2032 and the Brisbane Olympics may seem like they’re a long way off, but the benefits to our real estate industry are already being felt. And for Brisbane, and indeed the whole of Queensland, the positive effects are only going to continue! That’s especially true if we take into account the Olympic effect past host cities have enjoyed. Let’s break those down for you:
Past Host City Wins
History tells us that when a city hosts the Olympics, they’re thrust onto the world stage in a big way. Advanced economic activity in the form of infrastructure and stadium construction provides jobs and attracts workers, and the flow of funding into the city sets its economy on a flyer. It becomes a household name during the Olympics, and that global recognition promotes interest and boosts migration.
All of this equals very favourable conditions for real estate growth in the lead up to, during and after the Olympics. Here’s how past cities fared in this regard:
Sydney: 57% surge in property prices in 8 years preceding 2000 Olympics.
Barcelona: 130% increase in housing prices ahead of the 1992 Olympics.
London: Average house prices in some areas have more than doubled since hosting the Olympics in 2012. Massive gentrification of East London areas occurred.
These are some big price increases, and we’re likely to see similar in Brisbane, with the effects filtering all around South East Queensland and to regional Queensland areas.
Queensland Population Boom
Underpinning our upward real estate trajectory leading into the Olympics Games is our huge population growth over the next few years. According to a Property Council of Australia survey, over 220,000 people will leave Victoria and Sydney and migrate north to settle in Brisbane. This doesn’t even take into account international migration or migration from other states.
When everything else is accounted for, the Queensland population is set to grow by 1.2-million people between now and the end of 2036, four years after the Olympics.
Remember, it’s not just the Olympics drawing people in. In comparison to Sydney and Melbourne, Brisbane is very affordable when it comes to buying a home, a strong attraction for both investors and people looking for a change. Then, there’s the incredible weather and lifestyle we have on offer here. You can’t beat our easy winters and long, warm summers!
Jobs are Key to Olympic Real Estate Success
When it comes to property price growth, jobs are essential – they increase the purchasing power of the population and help people with entry into the market. The 2032 Olympics are going to create 91,600 jobs in Queensland, while bringing $8-billion worth of economic and social benefits to the state. This is another key factor in the incoming surge in our real estate strength.
Regional Queensland Set to Benefit
The regions are set to enjoy prolonged real estate growth leading up to the Olympics too, particularly since the government has prioritised them with their ‘Big Build’ four year capital program. This is an “ongoing investment to improve liveability and sustainability of our communities and support our great Queensland lifestyle.” The total investment is $89-billion, of which over 65% spent in the next financial year will be outside of Greater Brisbane.
This will fuel development and prosperity in regional areas, increasing Queensland’s capacity to attract people and its capability in supporting them and allowing them to prosper.
Talk to the Brisbane Real Estate Experts
Here at The Henry Wong Team®, we’re incredibly excited about the direction real estate is taking in Brisbane and Queensland. With the Olympics occurring here within the next decade, our industry is set to go from strength to strength. If you have any questions or want to chat about what this means for real estate in your area, get in touch. Henry is always more than happy to chat all things property!