers who will be mostly departed by then, so maybe they wont care. given the huge problems this will cause to every facet of our lives if it eventuates (the rising sea levels that is!), then I expect the consequences to be a lot more far reaching than just a handful of properties at the extremities losing their value.

 

[kaf]

I guess this should already be an issue in the south east of the US. Would be interesting to see what the previous hurricane seasons have done to Florida property prices for example...

kaf

 

[hwd007]

Interesting article

Brits beware getting burnt in Florida

http://observer.guardian.co.uk/cash/story/0,,2030972,00.html

"Hurricane Katrina is driving real-estate prices both up and down, depending on where you are along the Gulf Coast."

http://www.realestatejournal.com/buysell/regionalnews/20050922-fletcher.html

 

[the.j]

I just bought a place in Rockingham, 1km back from the beach - I am hoping that the ocean does rise so that I do get ocean views and some interesting dive sites !

 

[geoffw]

For those who are feeling happy (or at least complacent) about their "away from the coast" places.

Some reports are saying that, even though places inland are not going to suffer from higher sea levels, they are much more likely to suffer from other effects of Global Warming- like more bushfires- perhaps fuelled by higher fuel levels- in turn caused by higher CO2. So maybe my "Bush change" town block is at risk.

 

[landlubber]

One for the lawyers...

Does anybody know what happens legally .. if you have freehold title to waterfront property and the sea level rises (...with global warming or whatever) over that land. Do you still keep the title ?? ... and hence can possibly turn it into "marina berths"?

LL

 

[sailor]

Does anybody know what happens legally .. if you have freehold title to waterfront property and the sea level rises (...with global warming or whatever) over that land. Do you still keep the title ?? ... and hence can possibly turn it into "marina berths"?

LL

10/10 for thinking outside the square. However, anything below high tide mark belongs to the govt.

 

[Sunfish]

Does anybody know what happens legally .. if you have freehold title to waterfront property and the sea level rises (...with global warming or whatever) over that land. Do you still keep the title ?? ... and hence can possibly turn it into "marina berths"?

LL

As sailor says, "10 points for thinking outside the square" but anyone who thinks there could be a winner from coastal inundation, simply isn't thinking.

The good news is "(Man made) global warming (coastal inundation) is a hoax." And this is not just my humble opinion. Blame it on the sun spots. (not the ones on my arms. LOL)

 

[twobobsworth]

Lets also not forget that any "claimed" rise in sea level has to happen everywhere. Not just in the once place.

 

[topcropper]

The good news is "(Man made) global warming (coastal inundation) is a hoax." And this is not just my humble opinion. Blame it on the sun spots. (not the ones on my arms. LOL)

Your opinion May be correct. But if the world is warming up, then the outcome is the same, so what does it matter if it's man made or natural. Just my observations make me think things are getting warmer anyway.

See ya's.

 

[landlubber]

Maybe we should form a company with expertise in building sea walls.


LL

 

[the.j]

From the ABC Perth Radio article
"What would Mandurah look like if the sea level rose one metre?"

http://www.abc.net.au/perth/stories/s1729593.htm

 

[NedKelly]

People have short memories. In February 1974 Cyclone Wanda hit Brisbane & the Gold Coast. The Brisbane River and the whole area flooded. This was still not as bad as the flood of 1893. At that time hardly anyone lived on the Gold Coast but there was extensive flooding. I was talking to an old local guy in Coomera about housing development, he said " You see that development across the water, in 1974 it was under 15 feet of water. The developers have just built a subdivision and done nothing about increasing the height of the river bank. One day it will be under water again". A friend of mine lived in Bundall in 1974. He escaped the floods by climbing onto the roof of his house.

In 1974 there were 70,000 people living in Gold Coast City, now it's more like 450,000 and the number of houses in low lying areas has increased massively, especially along the waterways of the Coomera & Nerang rivers.

It's a disaster waiting to happen.

 

[rich ando]

I think we are seeing a number of trends..
1) A continued shift to "see change" coastal property with many developments now occurring in traditionally vulnerable (flood prone eg Northern NSW & Gold Coast) areas.
2) A slowly rising sea level
3) Increasingly unpredictable and violent weather.
4) More coastal areas becoming susceptable to erosion (eg Belongil at Byron).

I guess at some stage we will see all these factors combine in a certain area with disasterous results. This will pricipitate a period of panic when sea side property will be on the nose and result in a more cautionary approach to investing by the sea. Insuring and financing those properties will become more difficult or expensive.

However, there is a charm about living by the sea that will never disappear and for those that buy these properties for lifestyle, not investment, the demand will remain.

My two pennies!!

 

[AnneDe]

If buying near water, either river, creek or coastal etc. doing a local council flood search should be part of the DD process.

In QLD (and I'm sure this would be available in other states), local councils have flood maps available. For preferred purchase areas one could also do a 'Google' flood search and maybe find this information on the web.

I was in my teens during the 1974 floods and remember areas of Brisbane which are now considered as 'upmarket' real estate, going under metres of brown muddy water.

Came across this ABC news on-line article:

"Scientists at the Australian National University (ANU) are developing a digital model of Australia's coast to work out which areas will be submerged by climate change". (for full story see link)

http://www.abc.net.au/news/newsitems/200704/s1893553.htm

This model being developed could become an important tool for future real estate purchases, property/land valuation, insurance purposes etc.

IMHO I think it is not a question any more about global warming contributing to sea levels rising, but by HOW MUCH will they rise and WHEN?

Cheers,
AnneDe