2032 Olympics: Will the Brisbane property market take the gold?
Updated: Aug 22, 2021
We recently heard some exciting news in Brisbane; the Olympics are coming to town for 2032. After winning the majority vote, the sunshine state was deemed the most favourable by the International Olympic Committee, and we’re excited for the opportunities that lie ahead.
Not only will we be able to see the world's best athletes compete at our local stadiums, but hosting the Olympics also provides a significant leap forward for our country, with potential for economic growth and social benefit for years to come. But what could it all mean for the property market? And how could it affect our potential buyers? With the support of Director of Stone Real Estate Bulimba, Phil Chillemi, we’re going to dive into the topic and attempt to uncover if the Brisbane property market could be a real winner of the Olympic announcement.
2032 will be Australia's third time hosting the Summer Olympics following Melbourne’s 1956 games and Sydney's 2000 games. The announcement of the Sydney games brought much excitement to the nation over 25 years ago.
Research shows that even though the 2000 Olympics were only held for ten days, its influence on the surrounding market, directly and indirectly, was substantial with a significant increase in the lead-up. The Melbourne Commonwealth Games in 2006 and the Gold Coast Commonwealth Games in 2018 also saw strong property growth. Not just in the host city but across the nation.
Another article with comments from Diaswati Mardiasmo, the PRD chief economist, said that the growth from the games could be consistent with the market's excellent performance following the G20 summit held in Brisbane in 2014.
While these past performances are impressive, there are always a number of factors to be considered, and many things that can influence the property market. From a global pandemic to rising interest rates, the property market comes with a great deal of uncertainty and cannot be reliant on the announcement of a sporting event. It does however provide insight into how an event of a similar magnitude impacted house prices and how the property market could repeat this performance, given how strong the market is at this point in time. This information provides a positive explanation of potential growth in Brisbane's property market and what we might expect over the coming years.
To be prepared to host this magnitude of an event, the Queensland Government has reported investing $4.5 billion into infrastructure and facilities across the state. Projects that are already confirmed to commence in the Brisbane region include the Gabba stadium, Cross River Rail Trail, overall uplift of the Woolloongabba area and surrounding suburbs, Hamilton and Robina area improvements due to these suburbs being proposed sites for athlete villages and upgrades to the M1 Pacific Motorway and Bruce Highway. These projects are the beginning of the upcoming changes, which could have an impact on the market due to additional employment options, transport options and travel efficiencies brought by large scale infrastructure projects, along with increasing social and retail amenities in these areas.
Property expert Phil Chillemi from Stone Real Estate Bulimba provides some commentary regarding drivers of growth.
"Interestingly it is not simply just a case of proximity and transport options which drives growth in these neighbouring suburbs. One of the key factors is lifestyle amenities within walking distance.”
"With that in mind, if you are looking for growth over the next decade both in terms of your property’s value and the lifestyle it offers; you may wish to look towards suburbs that have yet to experience the significant price growth we have seen recently but are likely to see further development of lifestyle amenities and those that are near aspirational suburbs which have higher median prices. As the Olympics approaches, you will benefit from an upswing in the suburban lifestyle, along with infrastructure improvements and generally positive sentiment from an event of this magnitude. Typical growth tends to be rapid when conditions are favourable (as they are right now!), followed by a flat period for the years that follow so targeting areas that have yet to see double-digit growth like their neighbouring suburbs may be a good strategy to consider."
What does this mean for buyers?
Infrastructure improvements benefit those most who live or own in the areas of the improvements. As a potential buyer or investor, the value that these new projects bring may be the incentive they need and those that have not yet considered this value might look to research what is being done before making their next purchase decision.
When should buyers start to look to purchase?
Although the games aren't for another 11 years, it does provide a possible explanation for increased demand in the property market. Based on trends, some experts even say that double-digit growth could be on the cards with the median house price in Brisbane to possibly reach nearly 1.2 million dollars by the time of the games; however this is all speculation, and reliant on many factors.
With these past trends, and some fantastic interest rates still available on finance, now might be a good time for buyers to consider their options. If the market continues to perform well and is boosted by the Olympic news, it could see buyers sitting in a great situation.
The demand in Brisbane could be strong in future years due to the games, not only from interstate buyers but also from overseas after travel begins to pick up in the coming years following the pandemic.
The announcement of the 2032 Brisbane Olympics is an exciting time as there is the potential for great opportunities that might come with it. If you are looking for a time to buy in the market or have been thinking about it, now could be a great time to consider options. There are many factors that could influence housing prices, so it’s vital you or your clients to speak with a Financial Adviser before making such important investment decisions.
Ending on the last comment, I’ll leave it to property expert Phill and his thoughts on the games,
“One element which excites me for the Olympic Games is that it is over 10 years away, which encourages property owners to maintain a longer-term view of their prospects for growth. Property is a long-term asset class, if you can purchase while interest rates remain low, research the location thoroughly, and keep an eye on the likely development in that area, you are likely to experience solid medium to long term growth in the value of your chosen property leading up to and post 2032!”
The team at Astute East Brisbane are more than comfortable having conversations with potential buyers to ensure they understand the full value of their purchase decisions. Although we won’t find out for a few more years, we hope that the Brisbane property market is on track to win.
A big thank you to Phil Chillemi Director of Stone Realestate Bulimba, for sharing your thoughts on this topic. To stay up to date with Phil and his team make sure to follow the stone bulimba instagram @stonebulimba or head to the Stone Asset Management website.
For more, on how the Olympics will shape the Brisbane Property Market, read Phil's blog.
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