PHOTO: John McGrath
Sydney had a major property boom after its Olympics but a lot of other factors contributed to that according to John McGrath founder and executive director of McGrath Estate Agents.
The 2032 Brisbane Olympics might still be 11 years away, but the impact on the property market will be seen much sooner. It will start in about 2025 when a vast range of infrastructure projects will be underway to get the city ready for the big event.
A unique aspect to these Olympics is that they won’t be held in one city alone. Rather, Olympic events and will be held in three Games zones – Brisbane, the Gold Coast and the Sunshine Coast, as well as regional areas including Toowoomba, Townsville and Cairns.
This is fantastic because it means the economic benefits will be spread across many communities (and many local property markets!)
It means scores of suburbs are going to benefit from new infrastructure, new jobs, better public transport services, new sporting facilities and local road and streetscape upgrades.
It’s hard to quantify the direct effect of an Olympics on home values. Sydney had a major property boom after its Olympics but a lot of other factors contributed to that, including a strong economy, a decade of falling interest rates, the new 50% capital gains tax discount and the first ever First Home Owners’ Grant.
However, I can see a number of ways in which this next Olympics will benefit property.
1. A significant long term economic boost
The Queensland Government is aiming to create a 20-year economic boost from the Olympics. There is a plan to distribute the economic benefits over the 10 years prior to the games (2022-2032) and the 10 years after in the ‘legacy’ period (2032-2042).
KPMG research commissioned by the Queensland Government predicts the games will deliver $8.1 billion in economic benefits. When an economy does well, there are flow-on effects to property. The simple equation is, higher incomes equal people upgrading homes.
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