Hosting the 2032 Olympics isn’t just a moment of pride for Brisbane; it’s a pivotal event that’s set to reshape the city’s economic landscape. Experts, including the Westpac Business Bank Chief Economist Besa Deda, predict this global event could see at least $17 billion of economic and social benefits for Australia. This influx is anticipated to trigger a wave of infrastructure developments, job opportunities, new businesses and a surge in demand for accommodation.
Let’s take a closer look.
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Olympics’ Impact on Property Markets Over Time
Throughout history, cities hosting the Olympic Games have frequently experienced substantial economic shifts, often accompanied by significant increments in property values.
An illustrative instance comes from Barcelona, which hosted the Games in 1992. During the five years leading up to the event, property values skyrocketed by an impressive 130% .
Similarly, London, the host of the 2012 Olympics, witnessed notable albeit more modest growth. Housing prices climbed by 26% following the announcement of London as the host city, encompassing even less favoured districts. These upward trends persisted beyond the Games’ conclusion.
The case of Sydney, the host of the 2000 Olympics, presents a compelling narrative. Between 1993 (the year of the announcement) and 2003 (three years post-Olympics), the median house price in Sydney experienced an impressive cumulative growth of 96.2%.
This translates to an average annual rise of 8.7% during that particular period. It’s worth highlighting that Sydney’s performance outshone all other major domestic capital cities during this timeframe, surpassing Melbourne by 12.4% and Brisbane by 26.6%. This sets the stage for Brisbane to seize this promising opportunity and propel its property market to new heights.
Source: Abelson and Chung 2004
The Current State of Brisbane’s Property Market
Brisbane’s property market is on an optimistic path, with signs pointing towards steady growth until 2032.
Recent news reveals that Brisbane’s property prices have increased for the second consecutive month, suggesting a turning point from the market’s downturn.
According to CoreLogic, Brisbane’s housing market experienced a notable increase of 1.4% in July 2023. This surge has elevated the median dwelling value in Brisbane to $735,394, marking a significant 1.4% rise compared to the previous month. Furthermore, the quarterly growth of 4.2% positions Brisbane as the second-highest quarterly growth among major cities behind Sydney.
Low vacancy rates are driving swift home purchases across Brisbane, appealing to both newcomers and experienced property investors. While a balanced market has a vacancy rate of around 3%, Brisbane’s current rate is below 1%, favouring landlords. This trend has led to rising rental yields, particularly in inner-city apartments and student accommodation.
The surge in the Greater Brisbane region’s population due to migration and relocations is amplifying the demand for housing and exerting upward pressure on prices.
With the added factor of Brisbane hosting the 2032 Olympics, the city’s residential property market is heating up. This momentum is expected to persist in the years leading up to 2032.
Why the 2032 Olympics Benefit Brisbane’s Property Market?
The Olympics often inspire cities to improve their infrastructure and create appealing spots for tourists. This can raise property values. Also, the Olympics can attract foreign money as investors want to benefit from the event’s economic advantages.
A list of infrastructure investments as part of the Brisbane Olympics Master Plan includes:
- New $1b Stadium: Gabba to be rebuilt as main Olympic stadium
- Athlete accommodation in Northshore Hamilton
- Brisbane Arena near the Roma Street Parklands (to host the Olympic Swimming, Olympic Water Polo finals and Paralympic Swimming)
- Brisbane Indoor Sports Centre at Albion
- Chandler Indoor Sports Centre
Apart from the venues dedicated to the Olympics, various projects are currently in progress. These include initiatives like the Cross River Rail, Brisbane Metro, a hub for entertainment and lifestyle at Queen’s Wharf, and the enhanced International Cruise Terminal, among others.
Brisbane Olympic Game: $2.7 billion Gabba rebuild (The Australian)
The upcoming 2032 Games in Queensland will bring a lot of money to the area. Research by KPMG says the event will get $8.1 billion, including $4.6 billion for tourism and business, and a big $3.5 billion for social improvements. Plus, it’s expected to make around 91,600 jobs in Queensland and a whopping 122,900 all over the country. These are all good things that will probably affect the housing market.
With all these things happening, more people will want homes and properties. This might mean higher house prices and better rental income. So, it could be a great time for investors to enter the Brisbane property market.
Which Areas Will See Price Surge After the 2032 Olympics?
PRD’s specialised report on ‘Olympics 2032: The Year Following the Announcement’ unveiled the potential positive impact of the international event on Brisbane’s property market.
PRD’s research team closely studied the influence of major events like the Sydney Olympics in 2000, Brisbane’s Expo 88, and the G20 Summit in 2014 to assess the growth in median house prices.
The report highlights a 14.3% increase in median house prices during the year after each respective event.
With the approaching 2032 Olympic Games, Brisbane stands on the brink of a significant transformation. While certain areas are poised for remarkable changes, it’s crucial to recognize that the entire city will feel the reverberations created by the Games. Notable areas of interest include:
- Hamilton: Selected for the Athlete’s Village, accommodating the majority of participants and Olympians. The district also underwent a $650 million enhancement for Kingsford Smith Drive.
- Tennyson: Slated as the backdrop for the 2023 Olympic tennis events.
- Chandler: One of the suggested venues for the 2023 swimming competitions.
- Woolloongabba: The focal point of the forthcoming $1 billion renovation for the Gabba stadium.
Upcoming 80,000-seat Brisbane Stadium for the 2032 Olympics (Source: Austadiums)
Where to Invest?
In addition to the mentioned neighbourhoods, Ipswich City Council officially endorsed the proposition to host the 2032 Olympic and Paralympic Games in South East Queensland, advancing Ipswich’s potential role as a host city.
“North Ipswich Reserve Stadium has the potential to play an important role as both a venue and training facility in the lead up to the 2032 Games.”
“The 2032 Olympic and Paralympic Games bring with it a unique opportunity for Ipswich, the fastest growing city in Queensland, to develop the economic, infrastructure and tourism benefits,” Economic and Industry Development Committee Chairperson Councillor Nicole Jonic said.
It is undeniable that the entire city of Brisbane will thrive. The Australian government’s investments in infrastructure, transportation, and allied initiatives will boost the city’s quality of life. These improvements are a potent recipe for fostering a more dynamic, interconnected, and thriving Brisbane.
Consequently, the event will inevitably increase property values in Brisbane and a stronger housing market.
As one of Ipswich City Council’s fastest-growing suburbs, Redbank Plains presents an attractive prospect for investors seeking to diversify their property portfolio. Its strategic location positions Redbank Plains to benefit from over $13 billion in both public and private investments in the region. Notable projects include the $1.4 billion Ipswich to Springfield train line, a $710 million expansion of Ipswich Hospital, and over $2.1 billion in local motorway upgrades.
Coupled with a booming population, substantial private investments, and the infusion of billions in new infrastructure, Redbank Plains serves as the centre of some of Queensland’s most significant developments and compelling opportunities. This dynamic environment makes Redbank Plains an appealing choice for investors looking to tap into the area’s growth potential.
Is Now a Good Time to Invest in Brisbane’s Property Market?
The existing market signals strongly suggest that Brisbane holds promise as a growing market, worthy of consideration by savvy investors. This presents an excellent opportunity to enter the market and benefit from its ongoing growth.
Whether you’re new to property investment or a seasoned investor looking to capitalise on the Olympic excitement, St Trinity team is here to support you every step of the way.
The path to making the most of Brisbane’s property market starts with one simple step – and that step is yours to take.
Chat with us today at (02) 9099 3412 or enquire below.