A Brisbane Olympics property boom? What experts predict for home prices
- Posted By Sam May
The Olympic build-up towards Brisbane 2032 is tipped to be good for property owners and investors, and the party could continue long after the Games, research suggests.
An analysis by property investment group Benchmark Capital of real estate values before and after previous Olympic Games, including Sydney 2000 and London 2012, has pointed to strong growth for Brisbane before and after the Games.
This is expected despite Brisbane already recording the nation’s strongest growth in home values over the past five years, up 92 per cent to a median $936,000, according to REA Group’s PropTrack data.
Benchmark’s analysis found there was an 88 per cent growth in property prices in Sydney between 1996 and 2001, while since the 2000 Olympics the suburb of Newington – next to Olympic Park – has delivered median house price growth of 250 per cent, similar to the overall rise in Sydney home prices of 253 per cent over that 25-year period.
Benchmark forecasts Brisbane house and unit prices could rise by at least 70 per cent by 2032, and says prices in regional Queensland – where many Games events will be held – could increase strongly too.
It examined recent overseas Olympics and found that prices in some London suburbs had more than doubled since that city’s 2012 Games, and since last year’s 2024 Paris Olympics home prices in areas surrounding Olympic transport hubs already had climbed by up to 30 per cent.
Separate statistics show Rio de Janeiro property prices trebled in the seven years leading up to its 2016 Olympics, then stagnated for a few years before bouncing again – up more than 50 per cent – since 2020. Tokyo’s price moves were muddied by the pandemic, but since its 2020 Olympics, which were held in 2021, property prices have climbed between 35 and 45 per cent.
Benchmark Capital chief executive Fawaz Sankari said the Olympics were not a short-term “sugar hit”, but instead heralded a “multi-year growth cycle supported by structural investment and lifestyle migration trends”.
“While not every suburb will boom, areas connected to Olympic infrastructure, transport upgrades and urban renewal zones are likely to outperform,” he said.
“You can expect Brisbane to outperform both the national average and several other capitals over the next decade.”
Benchmark is expanding into Brisbane to capitalise on the structural growth opportunities it expects there.
REA Group senior economist Anne Flaherty said she expected the Olympics to have a positive impact on Brisbane property prices, despite their recent strong run.
“The most obvious reason is that the Olympics is going to uplift Brisbane, there’s going to be "a lot of spending that improves the infrastructure and appearance of Brisbane,” she said.
Secondly, it increases the profile of Brisbane, not just across Australia but also internationally.
Another side-effect of the Olympics is that with of all the spending happening and infrastructure going into building stadiums and whatnot, that’s actually going to potentially make the labour shortages that we are seeing worse for the housing market.
“You are going to get more workers working on projects related to the Olympics, which will leave fewer for the home construction industry, and it’s very likely to increase wages in the construction industry as well.”
Ms Flaherty said Queensland had experienced severe shortfalls in new housing supply relative to population growth.
“I think the Olympics could intensify this issue,” she said, adding that there is room for prices to grow further.
“If we compare Brisbane to Sydney, the median price for a home in Brisbane still has a long way to go before it gets to Sydney levels,” Ms Flaherty said.
“Unfortunately, affordability has been deteriorating for a long time now … in Brisbane there aren’t enough homes being built and population growth is still very strong. Now that interest rates are moving downwards, that’s another factor that would support price growth.”
Beyond Bank chief customer officer Nick May said rising home prices in several cities in recent years had built up significant equity for homeowners and investors.
“This means they’re now perfectly positioned to unlock that equity and invest in property to grow their wealth,” he said.
“Brisbane boasts Australia’s fastest-growing property market over recent years, so from now through to the Olympics presents an excellent investment opportunity made even better by a hot rental market, which makes it easy to secure good tenants.”
Ms Flaherty sees the potential for strong growth after the Olympics amid a boost in jobs and interstate migration, but says investors should do their research because trends for the entire city might not apply to individual suburbs.
Mr Sankari said investors should target future growth corridors near Olympic venues and transport links, partner with professionals, and think beyond 2032 by considering areas benefiting from infrastructure and lifestyle improvements.
“This is not just a sporting event – it’s a nation-building moment, and smart investors will treat it as such,” he said.
Source: The Australian. Written by Anthony Keane