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  • Writer's pictureAlison Wong

Australia's Property Buying Guide: Buying Property in Brisbane

Updated: Apr 11


On July 21 2021, Brisbane, Australia, won the right to host the 2032 Olympic Games, becoming the third Australian city to do so (the 1956 Olympics were held in Melbourne, whilst the 2000 Olympics were held in Sydney). For a time, the call to buy a house in Brisbane was high.


Brisbane house prices soared 33% in just one year. Did you know that the original median property price in Brisbane, Australia, was only a little more than 500,000 Australian dollars? At the high point of this round of soaring house prices, the median property price in parts of Brisbane actually exceeded 1 million Australian dollars!


So what impact will the Olympics economy have on Brisbane's housing market? If you buy a property in Brisbane now, can you still catch this bonus period?


Will investors make more money buying a property in Brisbane?

After Brisbane won the right to host the Olympic Games, Australian property investment experts said “by the time the 2032 Olympic Games are held, property prices in Brisbane will double, and a large number of buyers are eager to move! In the future, the median property price will rise from A$516,000 to A$1.24 million.”


But whether the Olympics have such magical powers, no one can be completely sure. But what is certain is that the next 10 years will be the golden decade of buying property in Brisbane.


The Olympics often have an impact on a city's housing prices

1. The Olympic Games usually attract a large number of tourists and media to watch and report. If the timing and location is very attractive, such as during high season and near attractions, then this can lead to higher house prices.

2. In preparation for the Olympic Games, host cities usually invest a lot of money in infrastructure and urban renewal (such as transportation, sports facilities and public services). These investments are likely to increase the attractiveness and quality of living in said cities, which will drive up housing prices. Brisbane has already started a series of infrastructure projects, and the number of people buying property is also expanding.

3. During the Olympic Games, a large number of tourists and Olympic participants need to find accommodation, and hotel rooms may quickly become fully booked. This could lead to an increase in demand for short-term rental housing in the market, pushing up rent. Brisbane is currently in short supply, new housing starts have been affected by the pandemic far less than expected, and buyers are fiercely competitive.


4. The hosting of the Olympic Games may stimulate housing market participant’s expectations for the future development of the host city, which will prompt them to make long-term investments in the city. This could make Brisbane attractive to more buyers and investors, pushing up house prices. At present, we can already see very positive signals, the most significant of which is the increase in population and employment opportunities.

The Australian government expects Brisbane's plan to host the Olympics to add 130,000 jobs and bring $7.4 billion in revenue.


In the final analysis, international sports activities alone have never been the cause of long-term rise in the property market. The root cause is the huge infrastructure brought about by the hosting of the Olympics and the plan to improve transportation, which is the meat that really makes the property market grow.



Where will the biggest infrastructure of the Brisbane Olympics occur?

Since the importance of infrastructure is mentioned, we have to analyze ‘future Brisbane’ when it comes to buying a house - which places will have the largest infrastructure relevant to the Olympic Games?


When talking about this part, we need to divide the property market into environmental infrastructure and site infrastructure to analyze.


1. Site infrastructure

85% of Brisbane's Olympic venues will use the city’s original sports facilities, which means there will be no significant investment in venue infrastructure. On the contrary, more attention will be paid to improving the transportation system.

In terms of site infrastructure, the most notable is the Gabba, located near Brisbane’s city centre. The Queensland Government has announced it will spend more than $1 billion to refurbish the Gabba Cricket Stadium into a 50,000-seat Olympic main venue for the opening and closing ceremonies. There's also Roma Street's new world-class swimming arena, a massive 15,000-seat water sports centre.


2. Environmental infrastructure

At present, the Brisbane government has decided to place the Olympic Village in the Hamilton area and will build new premium riverview accommodation for the world’s athletes. Other smaller hostels will also be built on the Gold Coast, Sunshine Coast and Kooralbyn.


Whether it's Brisbane, the Gold Coast or the Sunshine Coast, hundreds of millions of dollars will be spent to improve environmental infrastructure. The government also plans to spend $5.4 billion on a rail link to the Cross River Rail, which is expected to be completed by 2024.


In addition, Brisbane Airport is about to be expanded, with the government planning to spend $1.35 billion on an additional runway, which will see 49 million passengers per year and contribute an estimated additional 50% per year to the economy (around A$100 million).


Thirdly, compare with other cities that have hosted the Olympic Games

Looking back at the Sydney Olympics in 2000, the property market in Sydney rose by 88% in five years. Don't think that it was just the Olympics that made the property market in Sydney explode at that time. In fact, the city was meeting with tax reform at that time. The government had vigorously promoted housing purchase subsidies, including first home grants, which have fueled the property market for a while.

At the same time, even Melbourne's property market, which did not host the 2000 Olympics, rose by 95%.


In countries other than Australia, the economic impact of the Australian dollar cannot be underestimated.


During the London 2012 Olympics, London spent $16 billion to host the Games. In the end, it not only earned back the investment, but also saw a long-term increase in the property market, which has continued to this day.

Today, 11 years later, looking back at the real estate near the London Olympic venue, it is up 78%. Compared to the rest of London, it is generally only up 61%.


It can be seen that places close to the Olympic site perform better than places that are not close. It is conceivable that investment in carefully selected places near Olympic venues and facilities can expect to have a huge return in the long run.



Where should I buy property in Brisbane?

How should you choose an area to buy a property in Brisbane at present? I have three tips for everyone:

1. Olympic venue area

For example, near the Gabba, which will see $1 billion invested for refurbishment.

2. Near the Olympic Village

Hamilton in Brisbane and/or Robina on the Gold Coast are also good choices.

3. Where the transportation system has been improved

One of my favorite places is Roma Street. The planned arena will be developed into a central transport hub - keep an eye out for MRT stations and beneficiary areas along the Cross River railway station, as well as the Gold Coast's Phase 4 LRT extension to Gold Coast Airport (where Burleigh Heads will be reached via light rail lines like those at Palm Beach are also worth noting).


Mass Transit will be built on the Sunshine Coast in the near future, which may be implemented sooner thanks to the Olympic Games. It is believed this will be beneficial to areas like Maroochydore and Slippy Downs, which will have the role of driving the property market.


What are the advantages of buying a house in Brisbane?

1. There are few new houses

Brisbane has always had a very low supply of housing, and despite rising rent, there is a severe housing shortage. At present, new homes account for only 2.8% of the total number of houses, and the number of residential approvals has been declining. The declining number of housing approvals means that, in the short-term, the overall housing volume in Greater Queensland and Brisbane will remain in short supply.


2. Investment advantages

Relative to Sydney and Melbourne, median property prices in Brisbane, Australia, remain low. And record immigration from other states will continue to drive home price growth.


Fortunately in 2022, the impact of Australia's overall house prices entering a correction period due to interest rate hikes, property prices in Brisbane have also returned to a relatively rational state. If you also want to eat the wave of dividends brought by Brisbane as a result of hosting the Olympic Games, you must start decisively.


You can also watch the video below to learn more about buying property in Brisbane:



 

Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.


When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.


So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.


Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.


Alison Australian real estate information platform


The original intention of Miss Alison to establish investwithalison.com is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.


👉Website: investwithalison.com

👉Email: hello@investwithalison.com

👉Linkedin: linkedin.com/in/alisonwongaustralia/



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