Several parts of Rockhampton city regularly flood and one suburb, Depot Hill, is almost entirely inundated at least once every 26 years, with the last two major floods being January 2011 and 1991. The life cycle costs of flood affected houses are necessarily higher than equivalent flood free properties. The ability of the market to correctly price flood costs into the value of flood affected property is an indication of the significance of building costs on property values. This study examines the facts and perceptions surrounding flood affected land in Rockhampton, Queensland, Australia. Sales records from 1974 have been related to floods and other events by comparing Depot Hill to a physically similar adjacent suburb, Wandal. It was found that Depot Hill property averages 33% lower values than Wandal despite its other similarities, however the relationship is not stable. Fluctuations between the two locations do not appear to relate to flood events. A focus group comprised of local property experts concluded that several factors contribute to the difference that are only indirectly related to flooding. Overall, it appears that the impact of flooding on property values is considerably more complex and indirect than is generally believed. What is evident is that property value impacts are not clearly linked with lifecycle building costs.