It was thought the value of Gold Coast houses will continue to remain high even after the Commonwealth Games. According to findings of a research, there are two main attributes of growth
- The willingness of people to live in well-established coastal regions, and
- Demand to have housing options at an affordable rate
Let’s take a look at how Commonwealth games will impact the Gold coast market and how the above-mentioned factors in detail to understand the growth mechanism and find out the reasons behind it.
Why is Gold Coast Famous Amongst Buyers and Investors?
The Gold Coast area is on the south side of Queensland and it has always been a key spot for both investors and buyers who wish to buy a home. The main reasons behind it are the surrounding suburbs and breathtaking beaches. In addition to that following are some of the main factors why most people prefer to live or invest in this area:
- Well-off community and residents of the area
- Outstanding buildings, roads, and other infrastructure
- The unique lifestyle in the region
People who have been living there consider that area a ‘heaven’ for kids. It offers security and a very good atmosphere to the residents.
Gold Coast – A Stable Market at Affordable Prices
In addition to a good environment, the market is quite stable. Not only can you find a house at affordable rates, but also get to have coastal areas and beach in a close vicinity. This is the main reason why most buyers prefer to get a house in this place.
According to a research, there has been a steady growth in the real estate sector of this area. The housing sector had 36 percent growth, whereas, the growth in units was around 23 percent. The value of a median home was around $634k and it was over $411k for a unit. It is not easy to buy a property in this area, but if you wish to try your luck, talk to your advisor who can guide you in the right direction.
How Commonwealth Games Impacted the Region?
Experts are saying that after the Commonwealth Games, there may not be much economic activity, but despite that, the area will continue to grow. The games will have a long-lasting impact on this region. In fact, it was a great event to market the area around the globe. The infrastructure has improved since the games. So many investors had put their money in the development work. For example, the total investment in the Spirit Tower was about $1.2 billion. It will be one of the tallest buildings in the southern hemisphere.
The rising demand may also mean that there will be a limited number of houses on the market. The average holding period of a house is 11 years on the Gold coast. In addition to that, the ratio of home ownership is quite high, i.e., 75 percent. These factors give an indication that the people living there will not be selling their houses, except a few sellers who have not finalized their decision yet.
In addition to that, the investor would also not sell the properties for two reasons:
- They are enjoying growth in their capital, and
- Earning stable income from rent
This is why it is very unlikely that they would sell the houses to potential buyers. However, the demand in this area is very high. People will quickly make a purchase if there is a new inflow of houses. Many experts agree that when it comes to cash flow and equity growth, the units carry higher risk as compared to houses. They believe it is much safer to invest in a house than in a unit. The Gold coast has a very small population as compared to other regions, which eventually impact the economy of this area.
To summarize, the prices will neither drop nor spike in the region due to the Commonwealth Games. In fact, the Games have only contributed to its development and attracted more buyers and investors who are willing to buy houses anytime. Besides, the region has experienced a steady growth over the years and offers a unique lifestyle to its locals, which makes it even more appealing to the potential buyers.