Brisbane, Australia’s third-largest economy, has been selected as the venue for the 2032 Summer Olympics. According to past cases, when it is decided to hold a national event such as the Olympics, real estate prices will rise due to the momentum of redevelopment and urban development. What about Brisbane? Mr. Morisaku Sunagawa, representative of Wide Estate Co., Ltd., which has been engaged in the real estate business in Australia for 32 years, will explain.
Competition held in “SEQ area” centered on Brisbane
On July 21, the IOC (International Olympic Committee) officially decided to host the 2032 Summer Olympics and Paralympics in Brisbane, Australia’s third economic city.
I live in Australia, but following Melbourne in 1956 and Sydney in 2000, it has been decided that the world’s largest sports event will be held again, and Brisbane will hold various competitions including the main venue. The surrounding area is crowded with this news.
In addition to Brisbane, many competitions will be held on the “Gold Coast”, which is also known as a resort area. The reason for the Gold Coast is that the Commonwealth Games, the largest sporting event by Commonwealth member states, is being held in 2018, and the sports competition facilities built for it can be used.
By the way, Brisbane and the Gold Coast are located in Queensland, eastern Australia. The Queensland government has designated the 120km area (including the Gold Coast) centered on Brisbane as a “strategic growth area” called “SEQ (South East Queensland Region)”. Translated as “Southeast Queensland”. Various Olympic competitions are held in this SEQ area.
This SEQ area, which stretches between the two cities of Brisbane and the Gold Coast, has always been a cornerstone of political and economic debate. As if to symbolize it, according to the land appraisal information released by the state government, this SEQ area stands out in terms of the number and amount of real estate transactions, among which Brisbane and the Gold Coast stand out.
What will happen to Brisbane’s real estate prices when the Olympics are decided?
When the Olympics are decided, the image that “real estate prices will rise or are likely to rise” will come to mind first due to redevelopment and urban development (construction of stadiums and the Olympic Village, etc.). The Olympics are the largest sporting event in the world, and it is easy to imagine that they will have a big impact on the market, and it is natural that expectations will rise rapidly.
So what about the reality?
In Australia, real estate economists are now analyzing the promising rise in real estate prices in the light of past cases. Here, I would like to introduce the comments of two experts and give my opinion.
Tim Lawless, director of Australia’s leading real estate research firm Corelogic, said, “The Olympic Games were held in Sydney in 2000, but during the seven years from 1993 to 2000, when it was decided to hold the Olympics, real estate Prices have risen by more than 60%, which is one case. ”
Diaswati Mardiasmo, Chief Economist of PRD Real Estate Research Company, said, “The G7 Summit was held in Brisbane in 2015, but the real estate price was 112.7 in the 12 years from 2003 to 2015 when it was decided to hold it. By 2032, Brisbane’s real estate prices could double, given this case study. ”
I have lived in Australia for 34 years and have also experienced the 2000 Sydney Olympics and the 2015 G7 Summit. As a result, I still vividly remember that the real estate market was getting hotter as national events approached, and I’m not at all uncomfortable with the comments made by the two people.
Of course, there is an important factor (key) for real estate prices to rise
However, since the SEQ between Brisbane and the Gold Coast is the “strategic area” of the Queensland government, it is expected that government and private investment will accelerate in the future with the official decision to host the Olympics. As a result, we believe that there is a high probability that prices of real estate in Brisbane and the Gold Coast will rise.