Brisbane's successful bid to host the 2032 Olympics is sure to have a huge impact on the local real estate market, with one economist predicting the median home price to triple to $ 1.7 million.
The current median home price is $ 674,738.
While the Olympics are still 11 years away, past international events the city has hosted could provide a glimpse of what could happen with house prices.
International Events and Prize Gains in Brisbane
Brisbane is no stranger to hosting the world's biggest events. Two key events that have taken place in the city in the past were the 1988 World's Fair and the 2014 G20 Summit.
An analysis by PRD Research has shown price spikes in the 11 years leading up to and the year following these two events.
For example, the median price in Brisbane had increased by 278.8% in the run-up to Expo 1988. Home prices in South Bank and its surrounding suburbs more than tripled at the same time.
In the year after Expo 1988, house prices rose a further 29.7% in Brisbane and 19.1% in South Bank and surrounding suburbs.
A similar trend manifested itself when the city hosted the G20 summit in Brisbane in 2014.
In the decade leading up to the event, real estate prices jumped 112% in Brisbane and 116% in South Bank and surrounding suburbs.
"It is clear from the main findings above that the organization of Expo 1988 and the G20 Summit served Brisbane's real estate market well," said the Chief Economist of PRD Research, Dr Diaswati Mardiasmo.
"This is both short term one year after the event and long term throughout the 12 years of preparation, hospitality and hospitality" post-event. "
Given these two events, Dr Mardiasmo predicts that Brisbane real estate prices could reach $ 1.7 million by 2033, one year after the Olympics.
"Having said that, the data shows that the growth in property prices is moving at different speeds. Due to this difference, it is possible that the median property price in Brisbane will not rise. not move that far, ”Dr. Mardiasmo said.
Dr Mardiasm noted that there were differences in the pace of real estate growth in past events, but even going at "half the strength", the median price of real estate homes would still reach $ 1.2 million by 2033.
What happened after the Sydney 2020 Olympics?
Historical housing price data during the Sydney Olympics in 2020 can also provide insight into how prices might behave in Brisbane.
The median price of homes in Newington and surrounding suburbs increased an average of 13.4% in the year following the Olympics. Three years after the Olympics, prices in Newington have increased 66.4%.
"Keeping in mind that the 2032 Olympics are still 11 years away and based on how the Brisbane market is moving, the potential to eclipse this price is high" , said Dr Mardiasmo,
"Regardless of how you calculate it, the conclusion tells us that Brisbane will sooner rather than later become a city with median real estate prices at $ 1 million. "
What opportunities will the 2032 Olympics open to buyers?
Dr Mardiasmo said local buyers still have an advantage today as demand from international buyers is limited due to the pandemic.
"A key question is whether the 2032 Olympics will make Brisbane, from a purchasing power perspective, as unaffordable as Sydney," she said.
“But the Games are 11 years away – it gives the world time to reopen, economies are picking up – and we are already seeing record property sales. "
Dr Mardiasmo said it was interesting to see how the Athletes Village – expected to rise in the Northshore Hamilton Priority Development Zone – will be reallocated after the Olympics.
"In total, this new supply of land is expected to catalyze $ 500 million in private investment and create 1,600 construction jobs," she said.
However, she noted that it was important for the government to work together to create critical infrastructure and increase the supply of land to keep housing affordable, given the potential demand for the Olympics. will attract.
"We know we're 11. So no matter where or whatever your real estate journey, now is the time to weigh your options and formulate a strategy," said Dr Mardiasmo.
