Is buying an investment property for the Brisbane Olympics smart?
With the Brisbane 2032 Olympics on the horizon, many investors are wondering if now is the time to buy property and leverage the influx of visitors expected for the event. Short-term rentals, like those on Airbnb, are particularly appealing for high yields during the Olympics—but is this a good long-term investment strategy? Here, we explore the pros and cons of investing in Brisbane property ahead of the Olympics, the expected impacts on property values, and key areas likely to benefit most.
Why buy now?
The years leading up to the Olympics often bring rising property values to host cities, driven by several key factors:
1. Tourism surge: The Brisbane Olympics is expected to attract millions of visitors, many of whom will seek alternatives to traditional hotels. Short-term rentals may become especially lucrative during this period, potentially offering investors significantly higher yields.
2. Infrastructure development: Major investments in Brisbane’s infrastructure, such as new transport links and upgraded roads, are underway. Properties near these improvements may see substantial value growth, as enhanced accessibility tends to increase long-term demand.
3. Early market entry: Buying now allows you to enter the market before prices surge further as the Games approach and demand heightens.
While these factors make the short-term outlook favourable, investors should also consider what may happen post-Olympics.
What happens to property values after the Olympics?
Host cities can sometimes experience a ‘cooling-off’ period where property prices stabilise or drop after the Games. However, Brisbane’s growth trajectory may counter this trend due to:
1. Population growth: As one of Australia’s fastest-growing cities, Brisbane’s affordable housing market (compared to Sydney and Melbourne) is attracting new residents, a trend likely to sustain property values beyond 2032.
2. Long-term tourism appeal: The global exposure from hosting the Olympics will likely boost Brisbane’s appeal as a tourism destination, meaning properties in tourist-friendly areas could remain in demand for short-term rentals well beyond the Games.
3. Permanent infrastructure upgrades: Unlike temporary venues, much of the infrastructure being developed will serve the community long-term. Enhanced public transport, roads, and amenities could continue to attract property demand post-Olympics.
4. Economic growth: The Olympics’ economic benefits will likely impact more than tourism, with local businesses, job markets, and broader economic growth potentially supporting sustained housing demand across the city.
Risks of post-Olympic declines
Despite these advantages, there are risks to consider:
1. Overdevelopment: If too many properties are built for the Games, the market could face oversupply, leading to stagnant or declining prices afterward.
2. Cooling of short-term rental demand: While Airbnb demand will likely peak during the Olympics, it could taper off afterward. Assess whether the property would attract long-term tenants or vacationers post-2032.
3. Economic uncertainty: Broader economic factors, like interest rates or global markets, could impact property prices, especially in the years following the Olympics.
Where to buy?
Location is key to maximising your investment’s long-term value. Here are some of the most promising areas in Brisbane:
1. Brisbane CBD and South Bank: The heart of Olympic activity, with main venues nearby. South Bank’s riverfront location and attractions make it appealing for both short- and long-term rentals.
2. Woolloongabba: Home to The Gabba stadium, Woolloongabba is set for transport upgrades and other developments, making it a prime location for Olympic-linked investment.
3. Fortitude Valley: Known for its nightlife and cultural vibe, Fortitude Valley’s proximity to Olympic venues and ongoing popularity with tourists makes it a strong choice for rentals.
4. Hamilton and Ascot: These affluent suburbs benefit from planned infrastructure improvements and are ideal for high-end rentals. Expect potential capital growth leading up to and after the Olympics.
5. Chermside: Located north of the city, Chermside offers relatively affordable properties with good transport links and access to Olympic venues, along with steady foot traffic from Brisbane’s largest shopping centre.
6. Gold Coast and Sunshine Coast: Both areas may benefit from the Olympics’ visitor overflow, especially with improved transport links. These coastal areas are already popular tourist destinations, which bodes well for Airbnb demand post-Games.
Conclusion: Is it worth it?
Investing in Brisbane property ahead of the 2032 Olympics could be lucrative, particularly for those eyeing the short-term rental market. However, the long-term success of your investment will rely on careful location selection and awareness of post-Olympic demand trends. Focus on areas with infrastructure upgrades and ongoing housing demand, and your investment is more likely to hold value well beyond 2032.
Disclaimer: The information provided in this article is intended solely for general informational purposes and should not be construed as advice to purchase property. We recommend conducting thorough research and seeking professional advice before making any property purchasing decisions.
References:
- Brisbane 2032 Olympic and Paralympic Games Master Plan – Brisbane City Council. Available at: https://www.brisbane.qld.gov.au
- Australia Bureau of Statistics (2024). Population Growth in Brisbane. Available at: https://www.abs.gov.au
- Liu, Z., Li, Y., & Pyper, R. (2023). The Economic Impact of Major Sporting Events on Host Cities. Journal of Urban Economics, 45(3), 120-135.
- Real Estate Institute of Queensland (2023). Brisbane Property Market Outlook. Available at: https://www.reiq.com
- Airbnb (2023). Short-Term Rental Trends in Brisbane Leading to the Olympics. Available at: https://www.airbnb.com.au
- Infrastructure Australia (2024). Brisbane Infrastructure Projects and Development Updates. Available at: https://www.infrastructureaustralia.gov.au
- McLennan, C. (2023). Will the Brisbane Olympics Boost Property Prices? A Comparative Look at Past Host Cities. Property Investment Journal, 33(1), 12-19.
