Is Queensland the big 2021 Olympic winners?
Australia’s 1st Olympic win in 2021 was not during the actual games in Tokyo, but two days before the opening ceremony even took place, when on the 21 of July 2021, the world learned that Brisbane would host the 2032 Olympic Games.
In the remainder of this blog we will share how other people have predicted this will impact the local economy.
It makes sense that, as a property investor, an initial reaction to such an announcement would be to consider the potential positive impact this might have on local property prices.
And indeed, in the Financial Review on the 22 July 2021, we saw the following headline.
Here Nila Sweeny and Nick Lenaghan presented an opening sentence which grabbed our attention.
“Brisbane house prices could more than double by the time the 2032 Olympic Games roll around, taking median home values above $1.4 million, an economist predicts.”
This article then moves on to share opinions from some very respected people that support this statement, including:
- Diaswati Mardiasmo – PRD chief economist, who identifies the G20 2014 summit as the closest we have with the Olympics, to understand how house prices could perform.
- Tim Lawless – Corelogic, who reports how the 2000 Sydney Olympics impacted property prices in Sydney at the time.
- Louis Christopher – SQM Research Managing Director who shares his opinion on what developers will do
In the article Don O’Rorke – Highly experienced and respected Queensland developer, is quoted as saying:
“There are a lot of tangible things that will come from it; stadiums, roads, hotel stock, all manner of infrastructure needs to be built over the next 10 years,” he said.
“But I’m most excited about the intangible benefit of becoming an Olympics city. It’s very hard to measure, but the confidence that brings with it, in terms of people making decisions to allocate capital to Queensland, to move to the state, to buy second residences or to base their companies in Queensland.”
If you would like to read in more detail this article and the opinion presented you can do so here.
Not long after the announcement the Real Estate Institute of Queensland (REIQ) published an article with the below headline.
This article, by Aislinn Dwyer, shares some fantastic insights by Simon Pressley, Head of Research at Propertyology.
It touches on how past Olympics have impacted the property prices, however, importantly it then moves on to point out that Brisbane will be vastly different for the following reasons.
- Previous Olympics have been hosted by 1 city. The 2032 Olympics will see sporting venues on the Gold Coast and Sunshine Coast will being utilised – plus venues in Redland, Moreton Bay, Scenic Rim and Ipswich. Preliminary football matches are planned for Cairns, Townsville, Toowoomba, Sydney and Melbourne.
- “The traditional seven years from announcement to event date has been extended to 11 years, thereby further diluting the investment.”
This well written, and easy to understand article points out that the direct benefit on property prices will be from the investment in infrastructure, and probably provides the best advice I have seen to date…
“The best advice that I can give anyone who truly cares is to just enjoy the Games for what they are, and ignore the property market gum-flappers.”
by Simon Pressley
We would like to take this opportunity to thank Mr Simon Pressley, and Aislinn Dwyer for sharing what we believe to be a very easy to follow common sense opinion.
You can read the entire article here.
These are all solid insights, backed by fantastic and well researched reasoning by people who are far more qualified and knowledgeable than me in the area of property in Brisbane.
The only thing that I can share is that as I saw the new decade in on Jan 1 2020. I wrote my New Year’s resolution which included attending a friend’s wedding in Southern France in just over 12 weeks’ time. I never made it to France. I think we have all learnt in recent times that a lot can change in a short period of time, and 11 years is a fair way down the track.
However, if you’re considering getting your leg over what might be the Brisbane property market boom, or indeed any other housing market, Fix Bad Credit are happy to refer you to whom we think are the best brokers in the business.
Get in touch for more information.