CoreLogic’s Research Director, Tim Lawless, sees upside for Brisbane property values arising from its successful bid to host the Olympics in 2032:
The Olympics should work as a positive influence on Brisbane housing market conditions, however, with the Games still some eleven years away, the flow on effects are likely to be gradual and centred around significant infrastructure upgrades and the associated medium-term uplift in jobs and longer-term improvements in transport efficiency.
The most significant positive influence on the housing market is likely to be seen in the years leading up to the Olympics, rather than during the four weeks of the Olympic and Paralympic games themselves.
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Large infrastructure projects tend to have a positive influence on housing prices, with the extra requirement for workers creating additional demand for housing during the construction process.
Large projects also tend to leave a legacy of a permanent housing demand uplift, either through additional employment or via other benefits such as improved transport options and travel efficiencies related to transport infrastructure projects as well as additional amenity introduced to the area including social and retail outlets.
As more detail comes to light about where these projects will be located we should get a better understanding of the housing market opportunities, however the obvious candidate for an uplift in demand is Woolloongabba and the surrounding suburbs.
The proposed billion-dollar overhaul of the Gabba stadium is set to be the epicentre of Olympic activity. Along with the Cross River Rail terminal and plaza, this precinct is likely to see a lift in desirability. The area is already popular with investors, with around two thirds of the housing stock in and around Woolloongabba being rented. The proximity of the Princess Alexandra Hospital and Mater Hospital provide a permanent level of localised housing demand, along with easy access to the Brisbane CBD, local universities and Southbank precincts.
Currently, Woolloongabba unit prices are at the lower end of the inner south unit markets with a median unit value of $458,000; about $94,000 lower than Kangaroo Point’s median unit value, $85,500 lower than West End and $38,000 lower relative to South Brisbane. The lower price point combined with upcoming capital investment on infrastructure are likely to be a popular combination with investors and developers alike.
Other areas set to benefit would be the proposed sites for athlete villages, earmarked for Hamilton and Robina, along with areas set to benefit from transport infrastructure upgrades including the Gold Coast and Sunshine Coast via upgrades to the M1 Pacific Motorway and Bruce Highway which could be accelerated.
The Olympics should also cement Brisbane as a ‘global city’ no longer in the shadow of Sydney and Melbourne.
Brisbane dwelling values are already exceptional value in a relative sense (i.e. compared to Sydney and Melbourne), as illustrated clearly below:
I expect Brisbane dwelling values to converge somewhat with its bigger East-Coast cousins over the next decade.