History of How the Olympics Affect Property Prices
The art of predicting property prices can never be a precise model. Looking at history can provide a guage, however there are so many variable that come into play. The best way to model, is to look at as many factors as we can to make the best predictions.
In this case, we will be analysing the affect that Olympics games have of property price predictions. Lets get straight to most insighful graph comparing property price fluctuations from 1984 to 2000, for before and after each of the summer Olympic Games.
This was a research study from Urban Studies which shows maps the property prices minus years to the left, and plus years to the right, relative to the Olympic Games year.
It can be seen that there is no significant common pattern. Only Seoul prices jumped sharply immediately following the event . Los Angeles prices moves up in the long term. The values for all cities increased to varying degrees.
Let look at what some analysts have said:
Mark Geoghegan, the Managing Editor of the Fleet Street Letter’s Platinum Service says “The Olympics benefit poor cities — not rich capitals”, citing that underdeveloped cities like Athens and Barcelona benefited the most due to massive development projects that were undertaken, and more developed cities like Sydney and Atlanta would have increased in price anyway.
On the other hand Jack Wright explains that for London 2012 games, all six Olympic host boroughs increased in value compared to the London and UK average values. This is because these particular areas experienced major redevelopment.
Lets take a quick look at Brisbane. Even though Brisbane hosted the 2018 Commonwealth game, there is a large infrastructure plan for the Brisbane 2032 Olympic games. This includes brand new developments and upgrading existing infrastructure. There is also talk of high speed rail. Based on the above historical impacts, this is likely to help increase property prices in Brisbane.
In a more direct analysis, Search Party Property have detailed 7 key factors in analysing the likely real estate impacts of the Brisbane Olympics. Since south east Queensland is already considered a one of the best places to invest in property, this Olympic annoucement will shine a brighter spotlight on the area, especially if the transport plans being looked go ahead with construction.
In your analysis it is important to consider the following: location, size of the property, suburb population, jobs, amenities, cashflow, interest rates and supply and demand. There is a lot to take into account, and an international event that the world talks about like the Olympics, would be a major factor.
