What Brisbane’s Property Market Could Gain from the 2032 Olympics
Although it’s still 11 years away, many Brisbanites are already talking about the 2032 Olympic Games. Aside from the excitement of hosting the event, the positive effect of doing so intrigues a lot of people. Brisbane Lord Mayor Adrian Schrinner considers the event as a game-changer. It can bring 20 years of fast-tracked opportunities for the state, including the Brisbane property market. Will there be a significant surge in property prices? Read on to find out.
Case Studies of Past Olympics Hosts
The Journal of Economic Perspectives states that hosting the Olympic games has three major benefits:
- Olympic legacy – including infrastructure improvements and higher trade
- Foreign investment and tourism after the games
- Intangible benefits such as civic pride
The benefits are less clear when it comes to property prices. Lesser-developed host cities in the past, such as Barcelona, witnessed a significant increase in prices. They had a whopping increase of 130% before the 1992 Barcelona Olympics.
The increase was an effect of the major renovations that the city went through. This includes getting a high-speed train that leads to Madrid and fixing the city’s waterfront.
Sydney served as home for the 2000 Olympic Games and saw an increase of median house prices by 88%. However, other factors led to this increase, including political stability, tax reforms, grants and incentives for property buyers.
Will Brisbane 2032 Yield Positive Results for Its Property Market?
The lead-up to Brisbane 2032 will differ from the past games. The event won’t be held entirely in the state’s capital city. Instead, they will use sporting venues in the Sunshine Coast, Gold Coast, Moreton Bay, Ipswich, Scenic Rim, and Redland.
That is great news for Queenslanders because the benefits will be shared within the Southeast Queensland corridor. This includes:
- Big infrastructure projects have a positive effect on housing prices. The additional need for workers will increase the demand for housing during the construction phase.
- Big projects will leave a legacy of boosting the demand for permanent housing. This may be through higher employment. Improvements in transport infrastructure lead to better transportation options. Additional amenities like social and retail outlets may also attract more potential residents.
Woolloongabba Expected to Get the Biggest Gain from Brisbane 2032
Woolloongabba and its surrounding suburbs stand to be the biggest beneficiaries of the increase in housing demand.
The Gabba Stadium will have a billion-dollar overhaul since this is targeted to be the centre of Olympic activity. In addition, it will increase in desirability together with the Cross River Rail terminal and plaza.
Currently, investors are already drawn to the area. Approximately 2/3 of the housing stock in and around the suburb are being rented. The proximity of Mater Hospital and Princess Alexandra Hospital also help boost localised housing demand. The Brisbane CBD, Southbank precincts, and local universities are also easily accessible.
Woolloongabba unit prices are currently at the lower spectrum of inner south unit markets. The median value is AUD 458,000. It is AUD 85,500 cheaper than West End, and AUD 38,000 cheaper than South Brisbane.
All in all, the less expensive prices added with capital investment on infrastructure will be attractive to both developers and investors.
Get Your Brisbane Home Before 2032. Find the Best Home Loan Today.
The biggest impact on housing will be seen in the years prior to the Olympics rather than the event itself. If you’re looking for a great property investment, consider getting one in Brisbane.
There are several home loans options out there, so it’s important to do the proper research beforehand. A comparison website like Makes Cents will make this easier for you. You can compare their features side by side at the comfort of your own home.