With Brisbane being awarded the 2032 Olympic Games, there’s no doubt that the city’s property market will be impacted in some way. Let’s take a closer look at how house and unit prices have changed in other cities leading up to hosting the Summer Olympics. Accordingly we can provide a forecast for what we can expect in Brisbane’s property market over the next decade.

Impact of Olympics on Property Markets:

When we look at the impact of the Olympics on the property market, we can look to past host cities to see what changes have occurred. For example, in Sydney, house prices increased by 35% in the four years leading up to the 2000 Olympics, and by 60% in the eight years following the games. In Melbourne, house prices increased by 43% in the four years leading up to the 2006 Commonwealth Games, and by 62% in the following eight years. Similarly, in Barcelona, house prices increased by 135% in the eight years leading up to the 1992 Olympics.

Based on this data, we can expect to see a similar trend in Brisbane’s property market leading up to and following the 2032 Olympic Games. While it’s difficult to predict exactly how much prices will increase, we can be certain that there will be a surge in demand for housing in the city, as well as an increase in infrastructure and development projects in preparation for the games.

However, it’s worth noting that the impact of the Olympics on the property market can vary depending on the city and the specific circumstances surrounding the games. For example, some host cities have seen a surge in short-term rentals during the games, which can lead to an oversupply of rental properties and a decrease in rental yields after the games are over. Additionally, the economic and political climate in the lead-up to the games can also impact the property market.

Current State of the Australian Property Market:

Another factor that could impact Brisbane’s property market is the current state of the Australian property market. As I mentioned in my previous blog post, the market is currently experiencing a boom, driven by low-interest rates, high demand, and limited supply. While this presents challenges for buyers, there are still opportunities to find the right property at the right price.

However, it’s important to note that the property market is cyclical, and we can expect a correction at some point in the future. The question is when this will occur, and how significant it will be. Some experts predict that we could see a slight dip in property prices in the short term, followed by a recovery and continued growth in the long term. Others predict a more significant correction, which could impact the property market for several years.

Location of Brisbane Olympic Venues 2032:

Another factor to consider is the location of the games themselves. While Sydney and Melbourne both hosted the Olympics in the city center, Brisbane’s Olympic venues will be spread out across the region, which could impact which areas see the most significant increase in property prices.

According to a report by Domain, areas surrounding the venues, as well as those with easy access to transportation infrastructure, will likely see the most significant growth in property values. For example, the Gabba Stadium, which will host the opening and closing ceremonies as well as the athletics events, is located in Woolloongabba, a suburb that has already seen significant growth in property prices over the past few years. The proposed site for the athletes’ village is in Hamilton, a suburb that has already seen strong demand due to its proximity to the Brisbane CBD.

Infrastructure and Development:

As with any major event, the Olympics will require significant infrastructure and development projects to prepare for the games. This includes improvements to transportation, accommodation, and sporting facilities. These projects can have a significant impact on the property market, both in terms of property prices and rental yields.

For example, in Sydney, the construction of the Olympic Park and associated infrastructure led to a surge in demand for housing in the area. In the lead-up to the games, many investors purchased properties in the area, anticipating a surge in demand for rentals during the games. While this did occur, the oversupply of rental properties after the games led to a decrease in rental yields and a softening of property prices.

Similarly, in Melbourne, the construction of the Docklands precinct, which was built in preparation for the 2006 Commonwealth Games, led to a surge in demand for housing in the area. However, the oversupply of apartments in the area after the games led to a decline in property prices and rental yields.

In Brisbane, we can expect to see similar infrastructure and development projects in the lead-up to the 2032 Olympics. This includes upgrades to transportation infrastructure, the construction of new sporting facilities, and improvements to accommodation options. These projects will likely lead to a surge in demand for housing in the surrounding areas, particularly those with easy access to the Olympic venues.

Summary of Brisbane Olympics 2032 effect on Property Prices

In conclusion, while it’s difficult to predict exactly how the Olympics will impact Brisbane’s property market, we can look to past host cities to make some educated guesses. Based on this data, we can expect to see a surge in demand for housing in the lead-up to and following the games, particularly in areas surrounding the Olympic venues and with easy access to transportation infrastructure.

However, it’s important to consider the current state of the Australian property market, as well as the specific circumstances surrounding the games, such as the location of the venues and the impact of infrastructure and development projects. While the Olympics will undoubtedly have an impact on the property market, it’s important to approach any investment decision with caution and do your research to ensure that you’re making an informed decision.

At Off Market Offer we can help you to buy or sell off market and get the best deal possible. Talk to the team now to make a property transaction ahead of the Brisbane Olympic Games.