Research by KPMG also predicts that hosting the 2032 Games will inject $8.1 billion in benefits to Queensland. This funding will include a $4.6 billion economic boost to tourism and trade and $3.5 billion in social improvements such as health, volunteering and community improvements. It is expected that the event will also support 91,600 full-time jobs in Queensland and 122,900 nationally. All these factors will have a positive impact on the residential housing market.
Plans are in full swing with the new Brisbane 2032 Master Plan , featuring the event locations and temporary facilities. The proposed transport infrastructure link from Brisbane to the Gold and Sunshine Coasts will benefit tourism and the local community long after the games are over.
Brisbane is showing a number of positive market indicators with analysts tipping a 10+ year boom ahead.
After a number of years in relatively plateaued price growth, in the last 12 months we are seeing a strong upwards trend. According to Corelogic, dwelling values over the past year rose by 15.9%, and increased by 2% in July. Westpac has forecasted Brisbane dwelling prices to grow by 26% in 2021-2022.
Sales volumes have risen by 44% in the last financial year, according to Corelogic. Compared to the same period of last year to June 2021, new listing volume was 24% higher while total listings remained 25.9% lower. This means the market is absorbing the stock rapidly and both these trends indicate a heating market.
We saw in the years between 2016 and 2020 that dwelling approvals had fallen significantly. This has now had a strong bounce with dwelling approvals rising by 36.7% in 2020-21 compared to 2019-20 across the state.
Typically, in a balanced market, there is a vacancy rate of approximately 3%. However, across the capital, we have seen a decline in vacancy rates. In July 2021, the Brisbane vacancy rate sat at 1.3% (SQM Research). This has tightened significantly over recent years, illustrating Brisbane’s continued population growth, and is expected to lead to rental growth, and capital growth as more tenants look to enter the market as owner occupiers.
Ironfish Head of Property, William Mitchell, says, ‘Our property team has been closely monitoring the evolving situation in Queensland. The Brisbane and Gold Coast property markets are already proving to be strong performers, and this growth is not expected to slow anytime soon.’
The most important question investors are asking is now the right time to invest? Based on the current market indicators, there is little doubt that Brisbane is a growth market with real potential for savvy investors.
Tim Lawless suggests 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.
In the past 12 months we have seen a desire from interstate residents for a sea change moving to the warmer climates. This coupled with the current interest and investment in the regions, waiting to get into the Brisbane market will come at a cost – to the investor.
When asked if Brisbane could enjoy an even longer Olympics-induced bounce, SQM Research Managing Director Louis Christopher said, ‘Regardless of the Olympics, Brisbane is likely to outperform the market as it’s due for a surge after years of sluggish growth,’ he added, ‘So the probability is that outperformance could go on for longer than one or two years post-Games.’
Investors who take the opportunity to capitalise on the northern regions with a view to holding can expect to have more than sporting wins to celebrate in 2032.