A report from the Australian Property Institute (API) found almost 75 per cent of prospective Brisbane homebuyers are not interested in homes which were hit by flooding last year.
It also suggested homes flooded last January could have their values slashed by more than 20 per cent, reports the Courier-Mail.
Many of the homes put on the market were owned by investors who decided the cost and effort of repair was not economical, while many of those who stayed to repair their houses were people who lived in the property themselves.
API spokesman Gavin Hulcombe said insurance would be a crucial factor in the recovery of the area's residential market.
"One of the issues going forward will be availability and the cost of insurance to those properties,'' he explained, adding that if this became prohibitive investment would drop.
Brisbane City Council has made an effort to deal with some of the flooding damage in the last year, clearing up 403 of the 406 parks affected by flooding and restoring transport infrastructure.
Posted by Steve Douglas
