2032 Olympics will Turbocharge Brisbane Dwelling Values

By 2032, Brisb

ane will also be recognised as a global city

David Moore

Australia has two global cities – Sydney and Melbourne. But by 2032, Brisbane will also be recognised as a global city. This status will be driven by population growth, infrastructure investment and recognition of Brisbane as a destination.

A global city is defined as a city that is a primary node in the global economic network. Social researcher and futurist Mark McCrindle noted Queensland has long been recognised as the place where Australians go for fun and holidays, as well as to retire, “but by 2032 it will be recognised as a corporate powerhouse as well, and to some extent, that is already happening”.

South-East Queensland’s climate and natural beauty have always been a winning combination. However, its popularity as a place to live has grown since the onset of Covid-19 due to Queensland’s safety record and as people prioritise lifestyle. The shift towards working from home has made office workers more mobile, and the surge in infrastructure and building means an abundance of work for tradies wanting a better life.

Queensland is already growing
Queensland captures over 80% of interstate migration in Australia, with the vast majority coming from the more crowded and expensive global cities – Sydney and Melbourne. This flow of people grows Queensland’s population by approximately 750 people per week – as high as it has been since 2003 – and the growth rate is accelerating. About half of Queensland’s interstate migration settles in greater Brisbane. Queensland’s population of 5.2 million, which accounts for 20% of Australia’s population, is expected to grow by 25% to 6.5 million by the time the Olympics are staged. Based on current trends, by 2032, there could be more Queenslanders than Victorians, which currently account for 26% of Australia’s population.

Confirmation that Brisbane will host the 2032 Olympics will turbocharge infrastructure investment in the region. As highlighted previously, Brisbane is already enjoying transformational infrastructure investment, with the infrastructure pipeline in Brisbane and the broader area exceeding $70 billion. Preparation for the 2032 Olympics will see the program of significant works expand and accelerate, with synchronised investment by the Federal, State and Local governments. The $1 billion rebuild of the Gabba is just the start. It’s interesting to note that most of the Olympic events, including the opening and closing ceremonies, will occur within a 3km radius of the Brisbane CBD. This will create a fantastic atmosphere for athletes and spectators, but it also tells us where the money will be spent.

Brisbane expected to attract more tourists
While the beautiful Sunshine Coast to the north and Gold Coast to the south has historically been a mecca for domestic and foreign tourists, Brisbane has not. This is starting to change, and the 2032 Olympics will announce Brisbane as a global destination. The $3.6 billion Queen’s Wharf development – to be completed next year – will put Brisbane on the map as a tourism, leisure, and entertainment destination. Covering more than 26 hectares across land and water, it’s expected to attract 1.39 million additional tourists each year and establish itself as a place that locals will embrace. Also in the CBD will be the $2.0 billion Brisbane Live, an 18,000 seat entertainment arena complex serviced by underground rail and busway infrastructure.

Prominent Queensland developer Don O’Rorke said the intangible boost of becoming an Olympics host was even more significant than the tangible benefits of infrastructure development. “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 ten years,” he said. “But I’m most excited about the intangible benefit of becoming an Olympics city. It’s tough 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”.

Olympic impact on property prices
When considering the impact of the Olympics on dwelling values, Sydney is a reasonable frame of reference. According to CoreLogic figures, when the Sydney Olympics were announced in September 1993 and held in September 2000, Sydney dwelling values jumped by 60 per cent, almost twice the growth recorded across the broader combined capital cities, which grew by 34.6 per cent.

According to CoreLogic’s Research Director Tim Lawless, “The Olympics and associated capital works were likely to be a key contributor to the higher rate of growth in the lead-up to the Olympics. The trend in Brisbane could be similar, in the sense that Brisbane has a good chance of outperforming the larger capital cities. Still, it’s hard to attribute that entirely to the Olympics and associated capital works. Brisbane is remarkably more affordable than the larger capitals and is already attracting the highest rate of interstate migration since late 2003.”

Louis Christopher, SQM Research managing director, said Brisbane could enjoy an even longer Olympics-induced bounce. “Regardless of the Olympics, Brisbane is likely to outperform the market as it’s due for a surge after years of sluggish growth,” he said. “So the probability is that outperformance could go on for longer than one or two years post-Games”.

PRD chief economist Diaswati Mardiasmo believes Brisbane home prices could more than double when the 2032 Olympics roll around, taking median home values above $1.4 million.

Now is the time
Whatever the size of the move or length of the upswing, Brisbane property prices are likely to go a lot higher in this cycle. Investors could not ask for a better setup. Get in touch to discuss how you can best take advantage.