Key suburbs in the South East Queensland (SEQ) region are set to witness huge gains in median house prices after the 2032 Brisbane Olympics, with some affordable areas likely to break the $1m mark.
A market forecast from PRD Real Estate showed significant gains in extremely affordable areas such as Ipswich, Redland Bay, and Coomera.
The forecast was based on the median price growth between 2003 and 2015, which captures the years prior to the 2014 G20 Brisbane Summit and the year after.
During the period, median prices in South Bank and surrounding suburbs increased by an average of 111.6%.
Applying this rate, prices in affordable SEQ suburbs would reach $1.15m in Ipswich, $1.75m in Redland Bay, and $1.50m in Coomera.
Meanwhile, the more prime suburbs like Hamilton, Chandler, and Alexandra Headland could see median prices go over $4m, with Hamilton likely to hit $5.3m.
The table below shows how substantial the 111.6% increase in median prices would be in each of the key Olympic suburbs. Take note that all prices in the table refer to houses — only Broadbeach prices are for units.
|
Suburb |
Current Median Price – 2022 |
Projected Median Price – 2033 |
|
Hamilton |
$2.198m |
$5.31m |
|
Tennyson |
$850,995 |
$1.8m |
|
Chandler |
$1.98m |
$4.19m |
|
Woolloongabba |
$1.39m |
$2.94m |
|
South Brisbane |
$1.34m |
$2.82m |
|
Redland Bay |
$827,500 |
$1.75m |
|
Ipswich |
$475,000 |
$1.15m |
|
Herston |
$1.56m |
$3.29m |
|
Spring Hill |
$1.38m |
$2.91m |
|
Beaudesert |
$490,000 |
$1.04m |
|
Coomera |
$710,000 |
$1.50m |
|
Broadbeach |
$770,000 |
$1.63m |
|
Alexandra Headland |
$2.25m |
$4.76m |
|
Twin Waters |
$1.23m |
$3.07m |
Will the Brisbane Olympics boost housing supply?
Based on historical data, hosting the Olympics typically has long-term effects, with previous cities seeing healthy supply and demand that led to robust price growth.
For instance, most of the athletes’ villages in main CBD areas during Sydney 2020, Beijing 2008, and Tokyo 2020 were utilised as build-to-rent and other accommodations for owner-occupiers and investors after the event.
However, serious planning is needed to be able to take advantage of the potential of these accommodations as a supply boost. Rio 2016 and Athens 2004 lacked concrete planning and management, which led to the underutilisation of new supply.
The Queensland government is set to repurpose the Northshore Hamilton Priority Development Area for the Olympics. The proposal includes the following:
- Two hotel towers of 181 apartments in Woolloongabba – Olympic Stadium site
- 182-room hotel development – Mooloolaba
- 196-room hotel tower – Manors Gate group Broadbeach
- 252 apartments - Signature Broadbeach Project
- 10,000 bed villages in Athletes Village – North Shore Hamilton
The state government aims to utilise the Olympics in accelerating the delivery of existing long-term plans on the Northshore-Hamilton area, amending the plans to include new residential, commercial, retail, and mixed-use development opportunities.
According to PRD, this is the “golden opportunity” to harness the potential of the event to create a well-planned housing supply legacy that would be able to cater to a range of demographics.
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Photo by @inspiredimages on Pexels.Photo by Anthony: https://www.pexels.com/photo/gray-olympics-concrete-block-133325/Photo by Anthony: https://www.pexels.com/photo/gray-olympics-concrete-block-133325/Photo by Anthony: https://www.pexels.com/photo/gray-olympics-concrete-block-133325/
