A spike in new residents for the Gold Coast forecast in the wake of the Commonwealth Games
By the end of the week the Commonwealth Games will have come and gone, and while pictures of our beautiful city are being broadcast around the world, there are some speculating what it could mean for property prices.
What the research tells us
We know that property prices in Melbourne after the Commonwealth Games in 2006 experienced an upsurge. In Parkville Gardens where the athletes village was constructed, property sales transactions rose over 33% in the year after the Games. PRD's 2018 Commonwealth Games Residential Property Impact Report found that, “In 2005 prior to the Games, the annual median price growth was 6.2%. However, on the year of the Games and the year after, prices increased by 11.4%, and continued to grow for the next 24 months.”
“This indicated the positive impact of the Commonwealth Games on the property market in Parkville and its neighbouring suburbs.”
The report also notes that property prices in Newington after the 2000 Sydney Olympic Games also enjoyed an upswing not related to the sale of units in the former athletes village with, “median house prices increasing by 13.4% during the same period.”
infrastructure, new facilities and beautification of the area are three key
factors that lead to a boost in property prices in areas that have recently
hosted a major international sporting event. This is what we saw in Parkville
Gardens and Newington. The effect was not as noticeable in areas far from the
main stadium, however in a much smaller metro area like the Gold Coast we could
expect the effect to be felt city-wide.
What the demographers tell us
Demographer Bernard Salt (yes, he of the smashed avocado fame) predicts that migration rates to the Gold Coast, “will pick up with the commencement of the Commonwealth Games.” but not for the reasons most people think.
Salt believes the Games will change the way locals as well as the rest of the world thinks about the city. In essence the social commentator said the hosting of a major international sporting event is not something that a seaside holiday resort can pull off with credibility. It can only be done by a major world city. And if it can be done well here in the Gold Coast it will create a small but significant seismic shift in public perception.
“Cities can be transformed and that’s then expressed through real estate,” Salt told The Real Estate Insider in the lead up to the REIQ Summit early last month “There are cultural triggers that express how the demographic is changing…”
“For example when museums and art galleries start selling modern art pieces, which is happening in Brisbane, there are young people who have money moving to the area. The city is being transformed…” he said.
Time will tell whether the Gold Coast will enjoy an influx of new money into the economy, post Commonwealth Games, however the indicators are there that, if we do it right, it could be a game-changer for property prices.
PRD Burleigh Heads currently has a wide range of units and houses in the southern and central Gold Coast area available for inspection. Contact one of our friendly sales reps on 07 5535 4499 or firstname.lastname@example.org to learn more.