Queensland 2032 Olympics & Property Price Rise
Queensland will become the host of the 2032 Olympic games and there is much talk about how this will help boost the local economy and prove GOLD for local property prices. Queensland property prices have experienced a near 16% annual increase in value and it will be hard to imagine how much further prices could rise with the coming of the 2032 Olympic games. One thing is for sure, Queensland will likely level the playing field with infrastructure to support our local towns and communities which will no doubt make it a more desirable place to live.
Although Brisbane is the host city for this event they will be supported by the local councils of both the Sunshine Coast and the Gold Coast with both destinations hosting the Olympians and associated events. Typically host cities have about 7 years to plan and invest for the upcoming event however on this occasion we will have 11 years. What’s more, is that since being the host of the 2018 commonwealth games much of the needed venues to host such sporting events are already available making the Olympic investment much less than usual.
One case study provided by the REIQ highlighted that although the Olympic games do stimulate property prices it is hard to determine if the Olympics is the sole event causing such prices hikes. They found that the 2012 London Olympics noticed a property price increase of 33% in the 5 years ending 2013. In Sydney they noted that in the 5 years ending 2001 prices rose 88% however, this was also marked as one of Australia’s most prosperous eras.
If property cycle trends continue as they have for the past 100 years the 2032 Olympics may be perfectly timed for the next property cycle boom. On average around Australia, property prices have doubled every 10 years or so. With a broad consensus that in the next 12 to 18 months we will see a slump in the property markets and then an expected 10 years of a steady ride with nothing much happening. And as evident in previous cycles a boom occurs before a bust and then a long slump period.
We can already see major works happening on our main highways north to the sunny coast and south to the GC and this is likely to continue. The Olympic games are predicted to create an additional 130,000 jobs for locals which will further boost local economies. And while South East Queensland is already on the radar for many people currently living interstate, the welcoming of the 2032 Olympic games will be sure to put Brisbane and South-East Queensland further on the map.