This article discusses how climate change could slash $571b from property values, study warns.
A Climate Council study warns the value of Australian real estate could plunge over the next decade unless future governments have the political will to deal with climate change.
- The Climate Council estimates Australian real estate will lose $571b, or almost 9%, of its value by 2030
- The losses will be concentrated amongst 5-6% of property owners, with many properties virtually uninsurable
- The report estimates $4 trillion could be wiped off economic growth over the next 80 years if carbon emissions do not fall
The research estimates residential property value losses of $571 billion by 2030 related to increased extreme weather events, inundation of some low-lying coastal properties and higher insurance premiums.
A recent study by the Actuaries Institute — actuaries are the statisticians who calculate risk for insurers — warns that as many as one in 10 properties could become uninsurable by the end of this century due to climate change.