Aussie town where land is ‘worthless’ due to sea level guidelines

Aussies in a small town are staring down losing their entire nest eggs as their land becomes worthless for a bizarre reason.

Blocks of vacant land along Victoria’s coastline have become “worthless” as new rules to account for climate change block the construction of new housing.

Henry and Veronica Luiz bought a lot in the town of Loch Sport, in Gippsland, back in 2016 with plans to retire there.

Mr Luiz has revealed, however, the patch of land now has “basically … zero value” after planning laws were changed to account for forecasted sea level rises over the next century.

Mr Luiz and his wife were told last year that planning authorities had retracted their previous intention to approve construction of a home on the site, having flagged support in 2018.

“I get a letter from the Wellington (Shire) Council telling me that, they will not approve any parcels of on undeveloped land that sit in that flood overlay,” he told news.com.au.

“Now my piece of land is worth zero.”

The patch of land in Loch Sport, Victoria. Picture: Supplied

Henry Luiz said his land was worth “zero”. Picture: Supplied

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The state’s flood plain management strategy now requires new builds in low-lying coastal areas plan for an 0.8m sea level rise. This is in addition to the 1.9m Australian Height Datum, which is based on current sea levels.

Locals have launched a petition to state parliament calling for a review on the conditions and potential compensation for people left out-of-pocket by the changes.

Loch Sport, population around 800, is located about 270km east of Melbourne – with the town straddling both Lake Victoria and Lake Reeve.

The town is nestled between two lakes in Gippsland. Picture: Supplied

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In an email sent to Mr Luiz in November, a representative from planning oversight body the West Gippsland Catchment Management Authority explained “that all coastal development will now be assessed against the future flood level of 2.7 metres”.

“The new assessment criteria means that the Authority can no longer support the construction of a single dwelling on your property, as the flood depth exceeds safety criteria,” it said.

Another staffer at the authority wrote in an email to Mr Luiz last month that the policy did not support “increased population risk”.

Mr Luiz had asked why plans to rebuild or extend houses in the area were seemingly supported, while new homes were not.

“Replacement dwellings and extensions to dwellings recognise an existing use of the land, and do not represent an increase in the risk to life and property as that risk is already existing,” it states.

“New development will result in an increase in the number of buildings and families exposed to the risk.”

Water elevation levels around Loch Sport. Picture: Google Earth

Mr Luiz said he and his wife had been paying rates and taxes on the land for years but now seemingly had no remedy to recoup their investment.

“Now we can’t build and can’t do anything. So I’ve lost money,” he said, estimating losses of $100,000.

“I’ve invested in that land that’s worth zero.”

Loch Sport real estate agent Rachelle Potts has been enlisted to try and sell the Luizs’ land.

But, she told news.com.au, the “devastating” impact of the flood overlay had left them and other local owners with “virtually worthless land”.

“It’s making it very hard,” Ms Potts said.

“At the moment, I can’t even get a buyer to look at a block with flood overlay on it. It’s too unknown.”

The flood overlay imposed on parts of Loch Sport.

Ms Potts, an agent in the area for 20 years, said 350 properties in the Wellington Shire area alone were affected by the flood overlays.

“I’ve got vendors on my books that had this block of land they’ve owned since 1970, never developed, but kept it as their nest egg for when they retire,” she said.

“And now they’ve just slashed $100,000 out of their retirement fund.

“I think it’s unfair what has happened.

“I can’t even sell the blocks that I have got sitting there at the moment for sale.”

Mr Luiz lodged the petition, which asks for a review of the controls and “more flexibility” for land owners.

It has more than 1200 signatures but needs 10,000 for the issue to be debated in state parliament.

Ms Potts has been urging the community to support the campaign: “we need to fight this”.

“We’re a town,” she said. “These blocks of land that people can’t build on scattered throughout the township.

“We want to see the town develop and keep moving forward.”

Danny O’Brien, the Member for Gippsland South. Picture: Facebook

Nationals Member for Gippsland South, Danny O’Brien, has sponsored Mr Luiz’s petition and asked for the government to clarify its position in parliament.

“It is disappointing for both landowners and our local governments, who are doing their best to navigate the minefield this change has created, that the Minister is failing to offer any real guidance,” he said in October.

“Our local governments deserve leadership from the state government on how these changes will impact future planning decisions for their towns.”

University of Melbourne coastal geomorphologist David Kennedy this week told the ABC the overlays were not “alarmist” and instead a “conservative estimate if anything”.

“What effectively the new overlays are doing is they are showing well this is where we know the water is going to be,” he said.

A Victorian government spokesperson said the policy protecting Victorians by ensuring homes were not being built in places that put lives at risk.

Wellington Shire Mayor Scott Rossetti told the ABC that its staff had to implement the requirements of the state government.

“It’s certainly something that we would rather support them (land owners) to build rather than be the bearers of bad news,” he said.

Originally published as Aussie town where land is ‘worthless’ due to sea level guidelines