DROUGHT TO PROPEL "OASIS CHANGE"

May 21 , 2007 12:37pm
Article from: news.com.au

• 'Sea change' to be followed by 'oasis change'
• Buyers to seek out water as drought continues
• Electricity sector now fastest-growing emitter

AUSTRALIA'S drought could propel the next property trend as homeowners move in search of water, a national property researcher said today.

As the nation became drier, the "sea change" and "tree change" phenomena would be followed by an "oasis change", said Terry Ryder of investment advisory group Hotspotting.

Areas with high rainfall or secure water supplies would become "oasis hotspots" as water availability influenced more buyers' decisions, Mr Ryder said.

"The ongoing drought, the subsequent introduction of water restrictions and the increased cost of water use has already propelled the issue up the list of buyers' priorities," he said.

Townsville and Maleny in Queensland, Perth, Dubbo and Hobart were identified as potential hotspots, while Mr Ryder said dwindling water supplies in eastern capital cities could affect the long-term property market in those areas.

"The oasis change will be a factor amongst baby boomers looking to find a nice place to retire and working families who just want to plant some cherry tomatoes and keep their car and driveway clean," Mr Ryder said.

The drought and global warming

In October last year, Australia was identified as one of the countries most vulnerable to climate change in a report prepared by former World Bank economist Sir Nicholas Stern.

As the driest continent on Earth, Australia was particularly vulnerable to changing rainfall patterns caused by rising sea temperatures, the report said.

The report predicted the planet would warm by several degrees unless decisive action was taken to reduce greenhouse gases.

While a small rise in temperature could actually benefit some countries, others – including Australia – would have their water shortages exacerbated, the report said.

"Water supplies to big cities will become more difficult (and) Melbourne's could fall by 7 to 35 per cent with only 2C of warming.

"River flows in NSW, including those supplying Sydney, have been predicted to drop by 15 per cent for a 1C to 2C rise in temperature," the report said.

Electricity emissions growing

Mr Ryder's comments came shortly after news that electricity production had overtaken transport as the fastest-growing source of greenhouse gas pollution in Australia.

Phil Potterton of the Bureau of Transport and Regional Economics said greenhouse gas emissions from the electricity sector were now growing faster than those from transport.

"We have tended to talk about transport as the fastest-growing source of emissions," Mr Potterton told a parliamentary committee today.

"But I think that's no longer the case."

Transport emissions have traditionally grown at about 2 per cent per year.

With Jessica Marszalek and AAP