The announcement of the Brisbane Olympics Games in 2032 has provided a boost to Brisbane’s already growing property market, which could see residential property prices pushed sky-high in the years leading up to the games.
Brisbane was already one of Australia's highest performing markets before the announcement, so now with the inclusion of the Olympics Games alongside the forecast economic growth, job creation and additional infrastructure spend, has caused Brisbane to be top of mind for many investors nationally and internationally.
Research conducted by KPMG predicts that hosting the 2032 Games will deliver $8.1 billion in benefits to Queensland including specifically a $4.6 billion economic boost to tourism and trade.
A key factor is the impact hosting the Olympics games has had on previous Australian cities in the lead-up. A great case study is the impact of the Sydney 2000 Olympics games on residential price growth.
Although Brisbane has been positively affected by the Olympics announcement, Brisbane has already been experiencing substantial price growth of 15.9% for the year, which is significant when compared to other major cities nationally.
Another aspect that has contributed to Brisbane’s price growth outside of the announcement of the Olympics has been interstate migration. Interstate migration is the amount of people exiting one state to move to another in Australia. This has aided population growth in the Brisbane market to access better levels of affordability or to enjoy a more relaxed lifestyle.
This is clearly shown with Queensland, namely South East Queensland experiencing consistent interstate migration, even during times of uncertainty such as the COVID-19 pandemic. Queensland as a whole has seen consistent quarterly growth of interstate migration. In the December 2020 quarter Queensland netted 9,763 people to the state, and in the March 2021 quarter it saw an additional 7,035 people enter the state to live.
In comparison New South Wales in the March 2021 quarter saw a loss of 4,463 people, and Victoria saw 4,864 people leave to move interstate.
The above indicators are all very advantageous for the Brisbane market in the lead up to the games and based on trends from past host Olympic cities the city is on the right path toward similar results.
Key Takeaways.
It is important to remember, when looking at a residential investment property there are numerous factors that contribute to a market's performance. It remains essential to seek the appropriate qualified professional such as a financial planner, accountant or legal provider before making an investment decision.
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References
[3] Domain Group
[5] Canstar