Even though experts warn that extreme weather could cost Australia’s property market hundreds of billions of dollars by 2050, homes in high-risk climate areas are still increasing in price.
A recent analysis by real estate firm Ray White shows that many suburbs flagged as “high-risk” for flooding, bushfires, storms, and coastal impacts have seen property prices grow over the past year. More than half of these areas recorded an average increase of 5.8%. Prices ranged from luxury homes over $2 million to some properties under $100,000.
Lifestyle choices, rather than climate concerns, appear to be driving buyers’ decisions. But experts warn this could change. Nerida Conisbee, chief economist at Ray White, said more frequent extreme weather, stricter building rules, and tighter lending could put downward pressure on prices in vulnerable areas.
REA Group chief economist Eleanor Creagh noted that rising sea levels and severe weather are already affecting property values in some parts of the country.
Meanwhile, property strategist Cecille Weldon predicts a “renovation revolution,” with homeowners focusing on comfort and resilience. Features like ceiling insulation and external shading could become more popular as people prepare for hotter summers, storms, and other climate impacts.
While prices are still climbing, the message from experts is clear: climate risk could play a bigger role in the housing market sooner than many think.
Source:
Mackenzie Scott. 2025. “Property Prices Defy Climate Risk Warnings in New Data.” The Australian. Accessed September 2025.
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