PHOTO: Australia’s central bank has warned that climate change poses a real risk to house prices.
- RBA finds 3.5 per cent of homes already ‘high risk’.
- This doesn’t include all of the homes that haven’t yet had their values affected.
- As many as 254 suburbs can be defined as climate sensitive by 2050.
Homes in coastal and agricultural regions could see a “material decline” in values due to climate change, Australia’s central bank has warned.
The Reserve Bank of Australia (RBA) on Thursday said insurers will start to back away from risky assets which will have a knock on effect on house prices in those areas.
That’s largely due to the potential for a small share of houses in extreme weather regions to experience sharp price falls, triggering cascading credit losses for banks.
While the RBA said the overall losses are “likely manageable” for lenders, specific Australian regions will face material declines in prices.
Some 3.5 per cent of dwellings across Australia are already considered at “high risk” from climate change, RBA economists Kellie Bellrose, Michelle Royters and David Norman said.
However, the key issue is property prices not yet reflecting future climate risk, the researchers added.
READ MORE VIA YAHOO
- Abandoned land for sale
- 2021 REINZ Awards for Excellence
- The least affordable city in New Zealand
- Why we won’t continue to see the mother of all NZ property booms | Lucia Xiao
- When will the housing BOOM stop?: NZ homes increase by 25.5% | REINZ REPORT
- LOCKDOWN TAKES RE/MAX NEW ZEALAND AWARDS VIRTUAL
- Culture breeds success despite lockdown
- Get it New Zealand? Moscow real estate demand falls 31% after mortgage rate increase
- How Tenisha Williams went from teen mom to owning a $200 million real estate agency | WATCH
- Timaru flat the scene of an absolute tragedy | WATCH