The IOC has announced that Brisbane will host the 2032 Olympic games from 23 July to 8 August 2032. This is the third time the Games will happen in Australia, the last two times were in 1956 in Melbourne and in 2000 in Sydney.
This article will analyse the impact of the Olympic Games on the property market based on two perspectives:
The financial impact on the overall market and the regions where new infrastructure projects will be built
Analyse what had happened in Sydney before and after the Sydney Olympic Games in 2020
The plan for Brisbane 2032 is to spread the sporting events across the wider region, including Brisbane, Sunshine Coast and Gold Coast. Most of the existing facilities will be utilised or upgraded, as well as the facilities that are already in the pipeline will be used for the Games.
The list of major projects which are prioritised for the 2032 Olympics:
SEQ Fast Rail Project
Cross River Rail Project
Coomera Connector
Centenary Bridge Duplication
Australian NBN Upgrades
Water Infrastructure Upgrades
Roads and Footpaths Funding
The list of new and upgraded venues will see a major boost to many of the South Easts’ large sporting facilities, including:
A new Olympic Stadium at Albion Park
A new Brisbane Indoor Sports Centre
A new Chandler Indoor Sports Centre
A new Whitewater Centre at Redlands
A new Flatwater Centre at Larapinta
Upgrades to Ipswich Stadium
Upgrades to Brisbane Aquatic Centre
Upgrades to Brisbane Entertainment Centre
Upgrades to Queensland Sport and Athletics Centre
Redevelopment for the Sunshine Coast Stadium
The Cost
The Queensland government estimated that it would cost between $5 billion to $10 billion to host the Games.
To put that in perspective, the last Games in Korea, China and London costed significantly more:
The 2014 Sochi Winter Olympics: $55 billion
The 2008 Beijing Summer Olympics: $40 billion
The 2012 London Summer Olympics $14.6 billion
The Sydney 2000 Olympics: $4.2 billion
The Benefits
A study by the University of Queensland predicts revenue of $4.6 billion from the 16-day event will be generated from the surge of visitors
The long-term effects will be based on the attractiveness of Brisbane as a great place to live and work. This translates to the development of the tourism and housing sectors
It is estimated that 91,600 full time jobs will be created between 2022 and 2032 as a result of hosting the Olympics.
The Sydney Experience
The experience of the Sydney property market due to the impact of the 2000 Olympic Games can shed light on the possibility of the Brisbane market. Prices were growing steadily during the period leading up to the Games in 2000, then continued to accelerate for another three years after the Games. In total, Sydney’s detached house price almost doubled in the period of 6 years, from 1997 to 2003. However, the market entered a prolonged stagnant period for the next 10 years.
We found that the growth of short-term visitors to Sydney did not change significantly in the long-term, despite there being a surge during the Games, then dropping rapidly in the next few years.
Population growth increased steadily during the period before the Games, then it dropped significantly during the 5 year period after the Games. The underlying reason could be that the property prices in Sydney became too expensive at the time, which made the city unaffordable for many people.
Strategy to reap the rewards from the 2032 Brisbane Games
We project that the Brisbane market will ramp up 5 years before the Games, and will continue at an above average growth rate for another 3 years after the Games
The growth areas will be likely where big money is spent. The list of suburbs that will receive infrastructure boost is in the diagrams
Currently, Brisbane is the fourth most expensive property market after Sydney, Melbourne and Canberra. Given the population size and the scale of the city, it has a high probability to accelerate and catch up with Sydney and Melbourne between now and the time of the Games commencing in 2032.
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