Brisbane looks all but confirmed to host the Games, after the International Olympic Committee (IOC) endorsed its unopposed bid on Friday, with a formal vote occurring on 21 July.
PRD Research chief economist, Dr Diaswati Mardiasmo, said the Olympics were likely to push property prices up in Brisbane, making it more difficult for people to buy their first home.
"At present, first home buyers are in the best position to enter the market, based on home loan mortgage rates and high government intervention in assisting with home ownership," Dr Mardiasmo told Savings.com.au.
"However first home buyers at present are somewhat 'sheltered' from international investors market, as other countries are still dealing with COVID-19 situations and ensuring their own economic recoveries.
"So, in a way now is potentially the most ideal and affordable time for first home buyers to enter the market, in comparison to if we fast forward the next three to five years, when other economies have recovered and enter Australia again."
Dr Mardiasmo noted the Games were 11 years away and a lot could happen in that time, but pointed to the last time Australia hosted.
"The year after Sydney Olympics 2000 the number of sales in Newington and its surrounding suburbs increased by 58.0%, and median house price increased by 13.4%," she said.
"There is anecdotal evidence from real estate agents that serve the areas around where Sydney Olympics were held, saying that the increase in prices impacted not only Newington but also all metropolitan areas."
Brisbane could see "double digit growth"
Brisbane property prices proved resilient through COVID, largely due to minimal lockdowns and interstate migration from southern states.
According to CoreLogic, the Sunshine State capital has the fourth highest capital city median house price at $641,727, with prices up 9.5% year-to-date.
Dr Mardiasmo said Brisbane was a popular location for its affordability, but this could quickly fade if it hosted the Olympics.
"If Brisbane is a confirmed host of the Olympics in 2032, with lessons learnt from Sydney and how Brisbane prices have travelled over the past 18 months, it wouldn’t be surprising to see a similar trend," she said.
"We might see property demand frenzy the year prior and after the Olympics, giving us double digit growth."
With many events likely to be outsourced to the Gold and Sunshine Coasts, Dr Diaswati said prices would see a similar trajectory in these regions.
"There will be a spill-over effect in terms of demand, with many switched-on buyers looking at different areas within Southeast Queensland if they find Brisbane prices to be unaffordable or out of their budget," she said.
"Sunshine Coast’s median house price is still the most affordable out of the three local government areas at the moment, even though it is catching up, and broke the $700,000 mark for the first time in 2021."
Photo by Kon Karampelas on Unsplash
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