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The Commonwealth Games: How have they affected the Gold Coast property market?

By Andrew Bell

The Commonwealth Games took over the Gold Coast in April 2018 with Australia coming out on top of the medal tables. With multiple venues in the city and across Queensland, the 11 day event saw ticket holders exceed 1.2 million and brought the world's media spotlight to the Gold Coast region.

The Gold Coast property market has been consistently on the up since late 2013, outperforming the rest of the state. With so much attention, has the Gold Coast real estate market benefited from hosting the games?

Why might the games make a difference?

While there isn't much in the way of conclusive studies as to the effect of a major sporting event on local property markets, Melbourne and Sydney both saw an increase in property prices and sales in the period after they hosted the Commonwealth Games and the Olympics respectively. Hosting a major international event is generally considered to raise the profile of the host and attract business investment, with property benefit being one of the longer term gains. Infrastructure and transport links usually receive heavy investment which benefits local residents well into the future. Employment can also see a positive outcome; since London hosted the Olympic Games in 2012, 110,000 jobs have been created in the region, according to Hostcity. 

Locally, with an investment of $1.5 billion in infrastructure including development of the Light Rail System, anticipated results include an increase in area appeal and therefore demand for property, according to the Real Estate Institute of Queensland (REIQ).

Approximately 16 million domestic viewers followed the games meaning that the country's attention was focused on the area fueling predictions that there will be high interest from interstate buyers looking to migrate to the area. 

In terms of employment, 1500 staff were hired to support the running of the games, with around 35,000 people employed to realise the plans in the first place. The $550 million precinct is due to become a mixed-use community, with more work due to commence in January 2019 and over 9000 jobs anticipated. Between infrastructure and construction, jobs are available for the long-term with existing and future workers needing accommodation across the region. 

What have we seen so far?

In the immediate weeks following the event, some agencies reported lower than usual sales. This was widely attributed to the fact that many locals had moved out of the city for the duration of the games, which coincided with the school break.

Since then, real estate experts are reporting price rises in urban areas and quicker sales. Few rentals are empty, and when available they are snapped up quickly.

Latest July figures indicate an increase in home value both in comparison to the same time last year and the previous month, across all types of dwelling, according to CoreLogic. August is seeing a healthy rental market and continued low vacancy rates, report Property Investor, and we've seen healthy sales activity in the first part of the month.

Gold coast property values have increased by more the seven per cent over the last three years, according to CoreLogic, and they say prices are predicted to continue increasing as far ahead as 2020. Some property experts are recommending buying now before prices begin to soar, especially for those eager to get on the property ladder for the first time. 

For advice on how to progress with your property needs, get in touch today to start the discussion. Whether you need to buy or sell, we have the resources to help.

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