Sydney & Brisbane: Olympics legacy a boon for investors

Those who have been following Brisbane’s growth and development will know that Brisbane has long since shed its old image of a ‘big country town.’

Brisbane is growing, and as an Olympic host, we will see Brisbane established as a genuine global city. This is not just a win for Brisbane, either. The South East Queensland region (Brisbane, Gold Coast and Sunshine Coast) will be the centre of Olympic activities, investment and global attention.

In the last two decades the government has been investing heavily in developing Brisbane infrastructure. Unlike Sydney, where the population growth came first, and the infrastructure plays catch-up, Brisbane has been planned strategically over the last two decades, with even more infrastructure and development fast-tracked to meet the 2032 deadline.

As Daniel Gschwind, of Queensland Tourism Industry Council said recently, “We are not building something for a three-week sports party, but building a new city.”

Brisbane Airport recently opened its 2^nd Runway; a 24-hour hour gateway into the city, which will enable overseas tourists to fly directly into Brisbane, bypassing Sydney or Melbourne altogether. There is the new Queen’s Wharf Casino, which is not just a casino, but a destination precinct that includes many fine dining restaurants and 5-6 star hotels.

The Queensland Government claims the Olympics will generate $20.2 billion in international visitor expenditure from now until 2036, along with increased export opportunities of up to $8.6 billion.

The tourism industry is understandably excited; “An Olympic city is the ultimate marketing coup,” Accor Hotels Australia Chief Executive told AFR this month. “You can’t buy better publicity. When you think how well Australia is positioned to exit the pandemic in terms of being seen by the world as a large, safe island that’s relatively COVID-free by the time the 2032 Olympics rolls around, we’ll be set to capitalise on global travel hunger.”

While international appeal will grow, with its sub-tropical climate, relaxed lifestyle and affordability; in recent years, Brisbane and South East Queensland have seen many Sydney and Melbourne residents migrate north in recent years, as property prices became too expensive in the biggest capital cities.

Sydney and Melbourne property markets tend to run in parallel, with Brisbane usually next to follow. While Sydney and Melbourne markets were in full swing, Brisbane’s market remained flat for a number of years, but now the Brisbane market is moving. Brisbane’s turn is next, and we are already seeing this, with Westpac predicting 26% price growth for Brisbane housing between 2021-22.

With today’s supply and demand coupled with the 2032 Olympics, I can only think that capital growth will be strong over the next 10 years and beyond.

We are very excited for Ironfish investors, as we have placed many into some of the most desirable locations (and many award-winning developments) in Brisbane and the Gold Coast, at a fraction of typical east coast capital city prices.

I, myself, have a very substantial portfolio in Brisbane and South East Queensland, so I’m also very excited from a personal perspective as well!

While our investors who got in early will benefit the most from the predicted growth of the next 10+ years, there is still great potential for the Brisbane market for new investors.

If you need some help exploring options or understanding how to invest in Brisbane’s best locations, please reach out to your local Ironfish strategist. We are specialists in this market and are all looking forward with excitement to see how this market develops to 2032.

Go Brisbane!