Property gold: The suburbs to buy in now to cash in on Olympics
These are suburbs investors should buy property in now to reap financial gold from Brisbane hosting the 2032 Olympic Games.
HOUSE prices in the Olympic City could skyrocket by more than 100 per cent by the time Brisbane hosts the Games, with experts urging investors to get in to the market now to cash in on financial gold.
Woolloongabba, Hamilton, Herston, Coomera and Bokarina have been revealed as some of smart the suburbs to buy into, with infrastructure upgrades, fasttracked transport projects and double-digit price growth expected within a year of this week’s announcement.
Here are the southeast Queensland suburbs experts say property investors should buy in now for future capital growth:
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WOOLLOONGABBA
Median house price: $995,656
Median unit price: $457,244
The obvious candidate for an uplift in buyer demand and property prices is Woolloongabba, where the proposed billion-dollar overhaul of The Gabba stadium will be the epicentre of Olympic activity.
The stadium is set to undergo a major redevelopment, which will increase its seating capacity from 42,000 to 50,000 to host the opening and closing ceremonies and athletics.
The upgrade would include a new pedestrian plaza linking the stadium to Woolloongabba’s new Cross River Rail station, currently under construction.
CoreLogic research director Tim Lawless said Woolloongabba unit prices were still affordable compared to other inner south unit markets.
“The lower price point, combined with upcoming capital investment on infrastructure, are likely to be a popular combination with investors and developers alike,” Mr Lawless said.
Place Advisory researcher Connor Read said property prices in the suburb were already starting to increase as a result of Cross River Rail.
“It’s no coincidence that Silk One Woolloongabba received the most inquiries out of any Queensland residential apartment development in June,” he said.
Suburbtrends director Kent Lardner said the Woolloongabba unit market was currently considered a buyer’s market, with supply still relatively high.
“With around 62 units on average listed for sale, it will not take too much of an increase in demand to see this market see price rises after a relatively slow few years,” he said.
HAMILTON
Median house price: $1.86m
Median unit price: $494,053
Hamilton northshore is where the proposed 14-000 bed Olympic Athletes Village will be built, given the large amount of government-owned land that is currently home to East Street Markets and surrounds.
Mr Read said it was one of the largest and closest inner-city areas with the capability for major development in Brisbane, and while investors had generally shied away from apartments in Portside Wharf because of the lack of connectivity, that would likely now change.
“With the limit for transport from athlete villages to major stadiums being 20 minutes, you would expect that this area will see an upgrade in public transport, which will increase livability for Portside residents and, in turn, home values,” he said.
It’s likely the Olympic Village would be transformed into affordable housing stock post-games, giving build-to-rent operators the opportunity to support its development to rent it to the state government in the first instance and then transform it into build-to-rent stock post-games.
KANGAROO POINT
Median house price: $1.075m
Median unit price: $552,568
The new pedestrian/cycle bridge, known as Green Bridge, will be a game changer, connecting the CBD to Kangaroo Point and the nearby central hub of the Olympics — the Gabba.
To be completed by 2023, the bridge is also expected to be activated by commercial/ retail outlets. Mr Read said he would not be surprised if the construction timeframe was now fasttracked.
“Any riverfront suburb that is going to benefit from the lasting effects of green bridges well after the Olympics have passed will see values increase as liveability increases,” Mr Read said.
Raymond Park will be upgraded to be used as a warm-up field for athletes.
Mr Lardner believes the unit market in Kangaroo Point is ripe for the picking, with prices increasing in the past 12-months, but market conditions still not quite hot.
ALBION
Median house price: $978,662
Median unit price: $440,373
The Olympic bid document proposes the conversion of the current Albion Park dog track into a new 50,000-capacity stadium, which could also host ceremonies and athletics.
Mr Read said that the new Albion Exchange, a retail and commercial development being built around the existing train lines, would create greater connectivity to the venue.
EAST BRISBANE
Median house price: $967,000
Median unit price: $460,332
Mr Lardner likes this suburb for houses and predicts the current median house price will surge past $1 million in the coming months in the wake of the Olympic Games announcement.
“With the average number of houses listed for sale in this suburb 25, it is considered a seller’s market, but it won’t take too much for this market to ignite,” he said.
HERSTON
Median house price: $1.07m
Median unit price: $477,500
The traditional home of Queensland Rugby, Ballymore, in Herston, is set to be transformed into a 15,000-capacity hockey venue.
Redevelopment work at the iconic stadium started in February to modernise its facilities.
Brisbane Live — a new 18,000-seat entertainment arena being constructed above the new Roma Street underground train station — is likely to host swimming and water polo and be an entertainment and community hub for the Games.
CHANDLER
Median house price: $1.8m
Median unit price: N/A
A new 10,000-capacity Chandler Indoor Sports Centre has been proposed to replace the existing Chandler Arena, and it would host gymnastics.
The existing Brisbane Aquatic Centre in the suburb is set to host diving, artistic swimming and water polo.
IPSWICH
Median house price: $410,935
Median unit price: N/A
Work has commenced on a new 10,000-capacity arena in Ipswich as part of a larger complex that will include an elite indoor training facility, gymnasium, pool, childcare centre and an events lawn.
To be completed next year, it looks set to host the modern pentathlon.
REDLAND BAY
Median house price: $670,552
Median unit price: n$484,000
A whitewater centre will be built at Birkdale with an Olympic standard course to host Slalom Canoe as part of a wider adventure park.
Construction is due to start in 2024 and is expected to bring forward road, rail and bus infrastructure projects, including the possible duplication of the Cleveland railway line and the completion of the Eastern Busway to Capalaba.
ROBINA
Median house price: $768,750
Median unit price: $523,250
More than 2,600 athletes and team officials will be housed at the Athletes’ Village within the planned Collyer Quays residential development at Robina.
The location close to a major shopping centre, Robina Town Centre, and within the Robina-Varsity Lakes office precinct should make it attractive for residential and build-to-rent developers looking for investment opportunities suitable for low-to-medium income earners, according to Colliers director of residential Andrew Scriven.
BOKARINA
Median house price: $1.16m
Median unit price: N/A
The Sunshine Coast Stadium in Bokarina is set to be upgraded to 16,500-capacity to be able to host football during the Games and a new indoor sports centre is also planned for the suburb to host basketball preliminary matches.
(Source: Place Advisory, PRD Research, Suburbtrends.com)
PRD Research predicts Brisbane’s median house price could surge 112 per cent to $1.6 million by 2032, based on comparisons with the lead-up to other international events hosted in the city such as the G20 summit and Expo ‘88.
PRD compared median house prices from 11 years prior to the event, quoting 12 years’ growth to include the year after the event, to allow for a fairer comparison to Olympic 2032 timings.
In the suburbs surrounding these events, house prices grew on average by 335 per cent in the 12 years before Expo ’88, while unit prices grew 153 per cent.
In the 12 years leading up to the G20 Summit in 2014, house prices in suburbs surrounding the event grew on average by 82 per cent, while units spiked by 110 per cent.
“Based on what happened to prices when Brisbane hosted other international events, current available government support for home ownership, and our ‘bubble’ from international demand, now would be an extremely advantageous time to invest in Brisbane,” PRD chief economist Diaswati Mardiasmo said.
“If we base our predictions from 12 years after the announcement of the event, which is 1 year after the event was held, there is immense price growth to be had. It looks like we will be a $1 million city sooner than later!”
PRD has also looked at the suburbs where Olympic infrastructure is proposed and compared property price growth in the past decade to determine how much they could grow in the next 10 years.
The analysis shows double digit growth at least is on the cards, with Hamilton recording 100 per cent growth in house prices in the past decade.
“It would be a smart investment decision to capitalise on (the Olympics by) getting into one of these markets now in preparation,” Dr Mardiasmo said.
Mr Read said he expected inquiries for property to spike in the immediate wake of the announcement — particularly from international investors.
“The games will place more eyes than ever before on Brisbane and people will be drawn to
the lifestyle, liability, and affordability in comparison to Sydney and Melbourne,” Mr Read said.
But he said significant increases in home prices might not happen until transport infrastructure announcements were made.
“I think it’s worth people analysing where they think long-lasting, connecting transport infrastructure is going to be built,” he said.
Data following the Sydney Olympics in 2000 shows the median house price rose more than 140 per cent over the next 10 years — from $188,000 in 1993 to 454,250 in 2003.
“The year after Sydney Olympics 2000, the number of sales in Newington and its surrounding suburbs increased by 58 per cent, and median house price increased by 13.4 per cent,” Dr Mardiasmo said.
“With lessons learnt from Sydney and how Brisbane prices have travelled over the past 18 months, it wouldn’t be surprising to see a similar trend. We might see property demand frenzy the year prior and after the Olympics, giving us double digit growth.”
Local developer Rob Gray of Graya said he expected “a rush to get into the market” and double-digit price growth in the next 12 months as a result of Brisbane winning the Olympic bid.
“I think every landholder should be cheering,” Mr Gray said.
“I think there will be a 12-month spike and then it will slow for a few years after that, then start again closer to the leadup.”
He said the money would likely come from “interstate people with bigger wallets”.
Mr Scriven said the winning Olympic bid coupled with unprecedented low interest rates and solid interstate migration would change the landscape of the southeast Queensland property market.
“This means that property prices will continue to grow at rates above their historical averages, making it a good location for investment and development activity,” Mr Scriven said.
Originally published as Property gold: The suburbs to buy in now to cash in on Olympics
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