Sydney’s coastal homeowners face their property values being reduced, as the future risk of increasingly extreme weather events grows, a climate risk consultant says.
Dr Karl Mallon, director of science and systems for Sydney-based consultants Climate Risk told The Sydney Morning Herald that there are “potentially millions and millions of dollars of revaluation that has to happen in the property sector and it’s not going to be pretty”.
“We could end up with suburbs where there is a wholesale collapse in value,” he said, highlighting “erosion, actions of the sea, landslip and ground contraction,” as some of the main impacts which are still largely uninsurable.
Dr Mallon said that many Australians do not realise that a change in a property’s value does not occur when an extreme weather event takes place, but “when the market realises the event will occur and revalues the house…it’s the homeowner which is the sitting duck in all this.”
He pointed to a “disconnect,” between banks, government planning and the insurance industry, which is leaving Australian homeowners vulnerable to “climate change foreclosure”.
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