South-East Queensland can expect a spike in residential and commercial lending volumes off the back of Brisbane securing the 2032 Olympics, a brokerage has said.
Brisbane-based Loan Market mortgage broker Mick O’Shea reported that in the first week following the city winning the Olympics bid, he already had seen a boost in enquiries.
“The games have been a real talking point this last week,” Mr O’Shea said.
“The announcement has come on the back of a real rush in activity already. We’ve seen a lot of people wanting to relocate to Brisbane from the pandemic, while locals have been looking to upgrade, as they’re spending more time at home.”
The Olympic games are expected to inject $8.1 billion into the region, according to a KPMG estimate.
Mr O’Shea has anticipated that the buzz will continue to produce a busy period of borrower activity for the next 36 months, alongside the Reserve Bank of Australia’s forecast that the cash rate will remain at its current low until 2024.
“We’re amid a strong period of borrower activity currently, and the announcement of the games will extend that sentiment,” Mr O’Shea said.
“Expo ‘88 had a transformative effect on Brisbane, taking it from a country town to a city that was on the world stage. With the Olympics and Paralympics, Brisbane will now be mentioned alongside other global cities like LA, Tokyo and Barcelona, and that will have a lasting impact on the growth of the city.”
Queensland had the highest rate of interstate migration of any state at the end of 2020, with a net influx of 30,018 residents, according to the Australian Bureau of Statistics (ABS).
Analysis from Loan Market affiliate Ray White also found that the number of Brisbane suburbs with a median price above $1 million has grown by a third over the past 12 months.
According to Loan Market, its lodgements were 56 per cent higher in the first half of the year, compared with the same period in 2020.
Mr O’Shea added that the state has been especially popular for first home buyers moving interstate.
“Brisbane’s housing is more affordable than Sydney and Melbourne, and corporations are far more open-minded about working from home,” Mr O’Shea said.
Business finance is also tipped to benefit from the Olympics, with Daniel Green, head broker at Green Finance Group, commenting sole traders through to global firms will be vying for on-track and off-track projects involved with the event.
“Over the next decade, businesses will seek out operational and capital finance to position themselves to compete for tenders and the delivery of projects that will support the success of the games: equipment for the delivery of road upgrades, public works, IT and data security and so much more,” Mr Green said.
“Beyond the games, the infrastructure that helps deliver the event will create efficiencies in transport and logistics, and encourage a new wave of hospitality and accommodation operators.
“It will encourage a massive introduction of new developments, amplifying the tourism appeal of South-East Queensland.”