Brisbane could be on the verge of an extended boom in property prices, with value potentially rising 50 per cent, thanks to the 2032 Olympics and huge interest from foreigners.
That’s the belief of REA Group Chief Executive Officer, Owen Wilson, who spoke at the inaugural Voice of Queensland Property Panel, hosted by Ray White Queensland.
Mr Wilson said he expected property prices in the Queensland capital to outperform the rest of the country, ahead of the Olympics.
“I expect Brisbane will see the highest price appreciation in Australia in the lead up to the Olympics,” Mr Wilson said.
“There has been 45 per cent growth in the last few years, I expect it will be more than 50 per cent price growth in the lead up to the Olympics.”
Mr Wilson said foreigners were a big source of the recent growth in Queensland, as highlighted by an influx of inbound enquiries from India.
“The largest source of immigrants at the moment is Indian high net worth investors who are looking to buy property,” he said.
“Some 10 years ago it was China.
“There is still strong interest from foreigners to buy property in Australia.”
Mr Owen said Brisbane was the place people were looking to buy into.
“If you look at enquiries on listings on realestate.com.au it’s up 20 per cent, which compares to four per cent in total for the country,” he said.
“There’s so much interest in property here.
“Brisbane has been a huge beneficiary of international and internal migration, especially from the southern states.
“The only place that rivals Brisbane for energy right now is Perth.”
Ray White Group Managing Director, Dan White, said the South East Queensland property market had grown at a higher rate than the rest of the country over the last three years.
“Growth in south east Queensland has consistently outperformed all other major urban areas, bar Perth,” Mr White said.
“Brisbane houses have had the highest growth rate in the region of 40 per cent over three years, or 12 per cent annually.
“The last three to four years have seen a change in a relatively long standing historical trend – SEQ growth previously tracked with or underperformed the rest of Australia, it’s now growing at a dramatically higher rate.”
Consolidated Properties Group Managing Director, Don O’Rorke, said rising construction costs had helped drive up the value of established homes in Brisbane.
“It’s been a really interesting five to six years, things were going smoothly pre-pandemic, but then the journey through pandemic left us with inflation and inflation has pushed the cost of construction,” Mr O’Rorke said.
“As a developer, we can’t produce a two bedroom apartment for under the $1.2 million price point.
“The replacement cost discount is a really big factor.”
He said if you take away government intervention, the middle and lower markets just won’t get built.
“The only way we’re going to afford new homes for families on an average wage is house and land,” Mr O’Rorke said.
Real Estate Institute of Queensland (REIQ), CEO, Antonia Mercorella, said the announcement of the Olympic Games put the city’s growth on steroids and it was hard to see how that would not continue.
“(It’s the) most exciting city in the country, especially since the announcement of the Olympics,” Ms Mercorella said.
“Real excitement and positive energy.
“We need to use it and bottle it.”
