What does the Commonwealth Games mean for Gold Coast property?
The Commonwealth Games is one of the biggest events of the sporting calendar not just for the Gold Coast, but for Australia and the world as a whole. It's an excellent opportunity for people from all corners of the Commonwealth to show off their athletic prowess and bring glory to themselves and their nation.
Australia has always had a strong history of high placement in the Commonwealth Games, but it could also mean a gold medal for your property investments as well. Here's how you're set to be affected by this world-class event being held right on your doorstep.
Sydney, Melbourne and Illawarra: What do these three places have in common? Supremely high demand, powered by people flooding through their gates and driving up prices while consuming the housing supply. It's this population growth that has had such a stark effect on the real estate landscape of these areas, regional and metropolitan, and The Gold Coast is just as likely to experience this influx as people head towards our city as it becomes the centre of the Commonwealth Games.
Just how many people are we talking? The City of Gold Coast Council estimates that there will be more than 100,000 visitors during the games, bringing more than $270 million to the local economy. Not only that, but the equivalent of 30,000 full time jobs are expected to be created as well, along with a $2 billion economics injection and $200 million in new sporting and community infrastructure.
As you can see, it isn't just property that benefits from the Games. The entire city does, with the economic stimulus helping to create employment as well as new attractive sporting facilities in a metropolitan area that already has a heavy sports focus.
In the run up to the games, the Gold Coast is already becoming incredibly popular, with the high demand driving values up. In fact, according to CoreLogic RP Data, if you were to remove the Gold Coast from the equation when calculating Brisbane values, there would have actually been an overall drop in values over the month of June. Keep the Gold Coast in, and that changes to a rise. You might even say that the Gold Coast is carrying Brisbane, all due to the increased interest as a result of the game.
However, what about after the games? Many people will be thinking that this sudden construction and purchasing rush is only going to come back to bite them after the impetus for doing so is long gone. It's true, the tourist numbers are only ever going to be a temporary jump for the City of Gold Coast, as they will be renting a significant amount of property.
But that doesn't mean its a bad thing. One study from QBE describes how once the games are over, it is likely that the huge numbers of residential dwellings being constructed in places like the Commonwealth Games Village will hit the market. Such a sudden supply is sure to bring values back down to a reasonable level, making it a perfect time for those who had been priced out of the market to get a piece of not only the Gold Coast, but of sporting history as well.
The reality is that the Commonwealth Games is an excellent opportunity for both investors and first home buyers looking to get a bargain. Whether you want to take advantage of the increased visitor numbers or are keen to buy up after the surge, the Commonwealth Games could be your ticket to doing just that.
Want to get in on the action, or just find out your options throughout the Gold Coast area? Make sure you get in touch with the team at Ray White Surfers Paradise today and discover a wide range of options in the future centre of Australian sport.