“We are now seeing a golden moment when Brisbane will host the Olympics in 2032, but for housing, it will not be the Olympic period that will have the impact; it will be the years leading up to it,” she said. “Big spending from government and investment in the city will have a flow-on impact on jobs and economic growth and will be another drawcard for interstate movers, particularly in construction.”
She said the stimulus and activity would put pressure on renting and buying, but the outlook was positive for prices; similarly, Sydney had a price increase from 1993, though it in part was post-recession recovery.
“It’s a wake-up call for first-home buyers for understanding that our median house prices have increased so dramatically. They’re stuck in a corner. Some governments have tried to address affordability through grants and incentives … and they have been helping first-home buyers get to market quicker because the quicker you can, the quicker you can capture value in your asset. We need to re-look at the Australian dream and be realistic about it.”
Dr Powell said with three capital cities at median prices of above $1 million – “a milestone and a psychological hurdle for buyers” – governments at all levels needed to evaluate the diversity of housing being built. She said more townhouses, as a medium between apartments and houses, were needed to help address affordability.