2032 Olympics To Triple Brisbane’s Median House Price To $1.7m
Brisbane's successful bid to host the 2032 Olympics will certainly have a massive impact on the local property market, with one economist predicting the median house price will triple to $1.7m.
The current median house price sits at $674,738.
While the Olympics is still 11 years away, past international events the city hosted could give a glimpse as to what could happen with house prices.
International events and price gains in Brisbane
Brisbane is no stranger to hosting the world's biggest events. Two key events that took place in the city in the past were the World Expo in 1988 and the G20 Summit in 2014.
An analysis by PRD Research showed a surge in prices during the 11 years prior to and the year after these two events.
For instance, the median price in Brisbane had increased by 278.8% during the period prior to the Expo 1988. House prices in South Bank and its surrounding suburbs more than tripled at the same time.
In the year after Expo 1988, house prices grew by a further 29.7% in Brisbane and 19.1% in South Bank and nearby suburbs.
A similar trend unfolded when the city hosted the 2014 G20 Brisbane Summit.
In the decade before the event, property prices surged by 112% in Brisbane and 116% in South Bank and nearby suburbs.
"It is clear from the above key findings that hosting both Expo 1988 and G20 Summit has served the Brisbane property market well,” said PRD Research chief economist Dr Diaswati Mardiasmo.
“That is both in the short term of one year after the event, and the long term throughout the 12 years’ time frame of preparation, hosting, and post-event.”
Taking into account these two events, Dr Mardiasmo predicts property prices in Brisbane could rise to $1.7m by 2033, a year after the Olympics.
"That said, data shows property price growth move at different speeds. Because of this difference, there is a potential that Brisbane’s median house price will not travel as far," Dr Mardiasmo said.
Dr Mardiasm noted there were differences in the pace of property growth in past events, but even going at “half-strength” would still see the median house price reach $1.2 million by 2033. Source: yourinvestmentpropertymag.com.au