Which of the following factors would typically DECREASE the market value of a residential property in Queensland?
Correct Answer
B) A flood hazard overlay applying to the land under the local planning scheme
A flood overlay designation signals increased flood risk, which typically reduces property values due to higher insurance costs, potential damage risk, and reduced buyer demand. The other options generally increase property value.
Why This Is the Correct Answer
A flood overlay signals hazard: higher insurance costs, possible damage, extra building requirements and a smaller pool of willing buyers and lenders. All of these tend to reduce market value.
Why the Other Options Are Wrong
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