[+] Game On: Queensland’s Golden Suburbs Revealed

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These are Queensland’s so-called ‘Olympic suburbs’ where property prices are set to rise following the world’s biggest sporting event in 2032.

In the year after the Olympic flame is extinguished, median home prices are expected to be in the $1-2 million range in many areas, and in some cases as high as $2-3 million.

But while a handful of the 14 key locations are already easing from a residential development perspective, in the other areas there are little to no preparations for a gold-medal winning run to capitalize on growth. expected prices.

“There are certainly some areas where there’s very little development about to happen…and what we’re basically saying is that’s where the opportunities are at the moment,” said the director. chief economist of the PRD, Diaswati Mardiasmo.

Among those areas, all listed in a new PRD report, are the Brisbane suburbs of Tennyson, Herston and Chandler, Twin Waters and Alexandra Headland on the Sunshine Coast, and the Scenic Rim’s Beaudesert.

A year after Brisbane’s successful bid, the report outlining future housing supply in South East Queensland for the Olympics states: “Existing residential supply for the 2032 Games needs to be further developed by compared to other Olympic Games.

“Previous Olympics injected housing supply into high-demand markets, which dampened housing affordability.

“Now is a golden opportunity to harness the potential to create a legacy of knowledgeable housing supply that targets a range of demographic needs,” he says.

Mardiasmo, who also has a chair at the Brisbane Olympics Legacy Committee table, says the data clearly shows where the opportunities currently lie and that residential developers should act sooner rather than later.

“If you look at some of these areas identified as Olympic suburbs like Tennyson and Chandler, there’s nothing, nothing goes in there,” she said. The urban developer.

▲ Investment in the Games is on track: inside the Anna Meares Velodrome in Chandler.

“Of course, we still don’t know what the future supply will be from 2027…but you kind of want to hit it now, when there’s this low price and level of affordability so you can take advantage of it. later. ”

According to the report, the multiplier effect of the Brisbane Olympics “will be significant” compared to the Sydney 2000 Games.

“Sydney has become a brand, so Brisbane will follow,” he says.

“Hosting the Olympic and Paralympic Games in Brisbane in 2032 will create an Olympic legacy. This will ensure international recognition of the city and increase migration and tourism from other nations.

Employment opportunities, one of the main ingredients for house price growth, will also increase, leading to greater purchasing power. In addition, the increase in population growth combined with the current lag in housing supply could lead to even greater price growth.

The report says the Olympics and other international events have had long-term effects on host cities, with “a strong trend of increasing supply and demand for housing, leading to healthy growth in price”.

His data shows that in the year following the 2000 Sydney Olympics, the staging of Expo 88 in Brisbane and the 2014 G20 Summit, the median average house price growth across the three events was 14.3%.

“Applying this to median house prices in 2022, many suburbs become million dollar areas, such as Woolloongabba, South Brisbane, Herston, Spring Hill and Twin Waters. Many other areas are closing in, such as Tennyson and Broadbeach,” he says.

As another indicator, the report also applies the median house price increase of 111.6% in South Bank and surrounding suburbs in the decade before and year after (2003-2015) the reception of the G20 summit at major 2032 Olympic suburbs.

It calculates that such growth would see Olympic suburbs including Hamilton and Chandler cross the $4 million median price mark, Spring Hill push $3 million and currently affordable key locations like Ipswich, Redland Bay and Coomera crack 1 million dollars.

Data on future supply in the report has been compiled from the latest records of residential development plans and approvals over the four-year period to 2026 in the Olympic areas and areas earmarked for major investment in infrastructure.

“The known residential development from 2022 to 2026 suggests a greater emphasis on apartments and units,” it says.

The data points to a pipeline of 9,589 new homes (apartments, townhouses, flats and land) for the Brisbane local government area, 16,945 for the Gold Coast and 6,520 for the Sunshine Coast.

Of all the Olympic suburbs, Broadbeach, Coomera, Ipswich, Redland Bay, South Brisbane and Woolloongabba account for the lion’s share of future residential supply in key locations.

▲ Ipswich is one of the places where the bid will jump off the back of the Brisbane Olympics.

The release of the report follows the Queensland Government’s convening of a housing summit in October to address critical housing affordability and supply issues across the state.

“I think the housing summit has come at a really critical time because the need is dire and it will be great for short-term solutions,” Mardiasmo said.

“But when it comes to housing, I think we have to play not just the short-term game, but the long-term game, especially a post-Olympic strategy, so it kind of works hand in hand.”

Not only are the Olympics estimated to provide an $8.1 billion boost to the state’s economy, but figures from previous Games also show they will fuel a boom in housing supply.

In the year since the pandemic-delayed Tokyo Olympics, a total of 5,632 apartments have been added to the city’s supply and within five years this is expected to increase to 9,777 apartments as well as 1,637 other accommodations. The London Olympics held a decade ago injected another 4,500 apartments into the city’s inventory.

But Mardiasmo is quick to point out that Queensland lacks a definitive housing strategy and not all Games have successfully managed this opportunity.

“At the moment it’s still a pretty abstract plan,” she said. The urban developer.

“If we’re going to spend billions of dollars to put on an Olympic event, or any event for that matter, you want something that can last, a legacy that can be used again and again…the gift that keeps on giving.

“And so, I think we’re at that critical juncture right now.

“We still don’t have a defined strategy for what will happen to housing after the 2032 Olympics.

“I mean, yes, the Olympics are still 10 years away, but you can’t make the plan once they’re over. It’s something we really need to start sleeping now.

“Previous Olympic Games have proven that they can benefit housing supply if done correctly.

“But, you know, if it’s not managed properly, look at Rio and Athens where the majority of the supply created has been abandoned due to lack of planning and management.”

▲ The abandoned Olympic venue for beach volleyball from the Athens 2004 Games.

Unlike the Sydney 2000 Games, there are no plans to use modular or moveable accommodation during the Brisbane Olympics.

The Queensland Government is keen to use the Olympics to accelerate the completion of existing long-term plans in the Northshore-Hamilton area of ​​Brisbane, amending plans to include new residential, commercial, commercial and mixed-use developments .

This will be the site of the Athletes‘ Village and there are plans to repurpose it to provide a diverse residential offering including retirement residences, aged care, social and affordable housing, student accommodation, rental buildings and housing of the market.

In total, this new land supply should catalyze $500 million in private investment and create 1,600 jobs in the construction sector.

The increase in hotel accommodation is also already underway for Woolloongabba, Mooloolaba and Broadbeach comprising a total of 630 rooms.

But Mardiasmo says more is needed.

“We can certainly learn from all the other Olympics how come they have created a strategy that, as I said, continues to deliver when it comes to housing supply.

“At the moment, we know that there are a lot of construction challenges and the projects are not easy to create.

“But from a developer’s perspective, the data in the report shows that the opportunities are there, and where they could be, to capitalize on the Olympics, which will create more growth and increase housing demand.

“Already, with interstate and international migration, Queensland’s population growth isn’t slowing anytime soon and our housing supply is lagging behind.

“It’s a concern, especially as we approach the Olympics and with the demand that we know is coming to an end.

“So I think more direction is needed in terms of what we have to create and what we’re going to create. We have to plan smartly.



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