Property investors who want to truly take advantage of the Brisbane Olympics must get “granular” and consider areas just outside Brisbane to invest into.
BuyersBuyers cofounder Pete Wargent said lessons can be learned from the previous Olympics held in Sydney in 2000.
“Everyone talks about Sydney’s boom when house prices all but doubled over half a decade up to 2001, for example, and the Olympics may have played a part in that story, with prices booming in the lead up to the event,” Mr Wargent said.
“What’s not mentioned so often is that after the Sydney cycle peaked — when interest rates were hiked twice in a ‘double tap’ on the brakes in late 2003 — the Sydney market then underperformed all of the other capital cities for six or seven years.”
This is similar to what happened in the London Olympics 2012 — prices in the city had a solid run in the lead-up the sporting event and a few years after, rising by 37% over five years starting 2009.
However, the London market has been a relative underperformer since 2017.
“The takeaway message from London was the massive regeneration which took place in areas like Stratford and Newham, or the other London boroughs to host the Olympics,” Mr Wargent said.
“Not only did all of the host boroughs experience sustained outperformance in property prices over the course of a decade, but the regeneration schemes in many cases resulted in a lasting transformation.”
Where investors will benefit the most
Mr Wargent said property investors need to take a granular approach to “genuinely” benefit from the upcoming Olympics.
The suburb of Woolloongabba is one spot to watch out for, particularly with the development of the Gabba stadium and Cross River Rail station.
“Dutton Park - and possibly Albion - are two other locations where housing prices have traditionally been a little more affordable than some of the surrounding suburbs but may now experience favourable investment and infrastructure,” Mr Wargent said.
Mr Wargent said a detailed view should be considered when looking at some of the suburbs, as some areas might be impacted by flooding risks.
“Another excellent spot for growing housing demand will be the desirable streets of Yeronga and Yeerongpilly, as the tennis comes to town at Tennyson and the urban regeneration continues apace, and as the Cross River Rail connects the south side of Brisbane back up to the Gabba and the city,” he said.
Hamilton Northshore would also be a great option and units with water views will continue to be a top consideration for many homebuyers.
“The Olympics coming to Brisbane is uplifting news, no doubt and it will put the city on the international map, and the associated investment in infrastructure will be very welcome,” he said.
“But remember, this is only one factor of many impacting the housing market, and if your goal is specifically to benefit from the Olympics, then you’ll need to conduct more granular research.”
Photo by @aliceduffield on Unsplash
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