2018 Commonwealth Games boosting property market in Gold Coast: PRD Research
The 2018 Commonwealth Games is estimated to inject $2 billion into the Gold Coast economy, with $320 million worth of construction projects, making it an attractive prospect for investors.
Infrastructure benefits would include 1,200 apartments (built for the Athlete’s Village) as well as helping the tourism industry and transport.
The Liveable Housing Design of apartments would make them suitable for all people; regardless of age, family needs or mobility.
The announcement of Commonwealth Games has helped the Gold Coast property market, similar to what it did for Sydney (Olympics, 2000) and Melbourne (Commonwealth Games, 2006), according to a presentation by PRDnationwide.
Between 2014 and 2015, houses in the area recorded a rise in median prices of 6.7%, says the research.
Average days on market and vendor discounting has also been improving over the four quarters to Q4, 2015. Combined average vendor discounting has decreased compared to 2014, sitting at a combined average of -3.4% in 2015, suggesting buyer competition is increasing and people are willing to pay more to secure the deal.
"Whilst major developments projects relating to the Commonwealth Games and infrastructure improvements are taking place across the Gold Coast, the property market has shown positive performance. An increase of 13.2% in house transactions and 14.5% in unit sales over the past 12 months suggests demand is heating up – thus now is the perfect time to enter the market," it says.
Grocon Pty Ltd was chosen to be the developer for the Games Village in 2014, and it is Grocon’s first large-scale construction on the Gold Coast.
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Recent market condition
Robust performance in Southport, Coomera and Carrara house markets suggests positive impact of 2018 Commonwealth Games related major project developments on the property market of these suburbs.
• Southport
Annual Median Price Growth: +8.8% (House), +3.3% (Units) Annual Sales Transaction Growth: +29.4% (House), +26.2% (Unit)
Southport recorded higher median price growth compared to Gold Coast City LGA of 6.1% and 1.9% for house and unit respectively. Double digits increase for sales price in conjunction with an increase in sales transaction indicates strong demand and real capital growth in the area.
• Coomera
Annual Median Price Growth: +3.8% (House), +10.7% (Unit) Annual Sales Transaction Growth: +36.5% (House), -6.0% (Unit)
High increase of house median growth and sales transactions in Coomera suggests that its house market has performed well, making it one of the most outstanding suburbs in the Gold Coast.
• Carrara
Annual Median Price Growth: +4.6% (House), +0.8% (Unit) Annual Sales Transaction Growth: +34.1% (House), +8.3% (Unit)
Carrara popularity has risen for the past 3 years given its consecutive increase of median price for houses. Buyers are shifting their attentions to enter Carrara property market.
Health and education investment is also getting a boost with $10.2 million in funding is set to be directed to the Gold Coast Hospital over the next two years, resulting in 6,700 patients receiving outpatient surgery before 30 June 2017. Additionally, $50 million in funding will go towards a school in Coomera, creating both job and education opportunities.
The Gold Coast market recap for 2015 above clearly identifies that houses in almost all of the suburbs surrounding the 2018 Commonwealth Games have witnessed median price growth over the past 12 months, PRDnationwide says.
Coomera and Runaway Bay have been some of the strongest performers witnessing combined average growth of 7.3% and 13.6% respectively.
Gerald Adam (PRDnationwide Southport Principal) confirms the projected growth for 2015 of 7.0% has been surpassed in Southport, with a median house price growth of 8.8%.
Greg Brewster (PRDnationwide Runaway Bay Principal) states that he has received a high number of interstate investor interests for his area as infrastructure developments adds value from the investor perspective.
Both share similar expectations of their areas upcoming future positive growths, backed by infrastructure developments, 2018 Commonwealth Games and their individual suburb locational features.
The recent growth witnessed is expected to continue up to 2018 and beyond thanks to overall improvement in market conditions as well as the infrastructure and publicity the Gold Coast will be receiving due to the Commonwealth Games.
The Gold Coast City Council has one of the highest projected population growth in Queensland and as was the case with previous sporting events in Sydney and Melbourne, it is expected that the new development will not go to waste, but rather enhance the attractiveness of the surrounding areas.
