Is mandatory seller disclosure of flood risk necessary? A Brisbane, Australia, case study
Journal of Property, Planning and Environmental Law
ISSN: 2514-9407
Article publication date: 22 May 2023
Issue publication date: 13 June 2023
Abstract
Purpose
Information on the impact of flooding is fundamental to mitigating flood risk in residential property. This paper aims to provide insight into the seller disclosure of flood risk and buyer behaviour in the absence of mandated seller disclosure.
Design/methodology/approach
This paper adopts a case study approach to critically evaluate the matrix of flood information available for buyers purchasing residential property in Brisbane, Queensland. This paper uses big data analytic techniques to extract and analyse internet data from online seller agents and buyer platforms to gain an understanding of buyer awareness and consideration of flood risk in the residential property market.
Findings
Analysis of property marketing data demonstrates that seller agents voluntarily disclose flood impact only in periods where a flooding event is anticipated and is limited to asserting a property is free of flood risk. Analysis of buyer commentary demonstrates that buyers are either unaware of flood information or are discounting the risk of flood in favour of other property and locational attributes when selecting residential property.
Practical implications
This research suggests that improved and accessible government-provided flood mapping tools are not enhancing buyers’ understanding and awareness of flood risk. Accordingly, it is recommended that mandatory disclosure be introduced in Queensland so that buyers are more able to manage risk and investment decisions before the purchase of residential property.
Originality/value
This paper contributes to existing literature on raising community awareness and understanding of natural disaster risks and makes a further contribution in identifying mandatory disclosure as a mechanism to highlight the risk of flooding and inform residential property purchasers.
Keywords
Acknowledgements
The authors wish to acknowledge the contribution of Dr Rouhshi Low in reviewing and editing earlier versions of this paper, and the financial assistance provided by the Consumer Policy and Regulation Research Group, QUT Law School, Queensland University of Technology.
Funding: was provided by the QUT Law School Centre for Commercial and Property Law. This Centre no longer exists due to changes in the School's research funding model. So technically is the former Centre for Commercial and Property Law.
Citation
Brown, C., Christensen, S., Blake, A., Indraswari, K., Wilson, C. and Desouza, K. (2023), "Is mandatory seller disclosure of flood risk necessary? A Brisbane, Australia, case study", Journal of Property, Planning and Environmental Law, Vol. 15 No. 2, pp. 83-105. https://doi.org/10.1108/JPPEL-08-2022-0029
Publisher
:Emerald Publishing Limited
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