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A new property risk portal is enabling Australian property purchasers to better brace for changing climate conditions.
With climate-related impacts having a growing effect on residential property values and insurance costs, the new portal aims to provide home owners and buyers alike with the ability to assess the viability of a home into the future.
The new portal, from Climate Valuation, is “the type of due diligence we expect homeowners, lenders and possibly even regulators will consider a norm in the coming years”, according to chief executive Dr Karl Mallon.
It comes as the number of properties at moderate or high risk of impact from climate change is expected to increase to one in eight Aussie homes by 2030.
At present, nearly half a million properties are already being classed as high risk.
By 2050, it’s expected that 2.6 million residences will fit into the moderate or high-risk categories.
By 2100, some coastal areas may see complete loss of value due to rising sea levels and storm surge, while one in three Australian homes are set to be classed as moderate or high risk under the current emissions trajectory.
Dr Mallon said potential buyers are now needing to look “beyond the immediate concerns of inflation and rising interest rates”.
He believes people must “consider the availability and cost of insurance and the possible effect of climate hazards on market value by the end of their mortgage term”.
After all, “these factors will affect the future saleability and appeal of a home”.
The new portal, which can be tailored and individualised to a specific property, provides open access to insights on the maximum value of risk and the cost of potential damages for every suburb in Australia and identifies areas where people should be particularly careful.
Historically, this data has been used by companies and banks, but the new portal aims to make this information available to “everyday home buyers at an affordable price”.
According to Climate Valuation, comprehensive, asset-specific insights can be obtained by purchasing a separate report.
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