How the 2032 Olympics will impact the Brisbane property market
Brisbane is coming off a stellar financial year of 13.2% growth and then comes the 2032 Olympic Games announcement!!
No longer can this city be considered the third wheel city to Sydney and Melbourne property markets. It is definitely holding its own. Overlay this with having the fastest population growth (ABS – Brisbane’s population grew by 1.9 per cent during 2019-20, recording the highest growth rate of all capital cities), one of the best preventions against covid (being lots of warm weather and sunshine), the world’s most amazing beaches… topped off with still being a very affordable city to buy and live in (though in 10 years’ time from now it might be a very different case!).
How good is Australia!
Australia will become the second country in the world to host the summer Olympic games in three different cities, with Brisbane’s 2032 Olympics now confirmed (ABC, 2021). This news doesn’t just benefit Brisbane folk, it stretches to every part of our beautiful county… for property investors Australia-wide, it’s next level excitement. The world will be watching us for the next 10 years…
The Olympic Venues and Regions
Brisbane’s pitch highlighted (See pitch video here) its plan for the venues and infrastructure which will primarily be in Southeast Queensland, with some venues across other parts of Australia.
Creating and showcasing these venues without a doubt will directly influence the property market growth in these areas.
What will influence market growth in the lead up and post Olympic Games:
The acceleration of infrastructure projects, of which 80 per cent were already in place (one of the compelling reasons QLD’s bid got across the line) requires further infrastructure to support access and ongoing maintenance – which leads to more jobs, for more people – who need housing. If you are currently a property investor you will know that getting tenants in your property is not a problem the Brisbane market is experiencing. Brisbane’s rental vacancy rate fell to 1.4 per cent in April from 1.7 per cent in January and was well down from 2.2 per cent a year earlier, backed by SQM Research.
The upgrading and adding to this infrastructure will play a role in the market growth. Tim Lawless from Core Logic has said “The proposed billion-dollar overhaul of the Gabba stadium is set to be the epicentre of Olympic activity. Along with the Cross River Rail terminal and plaza, this precinct is likely to see a lift in desirability”. Large infrastructure projects have a positive influence on housing prices. This again leads to an increased number of workers, which leads to a higher demand for housing during construction. It also creates a permanent housing uplift, through additional employment, improved transport, new commercial and retail precincts, and other benefits. Research on previous Olympics proves this property market growth, with the London 2012 Olympics seeing areas close to the Olympic facilities increase in value by 2 to 5 per cent.
Hosting the 2032 Olympics is also expected to create many jobs with a forecasted employment growth of 91,600 jobs in Queensland before, during and after the Olympics. This employment growth is estimated to support approximately 45,500 square meters of Southeast Queensland office net absorption annually over the next 10 years. As well as this, there is a large opportunity for new office development and refurbishment to meet the demand of new jobs, attract and retain talent in the Brisbane workforce.
In previous years the Olympics have allowed for regeneration and renewal of host cities. The Sydney 2000 Olympics established the renewal of Homebush Bay, with it becoming one of the country’s largest urban renewal projects (Sydney Olympic Park). Barcelona 1992 allowed for the redevelopment of the waterfront precinct where the Olympic village was located. The Brisbane 2032 Olympics will create many development opportunities across all sectors of Southeast Queensland. Regeneration of existing commercial precincts such as Inner South, Spring Hill and Petrie Terrace for example is likely to promote property market growth in these areas.
The Olympics is also an opportunity to gain national and international attention to attract capital to the city. The Olympics enhances the global profile of Brisbane. Ray White QLD Chief Executive, Jason Andrew said, the 2032 Olympics would most likely put Brisbane firmly in the sights of global property investors – “Our state has been long sought after for its world class beaches, sunny days and good climate but the lifestyle benefits would now be magnified. Now we can add into this mix infrastructure projects, population growth and the subsequent wage growth”.
The Olympics also creates a lot of exposure for the city. Historical IOC data has indicated that the audience per event is between 3 billion to 4.3 billion people worldwide, showcasing the hosting city to up to 65% of the global population. This will show to the world that Brisbane is an attractive location for global capital looking to diversify their investment portfolio.
The enhanced global profile and exposure additionally is expected to increase and diversify Brisbane’s population, consequently increasing the demand for real estate. The Olympics is expected to increase QLD’s share of overseas migrants, interstate migrants and transnational companies looking to operate in Australia. Areas such as Gold Coast southern beaches are set to become one of the most prestigious markets in Australia with an enhanced, international profile, and an increase in interstate migration.
This is the time to think about getting into the QLD market, if you are not already in it. If you are, it might be the time to up your stakes!
Just be mindful that there are markets within markets, all running off a different property clock. So the timing of where, when and what you buy, will determine the potential success of your investment.
At Search Party Property, we specialise in developing tailored investment strategies and will work with you to come up with a suitable plan of attack. We also regularly assess your strategy ensuring that it is fit for purpose and delivering the desired results.