2032 Brisbane Olympics - What it could mean for your property?

But what will it mean for the local property market? With the Olympics still 10 years away, it is difficult to put a definitive answer on how property prices will react. But we can get a good idea of what to expect by looking at how property markets in other Olympic cities performed.

How did other host cities perform?

We’ll start by looking at the Barcelona Olympics in 1992 which saw local property prices rise by 130 per cent, prior to the games. This is an impressive result, but it can mostly be attributed to the massive infrastructure investment needed to host the games themselves. Brisbane and Queensland will not require this level of investment.

Fast forward to the Sydney Olympics in 2000 and the city saw property prices increase by 88 per cent. Another outstanding performance, but it should be noted that this coincided with a period when Australia was benefiting from flourishing economical conditions. That may or may not be the case in 2032.

Looking at London in 2012 and the city saw house prices rise by 38 per cent. And there is evidence that the city is still benefiting some 9 years on. House prices across the city have risen by an average of 5.6% a year since 2012, with boroughs that saw a direct investment as part of the games faring even better, rising by an average of 6.9 per cent.

What is the forecast for Brisbane?

If the performance of other host cities is anything to go by, Brisbane property prices should see healthy gains in the coming years. However, these are likely to be much more localized, because the Brisbane games are to be hosted across a large geographical area that includes the Gold Coast, Sunshine Coast, Redland, Moreton Bay and Sydney.

In some ways, this is a good thing because the benefit of the games will be spread over a larger area. But it inevitably means that property prices will be less affected than they otherwise would be. However, some parts of the region will still see significant infrastructure investment, and these are the areas that will benefit the most.

The areas set to receive major infrastructure investment

The Olympics will see upwards of 180,000 spectators attending events every single day. That means a total of 20 million individual journeys will be made across the 16-day duration of the games. So it is pretty obvious to anyone who has used Brisbane's creaky public transport system, that it will struggle to cope with the influx of visitors.

The city's road, sewer, water and communications infrastructure is also not designed to handle that level of traffic. Significant investment will therefore be required to upgrade these facilities, which should, in turn, bode well for property prices in Albion Park and the Central Business District.

Possible Olympic infrastructure investment projects:
Cross River Rail Project
Coomera Connector
Centenary Bridge Duplication
SEQ Fast Rail Project
Australian NBN upgrades
Road improvements
Water and sewer upgrades
Sporting facilities to be constructed or upgraded

Along with the above-mentioned infrastructure investments, other areas will see significant investment in new sporting facilities. Brisbane will not see the billions invested in infrastructure like previous host cities, however. The city will instead make use of existing facilities in an attempt to keep costs down.

This will mean only a handful of new facilities will be constructed, while others will see significant investment. Properties located close to any of these facilities will most likely result in above-average price gains. And if other host cities are anything to go by, these gains should be sustained long after the athletes have left.

The sporting venues to be constructed or upgraded:
A new Olympic Stadium in Albion Park, Brisbane
A new Indoor Sports arena, Chandler, QLD
A new Indoor Sports Arena, Brisbane, QLD
A new Whitewater Centre, Redlands, QLD
A new Flatwater Centre, Larapinta, QLD
Upgrades to Ipswich Stadium, Brisbane
Upgrades to Brisbane Entertainment Centre
Upgrades to Brisbane Aquatic Centre
Upgrades to Queensland Sport & Athletics Centre
Redevelopment to the Sunshine Coast Stadium, Kawana Waters
Athlete's village to be developed into apartments

One major difference between the way Brisbane will host the games and previous host cities is that the athlete’s village will be spread across multiple locations. Initial proposals indicate that a ‘small’ athletes village will be built in Brisbane to house 14,000 athletes. With the other athletes housed in separate facilities on the Gold Coast.

Organizers have said that the main athlete’s village will be designed so that it can be easily converted into apartments once the games have finished. However, such a large number of apartments becoming available in a short space of time may cause apartment prices in the inner suburbs to weaken, but this is only expected to be temporary.

Which areas should you invest in?

Trying to predict which areas will see the biggest gains is a bit of a guessing game at this point. What is certain, however, is that some metropolitan areas are set to receive significant infrastructure investment. This will have a knock-on effect with property prices in these areas set for strong growth over the coming years.

The following areas fall into the category of good investment opportunities:
Hamilton: Average house price $1.86m
Woolloongabba: Average house price $995,656
Albion: Average house price $978,662
Kangaroo Point: Average house price $1.075m
East Brisbane: Average house price $967,000, average unit price $460,332
Chandler: Average house price $1.8m
Herston: Average house price $1.07m
Ipswich: Average house price $410,935
Robina: Average house price $768,750
Bokarina: Average house price $1.16m

Property data supplied by CoreLogic.

As plans develop, new areas will become hot spots for investment. But with the information currently available, the above neighbourhoods represent a good opportunity to see double-digit returns over the next 10 years. But quite frankly, buying anywhere in Queensland is a good decision right now.

Need help finding the perfect investment property?

The Brisbane property market is sure to be one to watch over the next decade. This is great news if you already own a property here, but what if you are looking to buy? In that case, you will need an experienced real estate agent with the skills and experience to find the right properties

Sparrow Real Estate has over ten years of experience in the Brisbane market. We keep a close eye on sales prices and time on the market, which makes us uniquely qualified to spot the next great investment opportunity. So if you are looking to buy or sell in Queensland, get in touch with our team today for a FREE consultation.