The PROPERTY DOCTORS, Sydney Australia Novak Properties
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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1279 OLYMPICS FEVER: GOOD OR BAD FOR PROPERTY VALUES
Ever wondered how hosting the Olympics could skyrocket property prices in your city? Tune in to our latest episode where we unravel the profound impact of the global spectacle on real estate values. From the unforgettable moments of the recent Olympics to the sheer magnitude of its global audience, we delve into how such exposure fosters positive sentiment and fuels property market growth. By reflecting on the Sydney 2000 Olympics, we illustrate how massive investments in infrastructure, transport, and commercial spaces can lead to long-lasting benefits for property markets. We also cast our eyes toward the Brisbane 2032 Olympics, discussing the early preparations underway and the anticipated property market boom.
But that's not all. We tackle Sydney's persistent challenge of limited housing supply and its direct influence on capital growth. Discover why Sydney's strict planning controls have historically driven significant property value appreciation, in stark contrast to the oversupply issues seen in other states. We deep-dive into the crucial role city planning plays in shaping property market dynamics and leave you with a powerful quote for 2024: "Supply is the enemy of capital growth." Whether you're a property investor or just curious about real estate trends, this episode promises insightful revelations you won't want to miss.
Olympics fever with property Good, bad, ugly, fantastic. We're going to measure some of the last Olympics that have happened and how that's affected property prices and bring it to you. Stay tuned, I'm the ringleader. Boom, olympics is finished.
Speaker 2:What was your favourite Olympic moment?
Speaker 1:My favourite Olympic moment Was the women's weightlifting over 84 kilograms interesting, very interesting it was like it was just. I was in shock and all the whole time what was yours, I didn't.
Speaker 2:I didn't watch much of it, probably just the athletics watching the world records get broke. I always find that fascinating.
Speaker 1:Yeah, right, yeah, world records it staggers me. So many can be broken. But I saw a metric half of the world's population have watched the Olympics in some way shape or form and that is a lot, a lot, a lot of exposure for, uh, for for anything. Um, what's that? Four billion? Four billion, yeah. Um, you know people staring at it. But the closing ceremony, I watched it, I went back on. It went for four hours. I went, I had to fast forward a fair bit, but I went back on it. It's going to be in california. Then, uh, four years later, it's going to be in brisbane. Um, it was. It was a long show, but some pretty cool pieces out of it. What a, what a whirlwind. What a production. What a production. How does that affect property prices?
Speaker 2:one must wonder well, you know what it does. It's got people's attention. That is the most powerful thing. You know whether it's property, whether it's uh, any anything, it's got people's attention and I guess, if you can stick someone on a couch for four hours and fly around, you know different parts of paris and different parts of France and you know, show your beautiful country. You know you're setting yourself up for a beautiful tour.
Speaker 1:It did look beautiful, like. Seeing those skies, the landscapes, the buildings in Paris, I was like, yeah, cool, it's a positive aftermath for something, and something that you and I were having a bit of a chat about, billy, was that? Um, I think it comes down to sentiment. Um, a big metric in property that's an a impossible measure is sentiment. It's probably the biggest measure if you can uh, if you get a feel on it. But how people feel um about a place, a country, um, if they are scared, they run. If they are inspired, they are attracted. Um, I think we uh, as part of the information we put together today, we looked at 2000, when sydney had the olympics. Um, the, the aftermath in the property market and the, the prior, you know, in the property market. But if you, but if you think about it, it's sort of like eight years before that these countries start prepping and probably start benefiting from the Olympics coming. So what did you say? They'd spent in France for the Olympics $8.3 billion US dollars.
Speaker 2:Yeah, it's not a US dollars. Yeah, it's not a cheap setup no US dollars. That's why I refreshed the screen for a sec there. You lost me. If I go back I'll do the same. But these guys were upgrading transport links. They were upgrading commercial retail, residential shopping spaces and things like that Security, security, transport links. They were upgrading commercial retail, you know residential, you know shopping spaces and things like that. Security security. Uh, you know transport health. Everything has got to be sort of uplifted when it comes to big games like that and, you know, not all of it gets taken home either. Right, a lot of people benefit from that years on down the track as well. You look at sydney as an example. You've got beautiful stadiums off the back of it 20 years later yeah, yeah, we're still enjoying our venues more than ever you know you could.
Speaker 2:You could say it was just coincidence that property values doubled in in the in the before to the after, or you could say no, it was, you know, there was contributing factor. And so in the build-up to the late 90s property values were sitting about 220 to 300 median house price and then on the back of the Olympics it was sitting between 500 and 600,000. Late 2000, 2003. Yeah, so that's pretty good for it.
Speaker 1:You can't say it's not somewhat related.
Speaker 2:It's got to be, whether it's just all the infrastructure or whether it's people moving saying I really enjoyed that, I want to be there. Yeah, it's got to be.
Speaker 1:So it's a big yes from us.
Speaker 2:Yeah, it's gotta be. And are you hearing people talk about Brisbane 2032?
Speaker 1:yeah, yeah, so it's, it's a long time away and people are excited about it. People, um, you know things have started in brisbane, you know, to get to get the infrastructure in tune and ready for, uh, an onslaught of people and and, and, and and. You know, the olymp it only goes for a couple of weeks, I get that, but it's a hell of a lot of people coming in. I think when you have that positive Well, when you have exposure number one, never mind the experience, the exposure, a lot of people around the world like Sydney, and then now they're going to Brisbane and they're researching and they're coming out. So I think when the Olympics is approaching and when it's gone, it's on the map. It's on the map. If you put someone on television for five seconds, everyone knows that person. So I think that, as an Olympic, everyone's going to know the state and the city well, um, they're going to feel comfortable with it, they're going to have a positive afferment with it, um, and I think the property value is going to do. Well, you know, would I personally, would I take my money as a Sydney person and say, on the back of the Olympics, I'm going to put my money into Brizzy, um, hand on my heart and I don't like to say it, but probably not.
Speaker 1:I believe your investments, one you know. There's the performance side of things too. There's that familiarity side of things where you're doing repairs, maintenance, rentals. You know buying, selling, buying. Another one valuations. There's a I like. I like buying under my nose, to be honest. What about you?
Speaker 2:well, if you're asking me, would I buy in paris because they've just had an olympics from 2017. Their prices have done 22, which sounds good. But you take like a northern beaches average and you split it over six, six, seven years. It's, you know, it's. It's seven years. It's maybe consistent, but it's slow by Beecher's standards. Look, I think if you were ever going to plan a move up to Brisbane and you wanted something that was going to have a lot of things going on around it, yet timing-wise it's great, isn't it? You might be making a 10-year retirement plan and going. Brisbane's not bad compared to Perth, because they're just another tick, yeah, just another tip. But do your bank on it? Yeah, not sure doesn't change interesting.
Speaker 1:So I think, from what we're saying today, it's a winner property wise. I'm surprised to hear the differences between the Sydney Olympics property growth and the Paris. We're not all the way through that property growth, by the way. So say, paris got 22% and it'll go to 50% if it takes that same rate of flow. I think it's good. I think it's good. But you know equally our expectation, our expectation. You know the last 50, 100 years um in sydney's the property values will double every every um seven to ten years. That's been when you take an average and a yardstick. That's been the average um. You know. I think that, yeah, it's. It's not not a bad, not a bad thing to do, not a bad thing to do, not a bad thing to do at all Anything else. You want to report on Olympics fever good or bad for property?
Speaker 2:values. The people are saying there is an Olympic effect. The Olympic effect is a real thing. Yeah, agree, agree. I agree, the facts are there.
Speaker 1:I agree. Facts, the facts are there, I agree. And look as real estate agents witnessing and I, you know, I worked through. I was in real estate and worked through the property market in 2000 for Sydney. Um, real fact, good, um. But would I change my appetite from Sydney to a different Olympic state, something like Brisbane on the back of an Olympics? Probably not, probably not. But I think the infrastructure that's left behind is quite phenomenal. But we do have that legacy structure in sydney anyway. Do you know what I mean? Like we've got pretty much that blueprint for an olympic city. We've, we've achieved um, so I think we're getting the benefits from that.
Speaker 2:Um, still, just remember supply is the enemy of capital growth can you say that three times in a? Row. I'll say it one more time for you, supply is the enemy of capital growth. Just remember that wherever you, you know, wherever you look, there might be a beautiful big train station or a stadium or an athletics park or a swimming pool going in. But if there can be multiple influxes of new stock, it will always slow your capital growth no matter what.
Speaker 1:So you've still got to look at that measure. I do have to say Sydney's supply has always been a shocker. That has always contributed to capital growth, always, um, and I do. I am surprised with other states the amount of oversupply or supply, or lots of supply, they get, and it goes back to the planning controls of the city. Um, sydney net doesn't like to loosen up those planning controls so, um, I think on the back of that there we're going to go out on that one billy for for 2024 quote of the year what is it again?
Speaker 2:supply is the enemy of capital growth. Have a great day. Happy tuesday, love it, see ya, bye.