Monday, January 17, 2011

More on the flood and property prices

The SMH had this story:

"House prices in Queensland are likely to sink as the financial effects of state's devastating floods strain household budgets and dent banks’ willingness to lend, a ratings agency has warned. ...

LJ Hooker Indooroopilly principal real estate agent Scott Gemmell said it could be 10 to 15 years before some flooded suburbs regain their popularity.
‘‘In the short period it probably scares me a little; what the flood will do to house prices,’’ he said. ‘‘In some cases, houses will be unsellable."

He said he expected a surge in property for sale listings later this month. Mr Gemmell said his office had been inundated with rental inquiries and had compiled a priority list for those affected. ..."

"... The news is also bad for tenants, with rents expected to soar in line with the surge in demand from displaced residents needing temporary homes. ..."

But, according to another story, landlords will go bankrupt: "Landlords across Queensland are likely to go bankrupt in the next few months, an industry expert has warned."

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