New Flood Zones and What They Mean for Melbourne Homeowners

When it rains, it pours.. and lately, Melbourne’s property market has been feeling the ripple effects. Updated flood-risk maps across Victoria are changing the game for buyers, sellers and investors alike.

If you’ve heard talk of “new flood zones” and wondered what that really means (beyond a scary headline), here’s the lowdown. Because at Prop Culture, we believe in smart decisions, not panic buying or selling.

What’s Changed?

Recent updates from local councils and the Victorian State Government have reclassified a number of suburbs and streets based on new flood modelling, essentially data that predicts where flooding is most likely to occur during heavy rainfall or rising waterways.

That means some properties once considered “safe” are now tagged with a Land Subject to Inundation Overlay (LSIO) or Special Building Overlay (SBO). Terms that can sound technical but have very real implications for planning, insurance, and resale.

Why It Matters for Buyers

  • Insurance premiums: Expect higher costs if your property falls within a flood-affected area.

  • Bank lending: Some lenders are now running stricter checks or lowering LVR ratios in flood-zone postcodes.

  • Future resale: Buyers are becoming more cautious, so disclosure and transparency matter more than ever.

  • Due diligence: Checking overlays should be part of every pre-purchase checklist — not an afterthought.

 What It Means for Sellers

If your property has landed in a new flood zone, it’s not the end of the world, but it does mean being strategic.

  • Get an updated property report and confirm the exact overlay boundaries.

  • Be upfront with your agent and potential buyers, hidden surprises damage trust.

  • Highlight what’s been done to mitigate risk (e.g., elevated structures, new drainage, landscaping).

  • Focus on your property’s other strong selling points, location, lifestyle, improvements.

How to Check if You’re Affected

  • Visit VicPlan (the state’s free mapping tool) and enter your property address.

  • Review the “Overlays” section, LSIO or SBO are the key flood-related ones.

  • Your local council’s planning department can also confirm recent changes.

Dianne Kristel Catindoy