Gold Coast locals are divided into two camps with the news that the 2018 Commonwealth Games will be hosted in their city.
The first group sees that there are definite economic advantages to hosting an event of this magnitude, but this only matters if you can profit from the Games in some way.
The second group is more worried about Australia's natural state and how anticipated property development will affect everything they have ever known and loved.
The property market in the Gold Coast has many benefits to reap from the upcoming Commonwealth Games. Thanks in part to its popularity with tourists all over the globe, the property market has been growing steadily.
And with the staggering numbers of visitors set to descend on the area in 2018, there will be a lot more demand for housing and accommodation on the Gold Coast.
Here in Australia, we’re certainly not strangers to hosting large sporting events, such as the Sydney Olympics and the Melbourne Commonwealth Games. In each case, before the events were held, there was an influx of development causing local property values to rise.
Melbourne’s Commonwealth Games in 2006 required upgraded and new sporting infrastructure. Two years after the Games, there was still close to a 10% increase in combined growth in the area.
This is in addition to the billions earned in revenue from advertisements and general spending by spectators and participants. The Gold Coast is poised to see the same results.
There is currently a massive amount of construction going on in and around the Gold Coast. World class events attached a certain level of prestige to the sunny strip and developers in Australia are putting their money hard at work.
Within the last five years, activity in price growth has only strengthened. One set of recent figures estimated that median housing prices on the Gold Coast have risen more than 10% from five years ago.
While a certain group of negative market analysts believe that the Gold Coast will basically grind to a halt after the 2018 Games, tourism alone will prove them wrong – the only place to go is up!
With a new infrastructure of approximately $950 million in the works, the value of property is set to keep increasing.
If you compare development-related numbers from previous large events, such as the 2000 Olympic Games in Sydney, market forecasters estimate a gigantic impact on the property market in the Gold Coast.
At a cost of almost $7 billion, the 2000 Games’ development plan was one of the largest in the city's history - encompassing not only residential construction but also cultural and recreational aspects.
What the Gold Coast can expect
More centrally located suburbs are currently the strongest growth areas. Ashmore has a 10.2% combined average growth and Southport sits at 11%. These are substantial numbers and other areas are seeing similar returns.
The greatest need is accommodation of every type and style. From hotels and motels to guest homes and bed and breakfasts, those already established can expect to see increased demand. The closest properties to the epicentre of the events will obviously see the greatest rewards.
Buyer competitiveness is at an all-time high, proven by the lowest two-year rate of combined average vendor discounting in history. The way market conditions are rising, combined with the publicity from the Commonwealth Games and newly built infrastructure, the Gold Coast is a definite money-maker.
If you happen to be sitting on a parcel, or parcels of land, now is the time to think about selling them if you are looking to put some money away for the future. On the other hand, if you are in the market to purchase property to use as potential investment income, the time is now!
Browse Development Ready’s lists of property development potential on the Gold Coast today!