Brisbane and Queensland property costs may very well be set to rocket but additional on the again of the 2032 Olympic Video games.
PRD researchers predict that the median property worth in Brisbane will high $1m for the primary time and will go as excessive as $1.7m, if the Olympics have the same impact to earlier worldwide occasions which have taken place within the area.
PRD are usually not the primary to make such calls: final week, a peak physique CEO for property buyers detailed to Australian Dealer how a lot property prices on the Gold Coast and Sunshine Coast would possibly profit from the Video games.
Dr Diaswati Mardiasmo, chief economist at PRD, stated that the predictions had been primarily based on metrics developed utilizing main occasions that has taken place in Brisbane beforehand, such because the G20 Summit of 2014 and the World Expo of 1988, in addition to the plain comparability of Sydney home costs after the 2000 Olympics.
“We used the expansion that occurred within the 12 years all through the G20 Summit,” she stated. “For apple and apple comparability’s sake we went throughout that entire interval. If you concentrate on it proper now, we’re 11 years away from the Olympics, so the yr after can be 12 years from now.”
“We tracked what the median home worth was 11 years previous to G20 and what it was a yr after. That method, it offers us the identical timeframe for the Olympics.”
The area already boasts the fastest rising house prices on the East Coast of Australia and that may very well be set to rise above the symbolic $1m median property worth marker.
“We discovered that the median home worth went up by about 112.7% between 11 years prior and one yr after the G20. If we use that development, 112.7%, and we apply it to the present Brisbane median home worth for the entire of the council space, which simply broke $800,000, we come to the calculation that the median home worth can be $1.7m by 2023.”
“Now, we do know that the property market can transfer at totally different speeds. The final time that Brisbane had an enormous worldwide occasion that made everybody go wow was Expo 88. Utilizing the identical timeframe, 11 years earlier than and the yr after, median home costs went up 300%.”
“Again within the 80s, it went up 300%, in 2014 it went up by 112%, so there’s undoubtedly totally different speeds available in the market, so we went half power. Even when you try this, you continue to find yourself at $1.2m by 2033 as a median worth.”