Olympics to triple Brisbane median house price to $1.7 million, expert says

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on August 03, 2021
Olympics to triple Brisbane median house price to $1.7 million, expert says

Brisbane will host the 2032 Olympics in 11 short years, and its median house price could breach seven figures in that time, according to one expert.

According to CoreLogic, the Brisbane median dwelling price at July 31 was $598,615, making it the fifth-most affordable capital city in the country, while the median house price sits at $674,738. 

But PRD Research chief economist, Dr Diaswati Mardiasmo, noted this affordability could be short-lived, given the trend of house prices when Brisbane has hosted other global events. 

PRD's research found applying the same level of growth seen in the 11 years to the G20 Summit in 2014 and and the year after would take Brisbane's median house price to $1.7 million in 2033. 

Dr Mardiasmo noted there were differences seen in the pace of growth in past events, but even going at "half-strength" would see the median house price reach $1.2 million by 2033. 

"Hosting both Expo 1988 and G20 Summit has served the Brisbane property market well," she said.

"That is both in the short term of one year after the event, and the long term throughout the 12 years time frame of preparation, hosting, and post-event." 

Dr Mardiasmo's research found in the years leading up to and shortly after the Queensland capital hosted the World Expo in 1988 and the G20 Summit in 2014, the suburbs where they were based saw exponential growth. 

In the 11 years prior to the Expo, Brisbane Local Government Area (LGA) median house prices grew by 278.8% and prices in South Bank and its surrounding suburbs grew by an average 335.3%. 

In the year after, the LGA house price grew by almost 30%, and South Bank and its surrounding suburbs grew by an average of 19.1%. 

In the 11 years leading up to the G20 Summit, and the year after, the Brisbane LGA median house price grew by 112.7%.

In the year after the Summit, South Bank and its surrounding suburbs' median house prices grew by an average of 10.3%, compared to 6.0% growth for the wider Brisbane LGA.

"The 2032 Olympic Games provides a golden opportunity for our three levels of Government to work together to create crucial infrastructure and unlock land supply," Dr Mardiasmo said.

"Increasing supply is key to housing affordability, given the potential demand the Games will attract.

"The prospect of a $1 million median house price for Brisbane is a real possibility."

Million dollar city 'sooner rather than later'

Using data from the Sydney Olympics, Newington, where the Games were mainly based, and the surrounding suburbs saw median house prices grow by an average of 13.4% in the year after the Games. 

Applying this growth to the current Brisbane median house price would take it to $918,540. 

"Bearing in mind Olympics 2032 is still 11 years away and based on how the Brisbane market is travelling, the potential to eclipse this price point is high," Dr Mardiasmo said.

"Regardless of the calculation method, the conclusion points us to Brisbane becoming a $1 million median house price city sooner rather than later."

Photo by Vladimir Haltakov on Unsplash

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Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.


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