Brisbane investors shouldn’t bet on Olympic glory

Buyers should ensure they research Brisbane’s submarkets granularly, said Pete Wargent, co-founder of BuyersBuyers, and also consider the region’s post-Olympic trajectory.

“Like many widely held beliefs in property markets, there may be an element of truth to the staging of the Olympics which is driving aggregate demand. Everyone is talking about the boom in Sydney when property prices nearly doubled in half a decade to 2001, for example, and the Olympics may have played a part in that history, with prices soaring ahead of the event,” he said.

That’s not the whole story, however, according to Mr. Wargent.

“What is not mentioned so often is that after the peak of the Sydney cycle – when interest rates were raised twice in a ‘double hit’ of the brakes in late 2003 – the Sydney market then underperformed all other capitals for six or seven years,” he said.

The story of the London Olympics took place if not the same, then a similar fate for property prices.

“It’s undeniable that property prices have had a strong run ahead of the 2012 Olympics, rising 37% over five years from 2009 to 2014. But since 2017, the London market has been relatively underpriced. performing as the pandemic has seen a general shift in demand to regions across the country,” Wargent said.

The buyer’s agent said the thing to focus on is rapid investment in suburbs that will benefit from gaming-related development.

Here, London provides an example, in the massive regeneration that has taken place in areas like StratfordStratford, VIC Stratford, Queensland and Newham, or other boroughs which hosted elements of the event, such as Barking and Dagenham, Waltham Forest, Greenwich, Tower Hamlets and Hackney.

“Not only have all host boroughs experienced sustained house price outperformance over a decade, but regeneration programs have in many cases resulted in lasting transformation,” Wargent explained.

“Of course, not everyone has benefited from the changes,” he added, but noted that the lasting positive impact of jobs and economic growth in these regions has lasted even as that the games came and went.

As for Brisbane, Mr Wargent said buyers could consider areas like Woolloongabba, with planned infrastructure upgrades for the central district on the maps, and Dutton Park and AlbionAlbion, QLD Albion, VIC Albion, QLD, where housing prices are traditionally more affordable than in some neighboring suburbs. They could quickly turn out to be more attractive with an influx of infrastructure spending.

He also highlighted the development of hamiltonHamilton, QLD Hamilton, NSW Hamilton, VIC Northshore and the possibility of grabbing a unit with a water view as an attractive opportunity, as well as housing in the popular streets of Yeronga and Yeerongpilly, near TennysonTennyson, QLD Tennyson, SAtennis facilities, as areas to watch.

But he also noted that it is important to have a detailed view when buying in Brisbane, assessing details such as the risk of flooding and noise issues of a particular offer.

“Due diligence and careful selection of properties is important,” Wargent said.

“The coming of the Olympic Games to Brisbane is uplifting news, no doubt. It will put the city on the international map and the associated investment in infrastructure will be welcome. just one of many factors impacting the housing market, and if your goal is specifically to enjoy the Olympics, then you will need to conduct more granular research.

About the Author

Juliet Helmke

Based in Sydney, Juliet Helmke has extensive reporting and writing experience in business, technology, entertainment and the arts. She was previously an editor at the New York… Read More

Brisbane investors shouldn’t bet on Olympic glory

spinnaker logo

Last update: January 14, 2022

Posted: January 15, 2022