Brisbane hosting the world’s biggest sporting event in 2032, Olympic and Paralympic Games, will create a 20-year pipeline opportunity for Queensland.
It catalyses prolonged growth across local transport and infrastructure, jobs and tourism sectors, which is positive news for the local property market currently experiencing boom conditions in selected regions.
We outline some of the key drivers that will directly impact the property market and investors’ buying decisions in Queensland.
Regardless of the Olympics, if the current growth rate of Brisbane was projected over the next 12 years, the median house price could reach $1.5 million. The current median house price in Brisbane is $674,738 (July 2021, CoreLogic).
PRD chief economist Diaswati Mardiasmo points out that hosting global events has had a positive effect on the property market in Brisbane, as evident the year after the World Expo 88, South Bank and its surrounding suburbs which grew by an average of 19.1%, and by 10.3% after the G20 Summit in 2014.
According to CoreLogic, Sydney property values increased by 60% between the Olympics announcement in 1993 and the Games in 2000, almost twice the growth recorded across the broader combined capital cities benchmark region, which grew by 34.6%. The Olympics and associated capital works were likely to be a pivotal contributor to the higher growth rate in the lead-up to the event.
It is hard to predict whether the effect of the Olympics on the property prices will be similar for Brisbane. But one thing is for sure - the current affordability and lifestyle appeal that Queensland has compared to southern states, the highest rate of interstate migration since 2003, and the returning expats are already contributing to strong property market performance in selected regions across the state.
Infrastructure, road, and public transport improvements that might have been a long term plan for Queensland have all been brought forward to be ready in time for the Olympics.
These projects will uplift property demand and values as they create jobs, improve connections and amenities. And as a result, they will significantly influence the convenience and the lifestyle appeal for home owners and tenants.
According to the Brisbane 2032 Olympic master plan, the events will be staged at more than 30 venues across South-East Queensland in Brisbane, the Gold Coast, Sunshine Coast, Logan, Ipswich and Redlands. The Games will fit around Queensland, as 84% of venues are already built or temporary.
An expanded Gabba stadium will receive a $1B rebuild and be the centrepiece of the Games. The remaining 16% of venues will be new venues, including a 15,000-seat aquatic centre in Brisbane’s CBD, a 12,000-seat basketball facility and a 10,000 seat gymnastics and boxing centre. An athlete’s village will be built on the Brisbane waterfront, with alternative accommodation available on the Gold Coast, Sunshine Coast and Kooralbyn.
The completion of the Cross River Rail, Brisbane Metro and Coomera Connector will aid spectator and visitor travel and the growing population, which is expected to increase by 1.5 million by 2041.
The 2032 Games are also expected to support 91,600 full-time equivalent jobs in Queensland and 122,900 nationally. A lot of this is attributed to the jobs associated with infrastructure development. As people take up these new jobs, they will create further demand for property rentals and sale markets, in addition to current demand from interstate migration and expats returning to Queensland. Not to mention demand from international skilled labour once borders open up.
If you are a property investor looking to capitalise on the projected growth that the 2032 Olympics is set to bring to Queensland, we can assist you!
EKR Property is a qualified property investment advisory that assists first-time and astute investors in sourcing, negotiating and securing their next investment property and building a property portfolio.
We can also introduce you to an A grade team of professionals, such as accountants, financial advisors, mortgage brokers, solicitors and property managers, to help you make informed and confident investment decisions.