Everyone has surely heard by now – Brisbane is officially the host of the 2032 Olympics! Let’s take a look at whether holding the Olympic Games actually influences host cities’ property prices.
When speaking to investors recently, they are advising, “I’m purchasing this property because the Brisbane Games is approaching” or “Instead of selling my investment property in this heightened market, I’ll hold onto it for another 11-12 years.” But what effects have we seen in the past to support these hopeful forecasters?
Barcelona hosted the Olympic Games in 1992 and saw an increase of 130% in property prices over the 5 years leading up to the event. The city underwent major renovations with the addition of the Alta Velocidad Española, a high speed train line connecting to Madrid. As well as a revitalization of the city’s waterfront district, this no doubt contributed to the price spike.
Sydney hosted the 2000 Olympic Games and saw the property market increase by 88% over a 5 year period. $6.6B was spent on improving infrastructure and transportation. However, the reason for this housing market boom was the great economic prosperity that Australia experienced around this time. During this 5 year period, influences such as tax reform (GST), large property buyer grants, a global technology boom and unprecedented economic development occurred independent of the Games.
London hosted the Olympic Games in 2012 and saw housing prices increase 38% over 5 years. The impact of this boom is significantly lessened by the enormous $16 billion expense of preparing to host.
Brisbane will host the 2032 Olympic Games.
It’s yet to be determined how Brisbane will be impacted by the Olympic Games. “The traditional seven years from announcement to event date has been extended to 11 years, thereby further diluting the investment.” says Simon Pressley, Head of Research at Propertyology.
South-East Queensland already has plenty of existing infrastructure since hosting the 2018 Gold Coast Commonwealth Games. As such, the cost of preparations has reportedly been advised to be lower other cities’ spending, estimated at $4.5billion.
Property owners should not bank on the Olympics to stimulate high growth in the residential market. In reality, refurbishment projects and upgrades to transport and other services and facilities could have a beneficial impact on property prices, not necessarily from the Olympics. Instead, Pressley advises “to focus on the Olympics for what they are: a fantastic display of talent, sportsmanship and national pride”.
This month we dive into how the newly proposed Housing Legislation can affect your power as an investor. Will tenants gain more rights than landlords?
Buying your first investment property today could soon have a different impact for the future than expected. The Queensland Government has recently introduced their Housing Legislation Amendment Bill 2021, awaiting parliament approval. How will this edition of the Bill impact investors? Take a look below:
Predictions suggest that a higher amount of property investors may sell in order to put their money into a more investor controlled environment. This would mean less rental properties available, the same high demand and as a result rent prices will increase.
See further insights and information on the bill here: Rental Law Reform – Housing Legislation Amendment Bill 2021.
Now more than ever, it’s important to have the best advice on investment opportunities and a knowledgeable property manager to guide you through these proposed changes!
Happy New Financial Year! So far, 2021 has been an exciting year for real estate and we have seen unprecedented growth in the Brisbane property market.
Is it safe to say these numbers are expected to be the norm now? Who will be in Brisbane’s Million Dollar Club next year?