- Brisbane could see massive economic booms if Olympics done right
- Plan, plan, plan said The Property Council and academics
- Long term boons unlikely, the buoyed period possibly short-term only
Update: The 2032 Games have now officially been awarded to Brisbane.
There are strong indications Brisbane will play host to the 2032 Olympic and Paralympic Summer Games.
The announcement was made earlier today that Brisbane was the preferred host, and in those immortal words: “There’s never been a better time to be Australian”.
But has there been a better time to invest in Brisbane property?
Major events like this can make a big splash in the economy, negative or positive, but what could happen in the home of the banana benders?
View our residential property perspectives here.
What will happen to the economy?
Olympics have been infamous for becoming white elephants, leaving host cities in horrid debt for years and years.
The Property Tribune spoke with Professor John Quiggin from the School of Economics at the University of Queensland and asked about the potential impacts of the Olympics.
Though it has been widely touted as a great benefit to the Queensland economy, Professor Quiggin told The Property Tribune: “The alleged economic benefits are overstated in my view”.
Professor Quiggin said the “estimate of 100,000 visitors compares to a normal (non-COVID) level of 500,000 short-term visitors to Australia every month,” suffice to say the numbers aren’t anything to write home about.
Commercial property boom?
The argument for construction jobs, and jobs related to maintenance and operations are in the headlines again but what are the real long term benefits?
Professor Quiggin said that he’s “never seen any evidence to support the view that there is a long-term benefit from international exposure.”
The Property Tribune asked Bond University’s Honorary Adjunct Professor, Dr Clive Warren about what the commercial property market could like once the Olympics come to town:
“There will be an obvious positive impact on the construction industry with building of venues for the games and if Sydney is anything to go by there will be increased construction costs which may impact construction of other commercial buildings.”
Dr Clive Warren, Honorary Adjunct Professor, Bond University
Calls for strategic long term planning were also made, Dr Warren said “if this is well planned then the strategic planning will mean that post the games the infrastructure created enhances the locations in which it is built. The outcome is improved transport around the city and significant uplift in the value of both residential and commercial property in the immediate vicinity of the new transport hubs.”
The Property Council of Australia also came out with support for the Olympic Games, Executive Director of the Property Council in Queensland, Chris Mountford, said:
“Done right, the Olympics will be a catalyst for improving the region’s connectivity, livability and prosperity over the next two decades.
A critical next step in leveraging this opportunity is pushing ahead with the SEQ City Deal.”
Chris Mountford, Executive Director, Property Council Queensland
Dr Warren told The Property Tribune, there is a potential for oversupply when the games wrap up, commercial and residential properties being adapted for longer-term use.
Lessons from Sydney: plan, plan, and plan again.
Dr Warren said “I think the lessons, particularly from the Sydney games is that they positively impacted the economy of the site of the games and more broadly the city and NSW economy. While the costs of hosting are high, good forward planning around infrastructure and sensible use of facilities post the games all impact positively on the Olympic sites and larger region.”