August 16, 2021

#114: Brisbane Olympics 2032 - is now the time to buy an investment property in Brisbane? Infrastructure upgrades, re-purposed athlete villa

42 minutes

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this episode Dave, Cate and Pete take you through: Weekly market updates 1. Rise of the regions The growth experienced over the last 12 months in our regional cities has taken the nation by storm. But is this driven by an escape from the cities or the prospect of buying bigger homes? There is certainly a correlation between larger housing/land and regional moves, particularly for those regional cities which are within commuting distance to the capital. 2. The experiment in New Zealand Over the last few months we've seen our friends in New Zealand abolish negative gearing, introduce macro prudential measures on loan to value ratios and more recently, there are talks of giving the RBNZ more power to restrict lending based on debt to income ratios. Quarterly value growth has more than halved since April as a result of these measures, rising 4.3% in the three months ending in July, down from 8.9% in the previous quarter. The New Zealand market is a good barometer for where Australia is heading, with unemployment down to 4.0% in NZ and inflation hitting 3.3%. Interest rates are almost certainly going to rise next month. We continue to watch the story unfold in New Zealand with keen interest. Olympic Games' impact on property values 1. Property price performance and major sporting events The trio discuss studies conducted on how major sporting events impact property price performance in host cities. The evidence shows that results are not uniform, and largely depend on the coordination and planning of developments and the scale of total investments. In other words, the development of infrastructure built for the purpose of the event and the longevity and repurposed use post the event. 2. When can you expect an uplift in prices? The Property Professor shares research conducted on the Sydney Olympics, which revealed that host suburbs experienced substantially higher growth during the bidding and pre-Olympic periods, but not after the Olympics were held in 2000. 3. Athlete villages across the world and post-Olympic planning The trio discuss the athlete villages built for London, Rio, Munich, Turin and Tokyo. Athlete accommodation in these cities has been repurposed with varying degrees of success, from selling to private owners, public and refugee housing and student accommodation. The key to understanding whether these dwellings will be a good investment, will largely depend on the post-event plan, execution and desirability. 4. The story of West Heidelberg and Wendouree after the Melbourne 1956 games West Heidelberg is on the fringes of Melbourne's affluent eastern suburbs, yet struggles with considerably higher levels of crime and poverty. Post the Olympic Games, the athletes village was converted to public housing, with 2,000 public housing residents living in the Olympic village today. It continues to be a low socio-economic area, similar to Wendouree West in Ballarat which hosted the rowing events. 5. Longevity of stadiums Nations hosting major sporting events are getting creative with their building of infrastructure, in particular, building temporary structures which will be demolished after use. For the Winter Olympics, South Korea built a temporary stadium which was used 4 times and immediately torn down. A stadium built out of shipping containers is being built for the Qatar 2022 World Cup. If you are going to invest, be sure that the infrastructure that lures you in the first place is going to stay on! 6. Infrastructure upgrades that drive values The trio...

...more