Darwon's Theory | The Host gets the Most

There’s been another Olympics cash splash and, if history is anything to go by, Brisbane property owners stand to benefit. $504.6 million has been allocated to the games as part of the Federal Budget, following a 10-year $7 billion joint funding deal between the Federal and Queensland government. Here’s what it could do for the city, and for the value of your home.?

Firstly, hosting the Olympics puts a city on a global platform. In the past, this has resulted in increased interest in host cities from property investors and buyers from around the world, as well as from locals who may have previously overlooked the city. Secondly, the significant infrastructure and development projects that form part of the Olympics planning often enhance the desirability and value of local property. In the lead-up to the games, host cities typically invest in new transport links, venues, and other facilities, which improve connectivity and quality of life for residents. And thirdly, hosting the Olympics can, of course, lead to a boost in the local economy, as an influx of visitors and investment create new job opportunities and stimulate growth in local businesses.?

All in all, hosting the Olympics can increase the livability of a host city and cause property values to grow, thanks to an increase in demand. Need some facts and figures to back up the statement? There are plenty!

Take the 2000 Sydney Olympics, for example. According to CoreLogic, property prices increased by an average of 72 per cent between 2000 and 2010, outpacing the national average of 57 per cent. One factor that contributed to this growth was the surge in demand from both local and international buyers after the games.?

We can see the pattern continue in Athens. Prior to the 2004 Olympics, the city invested in new infrastructure projects, including the construction of a new airport, a metro system, and a tram network. According to a report by Eurobank Property Services, property prices increased by an average of 28% between 2003 and 2005, driven in part by the influx of investment and tourism associated with the games.?

The 2008 Olympics in Beijing, China, had a significant impact on the local real estate market also, with property prices increasing rapidly in the years leading up to the games. According to data from China Index Academy, property prices increased by an average of 17.8% per year between 2005 and 2008. After the games, prices continued to rise, albeit at a slower pace; 7.8 per cent per year between 2009 and 2013, as the city continued to benefit from the infrastructure upgrades and increased global exposure associated with the Olympics.

Similarly, following the 2012 Olympics in London, property prices rose by an average of 25 per cent over the following five years, according to data from Zoopla.

While the Olympics are still a little while away, the growth potential for the value of Brisbane property is clear. Invest now, and you’ll stand to benefit from multiple years of increased buyer and investor interest.?

Cheers,

S.D.