We’re a year away from the Gold Coast playing host to the Commonwealth Games, and there’s a great deal of economic activity expected as a ripple effect from the major global sporting event. As the Games draw closer, experts are expecting a lot of development in the area, and that means there should be a glut of new property out there for the taking.
These are going to be strange economic times – the supply of real estate is sure to increase, but the demand likely will as well. The result is uncertain. At this juncture, all we can say for sure is the market will be hectic.
Let’s explore how the market for property is likely to change, and how you can get in on the action.
With the Commonwealth Games on the horizon, we’re seeing a clear trend toward the development of more Gold Coast property. For example, according to the Gold Coast Bulletin, one development team is currently hard at work on a $1.2 billion residential estate at Merrimac-Robina that was sparked directly by the growing interest in the games.
Walker Corporation Queensland is building the new housing district, to be called “Breakwater,” with the expectation that it will house 3,700 residents.
“Breakwater is set to deliver numerous benefits to both existing and future residents in Merrimac-Robina while addressing housing availability on the Gold Coast,” said Peter Saba, general manager of Walker Corporation Queensland.
New developments like this are just part of a larger trend of development that’s been going strong over the last several years. Saba pointed to projections showing that between 2011 and 2036, the Gold Coast area is expected to add 351,000 new residents, which will result in a requirement for an additional 177,800 homes.
An interesting question is how much development can directly be attributed to the impending Commonwealth Games, and how much is just the natural impact of steady population growth in the area over time. We know that commodities like Main Beach real estate are in high demand, but it’s tough to estimate exactly why.
The Games are being credited with a great deal of the current property growth in the area, though. ABC News reported that, according to some estimates, the large global event could bring as much as $4 billion in new revenue. The original estimates were closer to $2 billion, but the Games’ chairman, Peter Beattie, insists the actual result will be higher.
“I think that figure is very much out of date,” Mr Beattie told ABC. “I know the government is starting to do some evaluation now on what that figure will be. I think it’s probably somewhere between $3 billion and $4 billion.”
This revenue is the result of a variety of factors, according to Mr Beattie – trade missions, additional tourism and the construction of Games infrastructure are all contributing to the economic impact of the event. And of course, all the new economic heavy hitters who arrive on the Gold Coast will need housing.
With the increase in residents and economic clout that the region is sure to see during the Commonwealth Games and thereafter, it’s no surprise that Gold Coast real estate is in high demand. If you’re looking to purchase a little property for yourself, we can help you do it at Ray White Surfers Paradise Group.
We have a database of over 200,000 clients, which means we’ll never be low on possible buyers to match with you. No matter where you’re looking for real estate, or in what price range, we’ll be able to find the perfect place for you. Just get in touch with us.