Brisbane’s Olympic surge set to brighten property outlook

Brisbane’s transition from a pandemic safehaven to Olympic powerhouse is set to deliver widespread property benefits.

Commercial agency Burgess Rawson is tipping the 2032 Olympic Games will spur activity across Queensland, with the benefits to spread beyond traditional asset classes.

Burgess Rawson managing director Adam Thomas said there was a notable shift in investor interest towards Queensland, which is seen as a pandemic safe haven, in the wake of lengthy lockdowns in Sydney and Melbourne.

Mr Thomas, who shifted to Brisbane earlier this year, said Queensland’s non-discretionary assets like health care, child care, liquor retail and hotels would weather the latest storm brought on by higher interest rates.

“From its golden child status at the peak of the pandemic to the green and gold fever that has followed the announcement of the 2032 Olympic Games, some segments of South East Queensland’s commercial property sector have enjoyed a steady flow of capital and an uplift in values,” Mr Thomas said.

“Major infrastructure projects, including Cross River Rail, Brisbane Metro, Herston Quarter, Queen’s Wharf, along with the Eagle St Pier redevelopment by Dexus, will create their own gravitational orbit, and we expect to see specialist retail, medical, child care, and select industrial assets establish off the back of these nodes.”

Burgess Rawson Queensland managing director Adam Thomas. Source: Supplied

Further north to Townsville, he expects its 15-year City Deal has cemented the region as one on the move.

“Large format retail is already upsizing and repositioning for the growth that’s to come in Far North Queensland and we’re expecting major industrial, distribution and logistics precincts will develop in the short-term in Townsville,” he said.

Burgess Rawson Queensland plans to regularly host an auction event every six to eight weeks.

At the last two events, competition was healthy for good assets in capital city, regional and suburban locations, including a mixed-use retail and commercial property in Bongaree on Bribie Island, which sold for $7.2m on a yield of 5.76 per cent, Ascot Medical, in Brisbane’s inner north, which sold for $1m over reserve after more than 60 bids, and a Toowoomba childcare centre, which sold for $5.75m on a yield of 4.91 per cent.

Mr Thomas said the longer lead up to the Brisbane Olympics would be beneficial for the market, allowing for greater investment despite interest rates rising.

Burgess Rawson hopes to double its headcount in Queensland by the end of 2023.