Brisbane's Golden Opportunity: The Impact of the 2032 Olympic Games on Property Investment
It’s official. The 2032 Summer Olympic Games will take place in Brisbane. This will be the third time an Australian state has hosted the games (Sydney 2000 and Melbourne 1956)!
Although the 2032 Olympics are nearly a decade away, the Australian and Queensland governments already have big plans to enhance the Brisbane area — including spending $4.9 billion on the city’s infrastructure.
The Brisbane area is going to get a major makeover in the coming years. The same is true of the real estate market.
Below, you’ll learn more about how the 2032 Olympic Games will affect the Brisbane property market. You’ll also find out how property investors can prepare for these changes and set themselves up for substantial returns.
How Will the Brisbane Olympic Games Push Up Property Prices?
In many cases throughout history, the cities that host the Olympic Games have experienced positive economic changes, including large boosts to property values.
For example, in Barcelona, where the Games were hosted in 1992, property values increased by 130 per cent in the five years leading up to the Olympics.
London, which hosted the Olympics in 2012, saw more minor but noteworthy growth. Housing prices increased by 26 per cent when people learned it would be the destination for the upcoming event. Prices even rose in less desirable areas, and the increases continued once the Games ended.
What is the reason for these housing price rises?
Olympic Games generally attract more people to the region where the games are being held. Some want to live there long-term, and others are tourists (one study showed that hosting the Games can increase international tourist arrivals in the eight years before, during the event, and 20 years after).
As the population and tourism numbers grow, so does the demand for rental properties and homes for sale. Increased need then drives up prices and profits.
Areas Expected to Benefit Most from the Games
As the 2032 Olympic Games approach, Brisbane is set to undergo significant transformations. While certain areas are expected to see the most dramatic changes, it's important to note that the entire city will benefit from the ripple effect of the Games. Some of the areas to watch include:
- Hamilton: The planned site for an Athlete’s Village that will house the majority of Olympians and participants, and the recent recipient of a $650 million upgrade to Kingsford Smith Drive
- Tennyson: The set location for the 2023 Olympic tennis events
- Chandler: One of the proposed venues for the 2023 swimming events
- Woolloongabba: The home of the soon-to-be renovated Gabba stadium, which is set to receive $1 billion for redevelopment
While these projects are exciting, there’s no doubt in our mind that the entire city of Brisbane will flourish, as the Australian government's investments in infrastructure, transportation, and other projects will ultimately enhance the city's liveability. These improvements will contribute to a more vibrant, connected, and thriving Brisbane, leading to increased property values and a stronger housing market overall.
There’s no doubt about it, with city-wide improvements in infrastructure and liveability, Brisbane is set to become an even more desirable location for both residents and investors alike.
Tips for Potential Property Investors
As a property management agency, we understand the importance of making wise investments in the Brisbane property market.
Whether you're new to property investing or a seasoned pro, these tips can help you make informed decisions and increase your chances of success when renting out or selling your property:
Research the Area
Depending on where you currently reside or how much experience you have in the property investing world, you might not know a lot about the Brisbane area.
The first step to becoming a successful investor here is to research the city. Get to know its neighbourhood, find out which ones are popular, which ones are up-and-coming, which ones are closest to the best schools, etc.
Think of the Long-Term Impacts
When choosing a property, remember to think long-term.
Maybe the house doesn’t look as nice as you’d like or isn’t close to many amenities. That doesn’t mean it can’t still be a good investment.
For example, say a house is near an area where major infrastructure projects are planned. In that case, the value of that house will increase greatly when those projects get closer to completion.
Establish a Budget
How much can you afford to spend on an investment property? Do you have the cash readily available, or will you need to take out a loan?
Be honest with yourself about what you can afford. If you spend too much money on an investment property, you may stretch yourself too thin and struggle to make ends meet, making it harder for you to see returns.
Partner with Professionals
Whether you're looking to buy or are interested in turning one of your existing properties into a rental, always work with professionals, especially in an increasingly popular area like Brisbane. They can guide you through the investing process, help you choose a great property, assist with financing, and more.
And if you plan to rent your property out after purchasing it, you'll have a much better experience and see far greater results by working with a property management company. They can do the heavy lifting for you — such as finding and vetting tenants, enforcing leases, collecting rent, etc. — so you can focus on other aspects of your investment business.
Take Advantage of Brisbane’s Golden Opportunity Today
With the 2032 Olympic Games on the horizon, the already high-performing Brisbane real estate market is expected to grow tremendously in the coming years.
If you're interested in investing but unsure where to start, or if you need assistance managing your property, Aurora Realty Brisbane is here to help.
Contact us today for guidance managing your investment property portfolio and additional advice on your next purchasing opportunity.