Every few days I seem to hear someone say that the Brisbane Olympics will be an extraordinary event for Queensland property. They may well be right. But before we become carried away by the excitement, it is worth asking a simple question: what did we learn from Sydney’s experience in 2000?
The answer is that the biggest winners were not necessarily the people who bought property closest to the action. Instead, the greatest beneficiaries were those who understood how infrastructure permanently changes the way people live, work and move around a city.
THE “OLYMPIC EFFECT”
Sydney’s Olympic Games transformed Homebush from a largely industrial precinct into the thriving Sydney Olympic Park we know today. New roads, rail connections, telecommunications infrastructure and urban renewal projects reshaped entire neighbourhoods.
Importantly, however, the Olympic Games themselves were not solely responsible for Sydney’s strong property performance. Population growth, lower interest rates, favourable economic conditions and rising international confidence in Australia all played important roles. The so-called “Olympic effect” was certainly real, but perhaps not as powerful as many people expected.
THE LONG TERM
What the Games undoubtedly did achieve was to accelerate investment that may otherwise have taken decades to occur. That is an important distinction. The suburbs that performed strongly were generally those that enjoyed lasting improvements in accessibility, amenity and employment opportunities. Homebush, Rhodes, Newington and Wentworth Point all benefited from this transformation.
At the same time, Sydney also provided a few cautionary lessons. Not every venue proved to be a lasting success. Construction costs exceeded expectations in some areas, and investors who purchased purely on speculation did not always achieve the returns they had anticipated.
LEARNING THE LESSONS
As we look towards Brisbane 2032, the same principles are likely to apply.
The real opportunities may not lie inside the stadiums, but rather in the transport corridors, healthcare precincts, logistics facilities and residential communities that emerge around them.
Investors would be wise to pay close attention to infrastructure spending, demographic shifts and changes in the way people interact with the city.
History suggests that the Olympic Games do not create prosperity by themselves.
Instead, they accelerate change.
And, in property, those who recognise change early often place themselves in the strongest position.
What do you think? Will Brisbane 2032 create the same opportunities that Sydney 2000 delivered, or will this time be different?
Until next time,
Mark Wizel