Climate change puts Sydney homeowners at risk
Sydney homeowners could see their property values hit by climate change, a consultant has claimed.
According to the Sydney Morning Herald, Climate Risk director of science and systems Dr Karl Mallon has warned that coastal home owners in Sydney could see insurers reduce their property values as climate change puts their homes at risk.
“You can build a house which is insurable tomorrow, but is wholly unsuitable 30 years down the track,” Mallon said.
Mallon told the Sydney Morning Herald that Australian homeowners were vulnerable to “climate change foreclosure”.
“There are potentially millions and millions of dollars of revaluation that has to happen in the property sector, and it’s not going to be pretty. We could end up with suburbs where there is a wholesale collapse in value,” he told the SMH.
Mallon said there was a “disconnect” between banks, insurers and government planning.
“It’s the banks who probably need to lead the charge to sit down with insurers and planners and say, ‘Will you start providing insurance on this?.”