Hi Darren, I was actually wondering the same thing so I looked at history of natural disasters and the effects this had on the property prices and interest rates. I learned in 1999 there was a massive hail storm in NSW which cost the government and insurance companies millions, and it was the most expensive natural disaster in history of Australia to date (not including the current floods).
I then researched historical data of median house prices and interest rates over the past 20 years. I discovered there was actually a property boom in 1999 and the interest rates were not adversely effected. I also compared other natural disasters (dates) and the historical data of interest rates and property prices.
I guess it comes down to supply and demand.
If builders, chippies etc are busy reconstructing existing properties, first home buyers and investors alike, will turn to purchasing existing properties, once supply slows prices will naturally increase.. as long as the interest rate does not skyrocket, and this doesn't seem to be likely.
Economists have many opinions about the property values and interest rates, generally it seems there will be a property boom 2012, interest rates are likely to increase in April and September 2011.. but we will have to wait n see I guess.
I hope this helps..

Amy