What the 2032 Olympics means for Brisbane's property market

author-avatar By on July 22, 2021
What the 2032 Olympics means for Brisbane's property market

The city of the brown snake has won the right to host the 35th Olympiad, so what does that mean for Brisbane's housing market?

Wednesday's confirmation of Brisbane's right to host, after running unopposed, is set to launch a deluge of billion-dollar infrastructure projects, supported by both the Queensland and Federal governments.

CoreLogic's Asia-Pacific Research Director, Tim Lawless, said the most significant positive influence would likely be seen in the 11 years leading up to the Games, rather than the four weeks of competition. 

"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," Mr Lawless said.

"Large projects also tend to leave a legacy of a permanent housing demand uplift, either through additional employment or via other benefits such as improved transport options and travel efficiencies related to transport infrastructure projects as well as additional amenity introduced to the area including social and retail outlets." 

The Gabba, home of the Brisbane Lions and Queensland's cricket hub, is set to be the epicentre of the 2032 Olympics and will receive a billion-dollar facelift to increase its capacity. 

Mr Lawless said Woolloongabba, where the venue is located, would likely see a lift in desirability. 

"The area is already popular with investors, with around two thirds of the housing stock in and around Woolloongabba being rented," he said.

"The proximity of the Princess Alexandra Hospital and Mater Hospital provide a permanent level of localised housing demand, along with easy access to the Brisbane CBD, local universities and Southbank precincts." 

Woolloongabba units are currently some of the more affordable inner-south regions, with median unit prices sitting at $458,000, almost $100,000 lower than the nearby Kangaroo Point, and $85,000 lower than West End. 

Mr Lawless said other suburbs set to benefit from the Games were Hamilton and Robina, proposed athlete village locations, and the Gold and Sunshine Coasts, which would benefit from highway upgrades. 

Brisbane could see "double-digit growth" 

According to CoreLogic, Brisbane's median dwelling value was $586,142 as at 30 June, with prices up 13.2% in the past year. 

But PRD Research chief economist, Dr Diaswati Mardiasmo, said in June while the Sunshine State capital was relatively affordable now, an Olympic Games could see values skyrocket.

"If Brisbane is a confirmed host of the Olympics in 2032, with lessons learnt from Sydney and how Brisbane prices have travelled over the past 18 months, it wouldn’t be surprising to see a similar trend," Dr Mardiasmo told Savings.com.au.

"We might see property demand frenzy the year prior and after the Olympics, giving us double digit growth." 

Dr Mardiasmo pointed to when Australia last hosted the Games, and noted how dwelling values increased following this. 

"The year after Sydney Olympics 2000 the number of sales in Newington and its surrounding suburbs increased by 58.0%, and median house price increased by 13.4%," she said.

"There is anecdotal evidence from real estate agents that serve the areas around where Sydney Olympics were held, saying that the increase in prices impacted not only Newington but also all metropolitan areas."


Picture source: Twitter

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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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