Queensland officials are finalising plans for the $4.5 billion Brisbane 2032 Olympic Games as the hunt for stadiums, venues and infrastructure funding continues.
The International Olympic Committee selected Queensland’s capital as the targeted host for the games bringing “stability” as the committee moves towards a cost neutral event.
The site of the opening ceremony is yet to be finalised with the top picks Metricon Stadium on the Gold Coast, Suncorp Stadium in Brisbane or a completely new venue on the cards.
During bidding, a masterplan was developed with two athlete villages, an 80,000 seat stadium and a second M1 Motorway with final locations to be determined.
The majority of the sports will be held in existing venues with the exception of rowing which requires a new base.
Instead, funding for Brisbane 2032 Olympics will be focused on bringing infrastructure projects forward, which will have a knock-on effect for the property market.
Premier Annastacia Palaszczuk said they already have 85 per cent of the venues for the event.
“It’s a new norm, which means it is a game changer, we don’t have to build huge stadiums that are not going to be used in the future,” Palaczszuk said.
“There is an option of one new big venue in terms of the opening ceremony but we may use Carrara as well, we’ve got to go down to the fine print and make sure we’ve got all the funding lined up.
“We want to include the regions as well, so of course with the football we’ve been looking at the soccer matches up around the different regions and of course all of the state will share in an Olympic glory.”
Lord mayor Adrian Schrinner said this is the best opportunity the state has had in generations.
“Now we need to actually go through and make sure we lock in the plans for improved infrastructure,” Schrinner said.
Queensland is already on the cusp of an economic boom with domestic migration reaching double digits and house prices hitting a record high in January.
Developers back Brisbane 2032 Olympics
Brisbane’s bid for the games dates back to 2015 and some of the state’s biggest property developers have pledged their support.
Consolidated Properties Group chief executive Don O’Rorke said the latest announcement will further build confidence in the property market for both Australians and people overseas.
“There’s going to be an intangible excitement that builds over the next decade,” O’Rorke said.
“Covid has shown Australia is a great place relative to the rest of the world.
“When it comes to the more tangible aspects, there will be construction jobs created doing the build [of Olympics-related assets] and that will be over five to six years.
“The spotlight will be put on Queensland, and you only have to look at Sydney to know what that does.
“We need to ensure the responsible deployment of capital so that stadiums [and other assets] can be used afterwards…and southeast Queensland will become known worldwide as a destination.”
Property Council of Australia executive director Chris Mountford said done right, the Olympics will turbocharge investment in the region.
“Along with facilitating investment in catalytic infrastructure, hosting the Olympics will showcase our region to the world, and inspire confidence in the private sector to invest alongside government,” Mountford said.
“Queensland is already well-placed to capitalize on its success in its handling of the pandemic, and the Olympic spotlight will only accelerate the growth trajectory of the region.”
Brisbane Airport Corporation chief executive Gert-Jan de Graff, Aria Property Group founder Tim Forrester, Hutchinson Builders chairman Scott Hutchinson as well as sporting figures Darren Lockyer, Ian Healy and Duncan Armstrong are behind the push for a Brisbane Olympic games.
Olympic funding strategy shifts
Australian Olympic Committee president John Coates said the IOC do not want countries to go out and spend big money so the three levels of government need to focus elsewhere.
“They’ve got to get in one [mindset] in terms of the funding not for the games but the funding, that this region requires to host the games…the future infrastructure, transport, in particular rail and road,” Coates said.
“The IOC is on a budget of circa $4.5 billion, the IOC puts in $2.5 billion give or take the exchange rate…then you get $1 billion from national sponsorship and $1 billion from ticketing.
“They don’t want to have big costly losses for many cities, you know go back to Melbourne and Sydney, we spent $30 million on those.”
IOC president Thomas Bach said the decision to pick Brisbane aligns with their new agenda for 2020 onwards, as a result of the pandemic.
“It proposes sustainable games in line with the region’s long-term strategy and using primarily existing and temporary venues,” Bach said.
“The commitment of Australia and Oceania to Olympic sports has grown remarkably since the fantastic Olympic Games Sydney 2000.”
Although the city is the only candidate now being considered for the 2032 games there are still a few minor hurdles to jump through before it is set in stone
Article Source: theurbandeveloper.com
The Gabba Games – State’s $1b plan to turn stadium into sporting Mecca for 2032
The Palaszczuk government will push ahead with a redevelopment of The Gabba as the centrepiece of its 2032 Olympic Games bid, but it still needs support and a whole lot of money.
The government has rejected lacklustre greenfield sites near Bowen Hills and instead gone across the river to Queensland’s major AFL and cricket venue at Woolloongabba. If the plan goes ahead, and Queensland secures the games, The Gabba will become a building site for five years while an Olympic-class stadium is built.
The Gabba is normally used around 40 weeks in every year. Taking it out of action will require negotiation with a neighbouring school, the Brisbane Lions and Queensland Bulls, along with the Queensland Cricketers’ Club, which has previously been a stumbling block to work on the stadium. It is yet to be seen whether losing a home ground, and maximum revenue for five years, is worth having a larger, modern venue to return to.
While the International Olympic Committee favours using existing venues, thereby reducing the cost to host cities, Palaszczuk is intent on asking the Commonwealth to help fund a complete rebuild. There is no funding agreement yet, let alone architectural plans, but Palaszczuk suggested the new stadium could cost $1 billion.
Palaszczuk said another 8,000 seats could be added to The Gabba, taking its capacity to 50,000, serviced by the nearby Cross River Rail station currently under construction. It would be higher than the existing stadium, to allow for pedestrian overpasses across nearby roads to funnel patrons directly into the new venue.
That would give The Gabba more seats than the old QE2 stadium, which currently has capacity of 48,500, but fewer seats than Suncorp Stadium (52,500). It would have better transport connections than the Nathan venue and in the circular format that suits athletic events and the Olympic opening and closing ceremonies.
“The Gabba has been home to our sport since 1895,” Palaszczuk said.
“A home for the 2032 Olympic Paralympic Games could be its crowning glory.”
“We’ve hosted the AFL here, we’ve hosted cricket here, but for the Olympics, this is front and centre – opening and closing ceremonies, athletics, you name it, it’s going to be the best,” she told Nine’s Today program.
Palaszczuk told parliament a key factor in deciding to use The Gabba was being able to utilise the adjacent Cross River Rail station. She noted the rail project was being delivered with “not one dollar from the Commonwealth” but her office was not in a position to clarify whether the $1 billion would include any rail station components.
The Gabba was built in 1895 and has undergone two substantial renovations and refurbishments since 1993.
The last major redevelopment was completed in 2005 when a 24-bay grandstand built for $128 million.
The Gabba’s public, corporate and media facilities also received a $35 million upgrade in 2020.
The Labor government will seek financial support from Brisbane City Council and the federal government for the project.
“We do need this, and it’s going to be utilised for the future, so they don’t want white elephants they want workhorses, and The Gabba is definitely a workhorse,” Palaszczuk said.
The International Olympics Committee named Brisbane as its preferred host city in February.
But a final decision rests on detailed discussions with Games chiefs and key commitments from the federal government.
Australian Olympics Committee president John Coates addressed cabinet on Monday, where MPs formally endorsed Brisbane’s candidacy.
“This is still contingent on guarantees that need to be received from the federal government,” Palaszczuk stressed on Monday.
She has had a discussion with Prime Minister Scott Morrison and more talks will occur in the coming weeks.
“We are basically doing years and months of work in a very short time frame to meet the deadlines the IOC has set us,” she said.
The state needed the boost the games would bring, including 130,000 jobs.
“It gives us hope, after going through the pandemic. It gives us hope for the future,” the premier said.
Morrison is expected to have more to say on Queensland’s Olympic plans on Tuesday.
Last month, he told the IOC the Australian government was firmly behind Brisbane to host the games.
But Brisbane is not without rivals.
Earlier this month, South Korea said Seoul had submitted a proposal to host the 2032 games, despite Brisbane’s frontrunner status.
Article Source: inqld.com.au
Irongate Group Acquires Two Brisbane Industrial Properties
Irongate Group (ASX: IAP; JSE: IAP) has entered into agreements to acquire:
- an industrial facility located at 57 – 83 Mudgee Street, Kingston QLD (Kingston Property); and
- an industrial facility to be constructed at Lot 24, Dunhill Crescent, Morningside QLD (Morningside Property).
Both properties are being acquired on a fund through basis. The purchase price of the Kingston Property is $14,320,000 representing an initial yield of 5.73%, and the purchase price of the Morningside Property is $5,932,000 representing an initial yield of 6.02%.
Commenting on the acquisitions, IAP CEO, Graeme Katz, said, “the Kingston Property will comprise two brand new, high quality generic warehouse and distribution facilities with 2,270m² leased to Construction Sciences for 10 years with fixed annual escalations of 2.5% and 3,250m² leased to Wako Kwikform for 8 years with fixed annual escalations of 3.0%. The Morningside Property comprises 1,016m² of space that will be leased to 3M Australia to be used as its Queensland head office and last mile distribution facility. The lease term is 10 years with fixed annual escalations of 3.0%.
Both acquisitions are due to complete in mid-May 2021.
Article Source: finance.yahoo.com
Brisbane Housing Market Insights: April 2021
The Urban Developer’s Brisbane housing market insights for March reveals increased demand for houses has been underpinned by increasing consumer sentiment and a surge in interstate migration.
This resource, to be updated monthly, will collate and examine the economic levers pushing and pulling Brisbane’s housing market.
Combining market research, rolling indices and expert market opinion, this evolving hub will act as a pulse check for those wanting to take a closer look at the movements across the market.
Brisbane house prices have soared to record heights after a steady 12 months of growth and a rebound in listings and sales during recent months.
Brisbane’s housing market has remained particularly unaltered by the closure of international borders, where historically high demand from overseas migrants has been disrupted.
Brisbane advanced a further 2.4 per cent during March, pushing it up 4.8 per cent for the recent quarter and 6.8 per cent for the year to date.
The current median value for dwellings is $548,260, which is $12,642 higher than just a month ago.
The median house price of $607,969 continues to attract interstate migrants from the larger markets of Sydney, where the median is now $1.1m, and Melbourne at $859,097.
The premium end of the Brisbane’s housing market is still leading the acceleration in capital gains with upper-quartile property values rising by 3.1 per cent. Lower quartile property values were up 1.1 per cent throughout March.
Brisbane median house and unit price values
^Source: Corelogic Hedonic Home Value Index – March
CoreLogic’s weekly auction clearance rate across the combined capitals has been at or above 80 per cent just five times since 2008, and four of those were in March, 2021.
The week ending March 7, recorded Brisbane’s highest auction clearance rate on record—82.3 per cent—while also being the busiest week for auctions since late March, 2018.
Total listings across the country remain 26 per cent below the five-year average.
Brisbane auction clearance rates
|Week||Clearance rate||Total Auctions|
|Week ending 7 March 2021||82.3%||107|
|Week ending 14 March 2021||65.2%||110|
|Week ending 21 March 2021||73.0%||151|
|Week ending 28 March 2021||68.8%||191|
^Source: Corelogic Auction Clearance Rates – March
Gross rental yields in Brisbane remains favourable compared to Sydney and Melbourne at 4.3 per cent.
According to the SQM, Brisbane’s gross rental yield for houses is currently 4 per cent and 5.2 per cent for units.
Vacancy rates are where your jaw may drop, with Brisbane at just 1.5 per cent, and other locations below 1 per cent.
Traditionally Brisbane’s vacancy rates have been tight, hovering well below the level of 2.5 per cent, which represents a balanced rental market.
Brisbane residential rental vacancy rate
|City||March 2021 vacancy rate||Monthly % change|
Rental stock on market
|City||March 2021 vacancies||Vacancy net loss|
^Source: SQM Research – March
Brisbane rent prices
|Type||Rent||Monthly % change||Annual % change|
^Source: SQM Research – March
The seasonally adjusted estimate for total dwelling units approved in Queensland in February was 3,930, 40.5 per cent higher than recorded in January.
Loan data shows investors have started coming back into a housing market they had largely vacated and the boom is being driven overwhelmingly by established owner occupiers and first home buyers.
Queensland building approvals
^Australian Bureau of Statistics, (Suspension of trend series between May 2020 and Jul 2020 due to Covid-19)
|Dwelling||Approved||Monthly % change|
^Source: Australian Bureau of Statistics; Reference period February
Queensland home loan lending indicators
|Region||First home buyer loan commitments||First home buyer ratio – dwellings||First home buyer ratio – housing|
|Queensland||3078▲ ▼||39.6%▼||34.7% ▼|
^Source: Australian Bureau of Statistics – February
Queensland interstate migration
|Region||September (quarter) 2020 arrivals||September (quarter) 2020 departures||September 2020 quarter net|
^Source: Australian Bureau of Statistics – September quarter 2020
Brisbane’s housing market: policy updates
Australia’s central bank will maintain low interest rates to support the country’s ongoing economic recovery and surging housing market, buoyed by its busiest Easter auction market on record.
Strong tailwinds will bolster the Australian economy through the second half of the year, but macro-prudential measures are likely to be introduced to ease house price pressures in 2022.
Queensland faces a “hard road” during the next four years as the state recovers from the coronavirus pandemic, Treasurer Cameron Dick says.
Brisbane housing market forecasts
ANZ economists forecast Brisbane house prices will rise by 9.5 per cent next year, as low interest rates and government stimulus flow through the economy while Commonwealth Bank updated its forecasts, projecting a strong rebound in prices across the second half of 2021.
CBA now expects Brisbane house prices to increase by 16.6 per cent to December 2022 compared to 13.7 per cent in Sydney and 12.4 per cent in Melbourne.
Westpac has also updated its property forecasts, with Brisbane real estate prices tipped to surge 20 per cent between 2022 and 2023.
Article Source: theurbandeveloper.com
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