Opinion versus reality: Flood-affected property values in Rockhampton, Australia

The 2011 Rockhampton floods are taken as a case study to examine resident opinions compared to market realities of the impact of flooding on property values. A mail survey of flood-affected properties returned a sample of 111 respondents? views on various aspects of the flood experience and impact. It was found that over 50% of respondents believed the flood event had a negative impact on property values of whom the majority believed the impact was a large decrease in values. Survey results were compared to the actual performance of the market which failed to show any defensible impact attributable to the flood event. The literature reveals equivocal findings impacted by various factors. In the subject case it appears that the level and type of media coverage may have been responsible for the creation of opinions at variance with reality.