27 Mar Gold Coast Market Set to Stay Strong After Commonwealth Games
Ahead of April’s Commonwealth Games, eyes are on Australia’s Gold Coast, which will host the event this year. Property prices are expected to remain strong after the 10-day event has closed, according to a report Tuesday by RiskWise Property Research.
Though many are holding off on property decisions until after April’s games, according to RiskWise, growing demand for affordable housing options and the desire to live in established coastal areas, are likely to keep the Gold Coast’s market robust, the report said.
In the past five years, house prices in the area have grown 36% while apartment units have increased in price by 23%. In the past 12 months, prices for houses and apartments have jumped 7.6% and 5.8% respectively.
As of December 2017, the median house price in the city was A$634,423 (US$500,134), while the median apartment price was A$411,229 (US$324,184).
The Gold Coast, about an hour south of Brisbane and on Australia’s east coast, is famed for its sandy beaches and surf spots.
Its capital growth has been driven by ongoing population growth, high migration levels to coastal areas and the growing economy and labor market in both the Gold Coast and nearby Brisbane, the report said.
“Looking back over the past six years, the Gold Coast has demonstrated consistent population growth ranging from 1.28% to 2.25%, and this means higher numbers of intra-state home buyers, investors and renters,” all of which are set to drive demand, said RiskWise CEO Doron Peleg in the report.
While some reduction in economic activity is predicted on the Gold Coast after the Games, most residents, and the real estate industry as a whole, will not be impacted. Mr. Peleg pointed to major developments like the $1.2 billion Spirit Tower and the Empire Estate, a $1 billion industrial estate as good economic prospects for the area.
The Commonwealth Games, held every four years, is an international sporting event for members of the Commonwealth. Competitors will compete in events like athletics, boxing, beach volleyball, cycling, rugby, gymnastics and hockey.