It’s the year 2031 and the count down is well and truly on for the much anticipated Brisbane 2032 Olympics. The 2032 Olympics however, will be a bit different…The games will be quite widespread, with events taking place in Brisbane, Redland, Moreton Bay, Scenic Rim and Ipswich. Some preliminary rounds of certain sports, will also span across Cairns, Townsville, Toowoomba, Sydney and Melbourne.
But what does this major event mean for the property market? Let’s take a look at the variables.
HOW HAS THE OLYMPICS PREVIOUSLY IMPACTED CITIES?
Once crowned the winner, each city tends to spend an exuberant amount of money to prepare for the games, this includes implementing roads, enhancing airports, and constructing rail lines to accommodate the large influx of people. Not to mention the build or re-upgrade of stadiums, sports centres and the very important Olympic Athletes Village.
Here is a brief overview of what some of the previous host cities spent:
- Rio 2016 – $20 billion
- London 2012 – $14.6 billion
- Beijing 2008 – $42 billion
- Athens 2004 – $15 billion
- Sydney 2000 – $4.6 billion
Hosting the Olympics is a large scale, high-risk project with a number of variables that can make or break a city. There are pros and cons to winning the top spot, including:
- Pros: Tourism boost, job creation, local economy boost, new infrastructure, boost global trade and stature.
- Cons: financial drain, expensive infrastructure can be misused in future, can disrupt locals.
Despite the negatives, statistics do show that being named the host city, greatly impacts the property market.
According to Realestate.com.au housing data drawn from Sydney’s successful 2000 Games showed property prices rose at a phenomenal rate as soon as they were announced the winner in September 1993.
In the decade that followed Sydney being awarded the 2000 Games, the median house price rose more than 140 percent, from $188,000 in 1993 to $454,250 in 2003.
WHAT ARE THE PROJECTIONS FOR THE BRISBANE GAMES?
If the Brisbane property market follows suit, the median house price across Greater Brisbane would jump from $516,000 to more than $1.24 million by 2031.
The most prominent influences will be made apparent in the years leading up to the games, rather than during the four weeks of the Olympic and Paralympic games themselves.
Large infrastructure projects tend to have a positive influence on housing prices, with the extra requirement for workers creating additional demand for housing during the construction process. As more detail comes to light about where these projects will be located we should get a better understanding of the housing market opportunities, however, the obvious candidate for an uplift in demand is Woolloongabba and the surrounding suburbs.
However, with the span of the games covering surrounding areas, it is predicted that property prices will rise in these areas also.
Certain statistics are also hinting at some major investment growth on the Gold Coast. Real Estate Institute of QLD Gold Coast chairman Andrew Henderson said growth could be expected in many parts of the city. He mentioned, “A large-scale event like the Olympics is going to stimulate significant growth for the Gold Coast, especially in any areas around construction or upgrades of infrastructure, such as the proposed rail stations at Merrimac, Pimpama and Helensvale, and also the length of the route along the light rail where you will be able to walk to stations all along the Gold Coast Highway from Mermaid Beach to Coolangatta,”.
HOTSPOTS FOR BUYING & INVESTING
- Woolloongabba and surrounding suburbs: Close to the games epicentre (the Gabba). Woollongabba apartment prices are at the more affordable end of the spectrum, with a median unit value of $458,000. The low prices and proximity to major investment projects will attract significant interest from both property investors and developers.
Buyers should also look into:
- Redcliffe Peninsula – a recent rise in sales activity and double-digit property price growth over the last 12 months amid the mass exodus to regional areas.
- Ipswich – boasting both affordability and proximity to job hubs, with this area showing “particular uplift” at the beginning of this year.
- Logan – “one of Queensland’s fastest-growing communities” and an “investment hotspot” in south-east Queensland.
- Moreton Bay – this region is seeing major injections of infrastructure spending, and sits near Brisbane’s CBD, airport, the Port of Brisbane and the Sunshine Coast.
- Redland – this area is attracting people due to its beachside location as well as its urban renewal, and is just half an hour from Brisbane CBD.
TAYLAH ANTONIOLLI – MARKETING & COMMUNICATIONS COORDINATOR
07 3202 3040
A go getter and doer, Taylah is a no excuses, get the job done kind of girl. With a strong work ethic and high attention to detail, Taylah is happy to help out wherever she can. Armed with a degree in business specialising in marketing and public relations Taylah brings fresh ideas and innovation to the iThink team.