Finance and Coffee
2 months ago · 4 min read
Games to continue growth in SEQ lending
Brisbane and South East Queensland can expect residential and commercial lending volumes to rise further in response to being awarded hosting rights of the 2032 Olympic and Paralympic Games.
The Games are expected to inject $8.1 billion into the region, according to KPMG, and build upon the record low-interest rates to underpin the next wave of new business and personal commitments across the city and Queensland.
Loan Market’s Mick O’Shea said hosting the Games had spurred further enquiry in the first week after winning the 2032 Games.
Queensland has been a beneficiary of remote working in the wake of COVID-19. Queensland recorded the highest rate of interstate migration of any state at the end of 2020, welcoming a net additional 30,018 residents, according to the Australian Bureau of Statistics.
According to analysis completed by Loan Market’s affiliate, real estate network Ray White, the number of Brisbane suburbs with a median price above $1 million has grown by a third over the past 12 months.
Loan Market’s lodgements were 56% higher in the first half of this year compared to the same period in 2020.
“(The Games) have been a real talking point this last week,” said Mr O’Shea.
“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.
“Queensland has been especially popular for First Home Buyers who have moved interstate. Brisbane’s housing is more affordable than Sydney and Melbourne, and corporations are far more open-minded about working from home.”
With the Reserve Bank of Australia suggesting the official cash rate will remain low until 2024, Mr O’Shea anticipated the buzz created by the Olympics would present a busy period of borrower activity for the next 36 months.
“We’re amidst a strong period of borrower activity currently and the announcement of the Games will extend that sentiment,” he 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.”
Daniel Green, Head Broker at Green Finance Group, said sole traders through to global firms would vie for the spectrum of on-track and off-track projects needed to deliver the world’s largest sport event.
“It’s the lead up to, and the legacy of, the Games that will be the game changer for Brisbane and Queensland,” said Mr Green. “It’s so much more than a three-week sports 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.
“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.”