By Mike Wood
Brisbane and Queensland property prices could be set to rocket yet further on the back of the 2032 Olympic Games.
PRD researchers predict that the median property price in Brisbane will top $1m for the first time and could go as high as $1.7m, if the Olympics have a similar effect to previous international events that have taken place in the region.
PRD are not the first to make such calls: last week, a peak body CEO for property investors detailed to Australian Broker how much property prices on the Gold Coast and Sunshine Coast might benefit from the Games.
Dr Diaswati Mardiasmo, chief economist at PRD, said that the predictions were based on metrics developed using major events that has taken place in Brisbane previously, such as the G20 Summit of 2014 and the World Expo of 1988, as well as the obvious comparison of Sydney house prices after the 2000 Olympics.
“We used the growth that happened in the 12 years throughout the G20 Summit,” she said. “For apple and apple comparison’s sake we went across that whole period. If you think about it right now, we’re 11 years away from the Olympics, so the year after will be 12 years from now.”
“We tracked what the median house price was 11 years prior to G20 and what it was a year after. That way, it gives us the same time frame for the Olympics.”
The region already boasts the fastest rising house prices on the East Coast of Australia and that could be set to rise above the symbolic $1m median property price marker.
“We found that the median house price went up by about 112.7% between 11 years prior and one year after the G20. If we use that growth, 112.7%, and we apply it to the current Brisbane median house price for the whole of the council area, which just broke $800,000, we come to the calculation that the median house price will be $1.7m by 2023.”
“Now, we do know that the property market can move at different speeds. The last time that Brisbane had a massive international event that made everyone go wow was Expo 88. Using the same time frame, 11 years before and the year after, median house prices went up 300%.”
“Back in the 80s, it went up 300%, in 2014 it went up by 112%, so there’s definitely different speeds in the market, so we went half strength. Even if you do that, you still end up at $1.2m by 2033 as a median price.”