What does the Olympics means to South-East Queensland real estate? Hotspotting's Terry Ryder
Ten years of intense investment and premium growth - that’s what the Olympics means to South-East Queensland real estate.
Confirmation that Brisbane will host the 2032 Olympics is a game-changer for the economies and property markets of South-East Queensland – and the state generally.
Property prices and rents are already rising in Brisbane, the Gold Coast and the Sunshine
Coast but the Olympics announcement will turbocharge markets throughout the region.
Spending on major new infrastructure has been pivotal in generating economic activity, jobs and real estate demand in SEQ in the past year – but the prospect of hosting the Olympics in
10 years’ time will generate an elevated program of investment and development.
The real estate industry tends to spruik a property boom after a major event like the Olympics but all the evidence suggests that the greatest impact for property markets occurs in the lead- up to the event, not in the aftermath.
History shows that major international sporting carnivals generate big growth beforehand.
The Sydney Olympics in 2000 and the Commonwealth Games on the Gold Coast in 2018 provide templates for how these big events impact local economies and property markets.
The years leading up to the 2018 Commonwealth Games on the Gold Coast saw increased real estate activity, thanks to the rising levels of construction of infrastructure and facilities, the jobs this generated and the consequent demand for real estate accommodation.
There were similar outcomes around the 2000 Olympics in Sydney.
The Olympics announcement also creates increased media focus on the SEQ region and the affordable lifestyle it offers. And it starts now – and will extend over the next 10 years.
As a consequence, the next decade will be a period of out-performance for real estate across Brisbane, the Gold Coast and Sunshine Coast in particular.
PIPA chairman Peter Koulizos has commented on what the 2032 Olympic Games may mean for the Brisbane property market.
“Research shows that residential property prices do perform better as a result of an Olympic Games," he says.
“A study on six host cities, from Los Angeles in 1984 to Sydney in 2000, suggests that the impact on the economy and residential property prices is not even. It depends on the planning and the scale of the Olympic investment.
“Research on the London Olympics showed that areas close to Olympic facilities increased in value by 2% to 5% higher than other areas.
“An investigation on the impact of the Sydney Olympics on the residential property market found that the markets of host suburbs experienced substantially higher growth during the bidding and pre-Olympic periods, but not after the Olympics were held.
“PIPA has conducted research into Sydney’s residential property prices pre- and post- Olympics that shows that from the time the announcement was made in September 1993 to the Olympics being held, Sydney was one of the best performing capital cities. However, post-Olympics, the rate of growth decreased significantly. “Based on our research and analysis, it is obvious that Brisbane and South-East Queensland will benefit from hosting the Olympic Games.
“However, the benefits will vary depending on the location of Olympic facilities and the new infrastructure to be built, especially infrastructure that will better link the Sunshine Coast and Gold Coast to Brisbane.”