The recent Commonwealth Games are expected to cause a lot of hype on the Gold Coast housing market based on the long-term effects of the Sydney 2000 Games, which happened in one of the more unattractive areas of Western Sydney – Homebush Bay. After the games, the place was turned from swamps to a nice waterside location with ferry wharves, train lines and commercial, recreational and sporting facilities. Chan & Naylor Accountants in Brisbane weigh in.
There were new suburbs called Sydney Olympic Park, Liberty Grove and Newington and a significant increase in tourists who discovered the wonders of the harbor city while watching the games at home. Sydney now hosts plenty of festivals and attractions to keep alluring overseas visitors.
The Gold Coast, on the other hand, didn’t have to be transformed as it is already a popular tourist destination with so many world class entertainment, accommodation and recreation facilities. However, it was still developed with the $2 billion Games Village, the Southport to Coolangatta light rail, the $6 million China Town area and the $700 million Pacific Fair upgrade.
The games were televised showing the tourist attractions of the Gold Coast and it will likely lead to an increase in tourism in the next couple of years. Tourists create local jobs in entertainment, accommodation recreation, transport, dining, among others and the workers are often renters so it looks optimistic for Queensland property investors.
Median unit prices have increased in major Gold Coast tourist areas during the 2002 to 2007 tourist boom. Unit prices have increased by over 150% but fell by nearly 50% in the next seven years. This means housing demand and economic growth on the Gold Coast are related to the tourism industry.
The Commonwealth Games will most likely deliver positive cash flow and high growth opportunities for investors during this time of widespread slow growth.
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