Around one in seven homes throughout Victoria face substantial hazards relating to climate and risk exposure, the latest report suggests.
In its latest research prepared in conjunction with Global insurance giant Munich, property information services provider CoreLogic has analysed the climate risk profile of more than 2.5 million properties.
All up it found that 17 percent of properties were at either a high or very high risk of climate hazards.
This equates to a whopping $277 billion worth of estimated property value which is at significant risk of climate related hazards.
According to the report:
- Bushfire hazards are moderate to high risk throughout most of the state. Particularly exposed are suburbs on Melbourne’s north and north-eastern outskirts, from Ballarat to the border of the Lederberg and Wombat State Parks, and the Great Otway National Park.
- Flood risk is significant from Swan Hill to Echuca and Shepparton due to the Murray River, while the flat landscape of Melbourne and its surrounds creates a flood risk from the Yarra, Maribyrnong and Werribee Rivers.
- In many parts of the state, rising sea levels are likely to exacerbate coastal erosion. Already, coastal erosion is affecting many parts of the state and The Victorian government is providing funding to tackle the problem at beaches such as Apollo Bay, Lakes Entrance and Mallacoota. Going forward, the CoreLogic research suggests that rising sea levels are likely to exacerbate coastal erosion across many of the state’s coastal areas.
In its research, CoreLogic and Munich analysed more than 2.5 million Victorian residential properties to assess climate hazard ratings and risk scenario outcomes appended at property level. The research modelled a range of climate risk scenarios and outlined Victoria’s hazard profile and overall risk level for properties exposed to bushfire, drought, precipitation and sea level rise. It quantified the value and volume of properties exposed to different climate hazards and assigned standardised risk ratings.
The research comes as CoreLogic seeks to promote its Climate Risk Solution as an analytical tool, which enables business and government clients to advance their understanding of the potential impact of climate change on the property market by creating a concurrent view of natural hazards and estimated property values, and to map potential hazards in a way which can facilitate targeted approaches to risk management and customer education.
Dr Pierre Wiart, CoreLogic’s Head of Consulting and Risk Management Solutions, said the potential consequences of climate risk should not be underestimated.
“Like most Australian states and territories, Victoria’s diverse landscape is vulnerable to severe weather events such as bushfires, floods and coastal erosion,” Wiart said.
“Future scenarios indicate that both bushfire and flood risks are likely to be on the rise across the regions due to drier environments but also increasing precipitation, albeit separately.”