The International Olympic Committee has voted for Brisbane to host the XXXV Olympic Games in 2032, set to deliver $8 billion worth of economic and social benefits across the state.
Brisbane will be the third Australian city to host the Olympics after Melbourne (1956) and Sydney (2000).
The video that can be seen below showcases the Brisbane 2032 Master Plan which features events being hosted across greater Brisbane, the Gold Coast, Sunshine Coast, Toowoomba, Townsville, and Cairns.
Research by KPMG predicts that hosting the 2032 Games will deliver $8.1 billion in benefits to Queensland including a $4.6 billion economic boost to tourism & trade, and $3.5 billion in social improvements such as health, volunteering, and community benefits.
The 2032 Games are also expected to support 91,600 full-time jobs in Queensland and 122,900 nationally.
The IOC ‘new norm’ policy means the Games will fit around Queensland, as 84 per cent of venues are already built or will be temporary.
Moreover, some of the current venues, like the Gabba will be refurbished to serve Queenslanders for generations to come while any new infrastructure will have long-lasting community benefits.
The global reach for the Games will be huge – about four times that of the 2018 Gold Coast Commonwealth Games.
So what does this mean for property prices in Brisbane?
According to research carried out by PIPA, The Olympics could very well be the catalyst to drive Queensland property prices up.
PIPA has tracked changes in host cities going back to the 1984 Los Angeles games and found that prices in certain areas rose due to the level of investment that accompanied the Olympics.
In the past, lesser-developed host cities like Barcelona saw a major rise in property prices – with the city recording a mammoth increase of 130% prior to the 1992 Barcelona Olympics. This was due to the fact the city underwent major rejuvenation, such as the implementation of a high-speed train that connected to the capital city of Madrid, and the regeneration of the city’s waterfront precinct.
On the other hand, for more developed cities, it’s harder to attribute property price growth to one singular event.
London for example, which hosted the 2012 Olympics, experienced only a 38 per cent increase in median house prices over the five years ending 2013, despite the $16 billion outlay to prepare the city for hosting the Games.
The bottom line is that it’s going to be good for Brisbane.
The benefits will vary depending on where the property is located and, more importantly, how much new infrastructure goes into the Brisbane Olympic Games.
It’s important to note that the amount of spending allocated to improvements in infrastructure will be the biggest driver to potential property price increases. Over the past 12 months, property prices in South East Queensland have grown at a huge rate.
As the games will be spread across the greater Brisbane area, ranging from the Sunshine Coast to the Gold Coast, transport infrastructure will be a big contributor to potential increases in property prices.
As it stands, there is great connectivity from Brisbane to the Gold Coast via rail or on the highway, however, there is no direct train line connecting Brisbane to the Sunshine Coast. As a result, if improvements to transport infrastructure are put in place to provide greater connectivity from Brisbane to the Sunshine Coast, and connecting the Sunshine Coast to the Gold Coast, the northern parts of Brisbane and the Sunshine Coast will benefit greatly from this improvement, therefore driving property prices further in the area.
The games currently have an initial operating budget of $4.5 billion, which does not account for new road infrastructure and public transport. Therefore, the final costs of the games are still unclear.
With the anticipated investment in infrastructure in the games, there is a strong likelihood that property prices in Brisbane and the Sunshine State, will increase leading up to the Olympics.
There is undoubtedly grounds for great optimism over the next 11 years in the build-up to the games taking Queensland to the next level in terms of attractiveness as an investment destination.