As the world takes heed of the impact of global warming, a recent parliamentary report raised the prospect of bans on certain coastal developments exposed to the dangers of rising sea levels. Some coastal properties in Australia have already experienced corrosion due to advancing sea levels.
Therefore, the implications of global warming for coastal real estate could be significant especially for properties which are less than 5 metres above sea level and are within close proximity to the water. These properties may be subjected to much higher and expensive insurance premiums, insurers imposing risk mitigation and remedial work on owners or face the prospect of self-insurance.
Future new development in areas which are exposed to the risk of rising sea levels may be subject to very strict planning and development guidelines to obtain approval. This increase in restrictions may augur well for the value of existing homes due to an increasing shortage of supply. On the other hand, potential buyers looking for a sea change may actually opt for a tree change instead.
As sea change and coastal real estate become more scarce in Australia, its alternative tree change real estate which is currently in abundance due to Australia’s vast rural and regional landscape may offer just the lifestyle that is seen to be the less glamorous option, at least for now.