Despite the increasing frequency of tropical cyclones and severe storms, demand for coastal properties remains strong. While natural disasters can cause short-term price dips, long-term trends show significant capital growth.
Data from Cotality (formerly known as CoreLogic) reveals that high-risk coastal areas have seen values rebound by as much as 500% over the past three decades. Even regions frequently impacted by cyclones—such as Hervey Bay and Bundaberg—have doubled in value in just the past 10 years.
On the Gold Coast, Sunshine Coast, and Richmond Tweed, house prices in every suburb have more than doubled over the past decade, with some increasing by up to 535% since 1995.
Tim Lawless, Cotality’s research director, notes:
“Australians seem willing to look past the potential hazard risk from weather-related events… Maybe the only thing that could interrupt that love affair with coastal markets would be if we see insurance becoming either unavailable or too expensive.”
Meanwhile, coastal suburbs affected by high interest rates and tax policies—such as those on the Mornington Peninsula, Geelong, and NSW Central Coast—may present opportunities for buyers looking to enter the market before a potential rebound.
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