Fire Not a Deterrent for Some Home Buyers
Trends suggest that bushfire ravaged or bushfire prone areas remain quite attractive to home buyers. Of course, some buyers are deterred by the knowledge that a bushfire has ripped through or threatened an area, but data from the Australian Property Monitors reveals that many buyers are willing to take the risk and obtain a home loan that affords them a property in such a location.
Whether there is a link between property price movements and the bushfire threat that many country towns face is inconclusive.
In the Blue Mountains area of New South Wales, fire is a very real and concerning threat. In 2006, the towns of Hazelbrook and Woodford were seriously threatened by fire. In the following year, a decrease of 9.5 % was observed in the median house price of houses in Woodford, however an increase of 3 % was observed in the median house price of Hazelbrook.
Similarly, in Faulconbridge – a town that had also been under threat – prices dropped by 3 % in the following year only to increase by 6 % 12 months later.