Brisbane Olympics build powers $120b Queensland infrastructure boom
The Brisbane Olympics building program is on track for completion in mid-2031 – leaving months to tackle any last-minute problems and test the whole structure, the team behind the delivery for the 2032 Games has declared.
“We will get it done!” Andrew Chapman, chief executive of the Queensland Major Contractors Association, assured the Australian Financial Review’s Property Summit on Monday .
“We have so much stuff underway at the moment, and we are making sure that this will be done by mid-2031 so it can all be tested.”
The program for the Olympics and the Paralympics is a massive, multibillion-dollar operation designed to leave a lasting legacy for Brisbane residents and Australia generally after the final closing ceremony.
However, while the direct budget for venue infrastructure and operations is $12 billion to $15 billion, independent economists have issued dire warnings that the final sum could easily blow out to $20 billion or more.
Chapman told the commercial real estate forum that the major problems had been the higher cost of land, persistently low workforce productivity and shortages of skilled labour.
“For a number of years, Brisbane was one of the cheapest places to build, but cost growth and inflation going up means the cost per unit is now on a par with Sydney and Melbourne,” he said.
“But, at the same time, it creates opportunities with supply chains, through the health spend, the housing spend and energy spend. If we can raise productivity and manage industrial relations better, they will be key. We’ve seen massive green shoots in productivity improving over the last 18 months, and I’m quite certain we can get all of this done.”
Brisbane Olympics infrastructure on track for 2031 completion
The venue infrastructure – the construction and upgrade of the 17 venues, including the $3.8 billion Brisbane Stadium at Victoria Park – is set at over $7 billion, while the operational budget will be nearly $5 billion. Much of the cost is being split between the federal and Queensland governments.
In addition, another $3.5 billion is allocated to four regional villages for athletes in Brisbane, the Gold Coast, Sunshine Coast and Rockhampton.
This spending comes on top of the largest capital infrastructure program in Queensland’s history. There is $119 billion allocated over four years, with over $55 billion to be spent on road and rail networks, like the next stage of the Bruce Highway, the Logan-Gold Coast Faster Rail and the Cross River Rail.
It is a massively complex program to bring home, says Leah Kelly, deputy director-general, infrastructure of Queensland’s Department of State Development, Infrastructure and Planning.
“We’ll have two weeks for the Olympics and a further two weeks for the Paralympics across multiple venues,” she said. “It’s important to understand how all the elements come together and how to design the venues, factoring in cutting-edge design, all the way to delivery. “
Athletes’ village to deliver lasting housing legacy
Developer Lendlease is playing a major role in developing the main 1800-unit athletes’ village at the Brisbane Showgrounds in Bowen Hills, on the fringe of the Brisbane CBD. After the Games, the units will be converted into permanent housing.
Lendlease was also part of the consortium, with Mirvac, to develop the Sydney Olympic Village for the 2000 Games, which later became the master-planned community of Newington, and the London 2012 Olympic Village in Stratford.
“The Brisbane village will be used for 10,000 athletes and then 5000 Paralympians, and then become part of the housing stock afterwards,” said Lendlease chief executive development Claire Johnston.
“It is multigenerational infrastructure. What we’ve found is that Games have to adapt to cities, as opposed to cities adapting to Games. Cities must benefit from the infrastructure spend and the homes created will last for generations and be a lasting legacy.”
The final homes delivered could be a mix of build-to-sell and build-to-rent, Johnston said.
Investor confidence grows around Brisbane 2032 opportunities
Meanwhile, the Queensland government’s significant investment has underpinned the entire operation and given all other investors confidence. “That’s both domestic and international investors,” Johnston said.
“People are finding the opportunity very attractive, seeing the case for legacy and longevity. We’ve had a really great response so far.”
That includes South Korea, from which a lot of superfund investment is flowing, despite the country having originally challenged Brisbane to host the Games.
