Brisbane property market enjoys Commonwealth Games investment
A report by PRDnationwide has delivered a positive verdict on the impact the 2018 Commonwealth Games will have upon the Gold Coast Property Market, with an estimated $2 billion to be injected into the local economy.
To be hosted in sporting venues across Brisbane, Townsville and Cairns, the report found the Commonwealth Games will continue the trend of median price growth established by its predecessors, including the 2000 Sydney Olympic Games and 2006 Melbourne Commonwealth Games.
Indeed, the growing Gold Coast property market has already experienced positive spill-over effects from the announcement of the event. Between 2015 and 2016, both houses and units in the Gold Coast region have recorded an increase in their median prices of 6.3% and 5.3% respectively.
Average vendor discounting has also tightened to -2.6% for houses and -3.5% for units. This indicates an increasingly competitive market, whereby buyers are willing to pay closer to the first list asking price to secure their ideal property.
Commenting on the findings, PRDnationwide QLD franchise director Greg Braithwaite, said that the Sydney Olympic Games had demonstrated its far-reaching benefits for property markets in cities around Australia.
“The Sydney Olympic Games positively influenced the Brisbane property market, due to an event being held in Brisbane,” he said. “It is expected that the Games will also have a positive impact on the property market of other cities.”
The Queensland Government and Gold Coast City Council has delivered 30,000 new jobs during the construction phase of the games, for projects worth $320 million, with a further $160million allocated to major road upgrades.
Newly constructed sports centres in both Carrara and Coomera will open their doors by the year’s end, as will a new velodrome in Chandler and a $14.5 million hockey facility in Labrador. Meanwhile, large investment in the upgrading Gold Coast rail is designed to reduce crowding, increase passenger numbers and provide better connection to other areas of Gold Coast and Brisbane.
Not only has median prices risen over the past two years, but the rental market is also being impacted by a surge in demand. Brisbane suburb Ashmore is reporting the lowest vacancy rate the area has historically seen, with similar market conditions in Robina.
The report forecasted the Commonwealth Games will boost the Gold Coast’s tourism industry, which will follow on directly to the property sector as a result of the games and 24 months after.