Property research | 5 minutes
South East Queensland | The Effortless Advantage
Michael Zaghini
03/02/22
South East Queensland, and more specifically Brisbane, the Sunshine Coast and Gold Coast, currently provide some of Australia's most robust opportunities for property investors seeking to capitalise on what is known as the "effortless advantage."
Economists and property investors often refer to capturing “value uplift” or leveraging the “effortless advantage”. In simple terms, this refers to the proven “value” increase that properties naturally experience in areas where there is public and private investment in improving local infrastructure and amenities.
Identifying these areas and subsequently capitalising on such opportunities is called “effortless” because property owners in these locations are the greatest beneficiaries of the flow-on value uplift created by this investment.
South East Queensland, and more specifically Brisbane, the Sunshine Coast and Gold Coast, currently provides the most robust opportunities nationally for investors to maximise the “effortless advantage.”
SEQ is currently in the midst of a once-in-a-generation infrastructure boom, with a pipeline of game-changing projects with a total value exceeding $75billion.
In addition, SEQ’s “City Deal” has been finalised with the Federal Government and is estimated to be worth $58billion to the local economy.
At the same time, Brisbane’s securing of the 2032 Olympics will further boost this pipeline substantially.
Below we have summarised the most significant infrastructure projects either planned or currently underway across South East Queensland.
SEQ’s Major Projects
Brisbane
Woolloongabba Master Plan $1bn
Brisbane Cruise Ship Terminal $158m
Herston Quarter Health Precinct $1.1B
Waterfront Brisbane Masterplan $2.1B
Port of Brisbane – Building Infrastructure $466mn
Ten years Green Bridges Program $294mn
Gold Coast
Second M1/ Coomera Connector $2.4B
Gold Coast Airport Expansion $370M
Gold Coast Light Rail Stage 3 & 4 (Broadbeach- Burleigh Heads- Gold Coast Airport) $2.1B
Spit Masterplan & Cruise Ship Terminal
Sunshine Coast
Sun Central CBD Development Maroochydore $2.1B
Sunshine Coast Airport expansion $350M
Sunshine Coast Mass Transit and Light Rail Project
2032 Olympic Games – Economic Benefits
When analysing the economic impact of the 2000 Olympics, it is significant to note that from the September 1993 announcement that Sydney had secured the event to September 2000, dwelling values jumped by 60%; almost twice the growth recorded across the broader combined capital cities benchmark region, which grew by 34.6% (source: Core Logic)
Brisbane 2032 Olympic Highlights
- The event will run from 23 July to 8 August 2032.
- The Paralympics will run from 24 August to 5 September 2032.
- It will play a vital role in the region’s post-pandemic economic recovery, driving significant employment with several new venues and stadiums.
- The State’s Olympic Task Force estimates the Games could create around 130,000 direct jobs and tens of thousands of indirect jobs, particularly in the tourism sector.
- The International Olympic Committee’s Value Proposition Assessment notes the direct economic benefit to Queensland will be around $7.4 billion, with “social and community benefits” lasting potentially two decades.
- KPMG’s Economic Analysis summary predicts it will deliver $8.1billion in benefits to Queensland, including a $4.6billion economic boost to tourism and trade. On top of that, they expect an estimated $8.5billion in additional Federal Government investment.
With South East Queensland’s urban area population currently sitting at 3.8million, the Australian Bureau of Statistics anticipates a further 2million people will call the region home over the next 20 years. This would bring our total population to near six million people.
Given the already incredibly constrained housing market, it is no wonder South East Queensland property will continue to be an excellent investment for some time to come.
Recent research by PRD Projects indicates the 2032 Olympic Games could help push Brisbane’s median house price to $1.7 million by 2033, with inner suburbs close to event venues reaching an average of $3.9 million.
PRD expects similar uplift for the Gold Coast and Sunshine Coast with equally substantial infrastructure investment and Games facilities spread across the region.
Given CoreLogic recently put Brisbane’s median house price at $731,392, the PRD projection represents an astounding 132% growth over 12 years.
PRD sighted the uplift that previous international events and associated infrastructure improvements appear to have had on residential property prices to support their projection.
World Expo ’88 and the 2014 G20 Summit were significant international events deemed to have “put Brisbane on the map”, helping to pave the way for its evolution into a “world-class city”.
According to PRD, between 1977 and 1989, the 11 years before Expo ’88 and the year after, Brisbane’s median house price grew by 279%.
During this same timeframe, median house prices in the suburbs surrounding Expo ’88’s location grew by an average of 335%.
Although there was a limited time between the Brisbane G20 hosting announcement and the event itself, the Brisbane median house price grew by 6.0% in the year proceeding. In comparison, the suburbs surrounding the event location grew by 10.3%.
Similarly, following the 2000 Sydney Olympics, PRD outlined how Newington (site of the athlete’s villages) and surrounding suburbs saw house prices increase by 66.4% on average in the preceding three years.
The Gold Coast Commonwealth Games provides a more recent supplementary example not touched upon in the PRD research. The announcement in late 2011 that the Gold Coast would host the games coincided with a renewed property growth cycle.
The median Gold Coast house price rose by more than 38% in the six years leading up to the event. During the same period, the suburb of Carrara, which was the main athletics venue and opening/closing ceremonies, experienced housing price growth of 44.5%.
GOLD COAST HOUSE PRICE GROWTH ASSOCIATED WITH THE 2018 COMMONWEALTH GAMES
Source: Pricefinder
Mosaic and the Effortless Advantage
Mosaic’s Research and Strategy team works closely with our Acquisitions team to ensure future project opportunities meet strict criteria, developed in alignment with our key
philosophies, the most critical of which is location.
We take our promise of “Enduring Value” seriously, selecting prime locations throughout South East Queensland that are in close proximity to employment hubs, public
transport, shops, services, amenities, and infrastructure investment.
With an exciting pipeline of projects set to launch in high-demand locations across South East Queensland in 2022 and beyond, click below to register to be among the first to view before public release.