Brisbane has won the bidding process for 2032 meaning Australia will host the Olympics for the third time, only the second country after the United States to have done so.
What does this mean for Brisbane’s economy and property market?
In the vote a couple of days before Tokyo’s Olympic opening ceremony, IOC delegates overwhelmingly voted for Brisbane to host the 2032 Olympic Games.
Speaking on the decision to elect Brisbane for the 2032 games, the IOC president Thomas Bach said:
“It’s a very sustainable project with a great legacy and it’s a project from a sports-loving nation and this is what it is all about, to see sports-loving Aussies facilitating the Olympic Games. I hope I can still make it till then to be there.”
Australian Olympic Committee president John Coates, who worked on lobbying for the 2000 Olympics in Sydney led the Brisbane bid.
As the costs involved in hosting the Olympics continue to rise the economic benefits are always debated with some countries withdrawing bids due to concerns around finances. Tokyo, having to postpone the games due to Covid-19 will most likely be faced with the most expensive summer games to date.
There are however huge benefits to hosting the Olympics, including increased tourism, injecting billions into the economy as well as a kick-start to local infrastructure projects.
With South East Queensland’s large population growth spurt, roads, hospitals and other social infrastructure construction is not keeping up, however hosting the Olympics will force everyone involved to work together on a broad infrastructure agenda.
Fortunately for Brisbane, 80% of the infrastructure required to host the games is already in place or can be delivered through temporary overlay situations, thanks to the Gold Coast’s 2018 Commonwealth Games, reducing the Games price tag significantly.
The Brisbane bid estimated a $4.5 billion cost, with the IOC providing $2.5 billion and the remainder being raised from ticket sales and sponsors.
According to KPMG, by hosting the 2032 games, Australia stands to gain an around $17.61 billion worth of potential benefits nationwide, a figure similar to that which The Chief Economist of Westpac, Besa Dada has arrived at.
“In the case of the 2032 Games, it is possible we will see at least $17 billion of economic and social benefits for Australia, with around $8 billion of that flowing into Queensland.”
The Queensland State Olympic and Paralympic Taskforce has estimated that the event could create 130,000 direct jobs, with tens of thousands of indirect jobs including 10,000 tourism jobs during the games year.
While the Brisbane Olympics are still 11 years away, large-scale developments including transport infrastucture improvements that might have been in the 30-year plan for Brisbane will be brought forward and property values will be boosted in areas that construction and developments are taking place, particularly suburbs such as South Brisbane/Woolloongabba and North Hamilton.
CoreLogic’s Asia-Pacific Research Director Tim Lawless identifies:
“Large infrastructure projects tend to have a positive influence on housing prices, with the extra requirement for workers creating additional demand for housing during the construction process.”
“Large projects also tend to leave a legacy of a permanent housing demand uplift, either through additional employment or via other benefits such as improved transport options and travel efficiencies related to transport infrastructure projects as well as additional amenities introduced to the area including social and retail outlets.”
With long term improvements and construction for Brisbane’s Olympic Games about to kick off, Queensland’s property market is likely to receive a boost like no other.