This article is from the Australian Property Journal archive
BRISBANE securing the 2032 Olympic Games will deliver gold for the residential property market, pushing the median house price in the city above the $1 million threshold.
PRD Real Estate looked the previous impact on similar international events on their host cities, with conservative estimates arriving at a median house price of $918,540 for year following the Olympics.
The Brisbane LGA median house prices crossed the $800,000 line for the first time ever as of 30 June 2021, at $810,000, which will no doubt increase regardless of the upcoming games in 11 years’ time.
Looking at the impact of the 2000 Sydney Olympics on the NSW capital’s median prices for comparison, median house prices grew by 13.4% in the year following the games, continuing to grow by 38.5% two years following and 66.4% three years following.
PRD also looked at the impact of two major international events on Brisbane itself, with both the 1988 World Expo and the G20 summit in 2014 which also led to significant upticks in prices.
In the year following the World Expo, Brisbane LGA median house prices grew by 29.7%, with the year following the G20 seeing a 6% increase.
If taking the 12 years between 2003 and the 2015, the year following the G20 summit, house prices increased by 112.7%, this applied to the current median price would see 2033 reach $1.7 million.
Even if this increase is applied at “half strength” or 56%, accounting for other factors impacting the market, median prices would still reach $1.2 million by the year after the Olympics.
The more conservative estimate of $918,540 is following the average increase seen in 2001 following the Sydney Olympics.
Further, specific suburbs where Olympic events are held, athletes are housed and where new related infrastructure is built will see even greater growth, not just in Brisbane but in the Gold Coast and the Sunshine Coast.
