October 6th, 2022
5 Questions to ask before buying a fixer-upper
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In case you haven’t heard, the 2032 Olympics will be held in Brisbane for the first time in history! It’s a big deal, not only for sports fanatics and Queensland’s tourism but also for the effects it could have on Brisbane’s ever-evolving housing market. The sunny state capital is the second best-performing capital city in Australia when it comes to property price growth. While the future is already looking bright for Brisbane, it may be the perfect time to lock down an investment property in anticipation of the Olympics. With this all being said, let’s take a look at just how the international sporting event will impact the property market and more specifically which suburbs will see the largest increase in value.
The biggest question you may have when considering the games is where exactly will the 3,000 athletes be housed.
The 2032 Athlete’s Village will be located in the relatively undeveloped Hamilton Northshore and follow the blueprint of the existing apartment complexes in the suburb. This blueprint for Hamilton will assist the Queensland State Government in avoiding falling into the trap of Rio De Janeiro and Athens who both went into substantial debt to construct their Olympic facilities.
With the Athletes Village only being used for a month, it poses the question of what will be done with the buildings after the games wrap up. Brisbane will look to follow the example of the Commonwealth Games Athlete’s Village which has been repurposed as residential buildings and event spaces on the Gold Coast. Furthermore, the construction for the games will bring forth over $500 million in private investment and 1,600 new construction jobs, which will boost the state’s economy both directly and indirectly.
What other factors are likely to drive property market growth?
Beyond the visibility that Brisbane will get both from in-person tourism as well as eyes on television, the sheer amount of job opportunities that the games will generate is likely to facilitate substantial economic growth for the Sunshine State, in turn positively affecting the property market. The games are set to support 91,600 new full-time jobs, which is not to be overlooked.
PRD Chief Economist Dr Diaswati Mardiasmo spoke on this, stating that “Job creation is one of the main recipes to property price growth, as it increases people’s purchasing power and their ability to enter the market”. He continued, “Further, the Olympics attracts population growth into the region which increases demand for housing…combined with the current lag in supply, such an imbalance can lead to further property price growth.”
We can use historical property market growth indicators to aid us in predicting the impact the Olympics will have on Brisbane’s property market.
When we look at historical growth indicators from events such as the Sydney Olympics held in 2000, Brisbane’s World Expo in 1988 and the G20 Summit held in 2014, we can see that the property market had grown by 14.3% in the year after each of these events. According to CoreLogic data, Sydney property values increased by 60% between the announcement in 1993 and the games in 2000, suggesting that property values will only continue to amp up in the lead-up to 2032. Westpac Business Bank’s Chief Economist, Besa Deda said that “The 2000 Sydney Olympic Games were estimated to inject around $6 billion into the Australian economy.”
So, which Brisbane suburbs will see the most growth?
Naturally, property values will likely increase across most of Brisbane and Queensland at large due to the widespread nature of the competition facilities. Whilst most facilities will be housed in the inner-city and Moreton Bay areas, the regional towns of Toowoomba, Townsville and Cairns will also house more specialised facilities, thus also reaping the property market benefits.
However, keeping our focus on Brisbane it’s predicted that houses and units within a 10-kilometre radius of the CBD will see a significant impact on their property values. More specifically Woolloongabba and South Brisbane in the city’s south and Herston and Spring Hill in the city’s north look set to become $1 million suburbs post-Olympics. Additionally, it’s predicted that Hamilton, Tennyson and Chandler will see large increases in their property market, both in terms of value and growth.
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Disclaimer:
Buyers and investors should consider conducting their own research and seeking professional advice before making any property purchases. The information enclosed has been sourced from SQM Research and the Reserve Bank of Australia and is provided for general information only. It should not be taken as constituting professional advice.
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