The Olympics are coming back to Australia as Brisbane has been elected to host the Games in 2032. The International Olympic Committee's decision has placed a global media spotlight on Brisbane and South-East Queensland. Planning is already underway to create the infrastructure needed to host the event in addition to the influx of athletes, officials, and tourists across Brisbane, the Gold Coast, and the Sunshine Coast.
According to Terry Ryder, "The investment activity and media focus will create national and international interest in the affordable lifestyle offered by the Gold Coast, Brisbane, the Sunshine Coast, and all of Queensland. The next 10 years will be a great time to own Queensland real estate."
Billions of dollars are set to be poured into upgrading Brisbane and surrounding areas, and the impact this is going to have on the housing market is undeniable.
Infrastructure Upgrades
The Brisbane Olympic and Paralympic Games are set to cost around $5 billion. It’s important to note that the Olympics won’t be entirely hosted in Brisbane. Sporting venues on the Gold Coast and Sunshine Coast will be utilised in addition to venues in Redland, Moreton Bay, Scenic Rim, and Ipswich.
According to the Brisbane 2032 Olympic Plan, 84% of venues used will be existing or temporary. This will include 3 main hubs throughout the state, which will host 28 different sports. Of these venues, 21 will be in Brisbane, 7 on the Gold Coast, and 4 on the Sunshine Coast.
The Gabba Stadium will host athletics events, as well as the opening and closing ceremonies. The stadium will also receive a $1 billion rebuild, which will increase the stadium’s capacity from 42,000 to 50,000 seats.
In regards to new venues, there will be a 15,000-seat aquatic centre built in Brisbane’s CBD in addition to a 12,000-seat basketball facility and a 10,000 seat gymnastics and boxing centre.
An athlete’s village will be built on the Brisbane waterfront, with alternative accommodation available on the Gold Coast, Sunshine Coast, and Kooralbyn.
For spectators, travel throughout the games will be aided by the completion of the Cross River Rail, Brisbane Metro, and Coomera Connector.
How are property markets likely to benefit from the Olympic Games?
The most significant positive influence on the housing market is likely to be seen in the years leading up to the Olympics, rather than during the 4 weeks of the Games themselves.
According to Tim Lawless from CoreLogic, "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. 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 amenities introduced to the area including social and retail outlets."
Brisbane's median house price sits just under $700,000 yet some economists tip this figure will more than double by the time the Games roll around in 2032.
Brisbane real estate agent Col Kelaart recently commented, "For now at least, if you're coming from another capital city to buy in Brisbane, you'll have plenty of change left in your pocket, but the figures will almost certainly double by 2032, especially in key infrastructure suburbs."
At the top of the rank is Hamilton, where the Olympic village will be built and the median house price is already about $1.6 million. It's likely to jump to more than $3 million within a decade. Real estate in Tennyson, where the Games' tennis tournament will be staged, is expected to rocket from $970,000 to about $2 million. Chandler, which will host the gymnastics, is forecast to soar from $1.6 million to $3 million, while Woolloongabba will probably reach $2 million from a current median of $950,000.
In addition to being a win for the housing market, The State Government’s 2032 Olympic and Paralympic Taskforce found the Games could create around 130,000 direct jobs, including 10,000 in the year of the Games. The Value Proposition Assessment created by the task force also revealed there is an estimated quantifiable economic benefit of $7.4 billion.
In conclusion, housing markets in Brisbane, the Gold Coast, the Sunshine Coast, and surrounding suburbs are expected to flourish over the next decade. The planned infrastructure upgrades taking place to accommodate the 2032 Olympic and Paralympic Games are set to make locations around Queensland even more desirable.
If you have any questions about housing markets in Brisbane or surrounding suburbs, please get in touch.
