Olympics to drive up Brisbane house prices

Brisbane's median house price is expected to double before the 2032 Olympics.
Brisbane's median house price is expected to double before the 2032 Olympics.

Brisbane's median house price of $678,000 is less than half of Sydney's and on par with that for Adelaide and Hobart. But don't expect it to stay that way.

By the time the 2032 Olympic Games come to town, the figure is likely to be $1.5 million.

The key driver, says veteran Brisbane estate agent Col Kelaart, is the huge sums of money being poured into planned capital works in preparation for the world's premier sporting event.

"The central infrastructure will be around Brisbane but South East Queensland will actually host the Games so places like Toowoomba, Redland Bay and further south are also areas that will benefit," he said.

"In terms of facilities, the epicentre will be the Gabba and although it's already an iconic venue, its lack of modern facilities has been questioned and so it will likely be upgraded to a state-of-the-art stadium.

"In terms of getting in and out, there's a cross-river rail project underway which basically stops just outside the Gabba and will largely eliminate having to drive into the Woolloongabba centre.

"Some of the other major transport projects, say between Brisbane and the Sunshine Coast, now also have a definite timeline for completion."

Among them is Brisbane City Council's $1.2 billion Metro busway, featuring new tunnels, stations and a fleet of 60 electric vehicles.

Mr Kelaart expects solid property price growth until about 2028 after which the market will overheat towards the Games and for 12 months or so beyond.

Although current listings are down due to COVID-19, Mr Kelaart, who works for Australia's largest fixed-price agent, Upside Realty, said potential buyers are already queuing up, largely due to interstate migration.

With a population of roughly 3.7 million, Queensland's southeast is Australia's fastest-growing zone. Forecasts suggest it will top five million by the middle of the next decade.

Australian Bureau of Statistics data shows Brisbane added 4800 people from other states in the three months to December with Sydney and Melbourne losing residents at almost twice that rate.

While Queensland's climate and thus-far less-troubled COVID run have no doubt contributed to the influx, Mr Kelaart said the other major factor is affordability.

Brisbane's median house price sits a tad under $700,000 but some economists tip the figure will more than double by the time the Games roll around.

"For now at least, if you're coming from another capital city to buy in Brisbane, you'll have plenty of change left in your pocket," Mr Kelaart said.

"But the figures will almost certainly double by 2032, especially in key infrastructure suburbs."

At the top of the tree is Hamilton, where the Olympic village will be built and the median house price is already about $1.6 million. It's likely to jump to more than $3 million within a decade.

Real estate in Tennyson, where the Games' tennis tournament will be staged, is expected to rocket from $970,000 to about $2 million.

Chandler, which will host the gymnastics, is forecast to soar from $1.6 million to $3 million, while Woolloongabba will probably reach $2 million from a current median of $950,000.

Australian Associated Press