Study: Climate change could slash $571b from property values

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.

Key points:

  • 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.

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