In just a couple more months, our national and enduring love for sport will have plenty to focus on with the launch of the Gold Coast 2018 Commonwealth Games running from April 4 – 15.
Since the first Games took place back in 1930 in the Canadian city of Hamilton, Commonwealth countries and cities around the world have vied for the chance to host the Games, which are second in popularity only to the broader reaching Olympic Games.
In fact, this year’s Commonwealth Games will be the largest sporting event to be staged in Australia in this decade, and will feature the largest integrated sports program in Commonwealth Games history, comprising 18 sports and seven para-sports.
Over 6,600 athletes and officials from 70 Commonwealth nations and territories will descend upon the Gold Coast and event cities such as Brisbane to participate in the Games.
Gold Coast investment
The Gold Coast is Australia’s sixth largest city, with a population of nearly 580,000 people. It is the first Australian city outside of a capital city to host the Commonwealth Games – a feat which will further lift the city’s prominence on the world stage.
As part of its hosting commitment, the Gold Coast has seen a significant influx of large scale infrastructure with reported economic activity of approximately $17 billion on tourism, infrastructure and private development.
One of the major new developments is the Parklands project – a redevelopment of 29 hectares which incorporates 1252 dwellings – a mix of apartments and townhouses – that will house athletes and officials during Commonwealth Games. Also incorporated is 7.3 hectares of green and open space including a community park and extensive landscaped areas.
Parklands is one of the most significant Commonwealth Games legacies for the Gold Coast. After the event, it will transition to become a mixed-use community as part of the ‘Gold Coast Health and Knowledge Precinct’ an emerging Asia Pacific health and innovation hub supported by $5 billion in infrastructure, including Griffith University, Gold Coast University Hospital and Gold Coast Private University Hospital.
Commonwealth Games legacy for investors
In its near 90-year history, the Commonwealth Games have been held in a number of world-famous cities such as London, Edinburgh, Kuala Lumpur and Delhi; including three Australian cities: Sydney, Melbourne and Brisbane.
The post-Games legacy has been significant for many of these cities – be it the benefit to local communities from new facilities and improved transport, or the broader scale effect of urban renewal projects which have completely transformed parts of the city.
Given this history, for property investors, the big question is of course to what extent the Games and post-Games legacy will impact the local property market.
“Large scale events like the Commonwealth Games or the Olympics have a significant impact on residential property as they leave an infrastructure which helps fuel ongoing growth,” said PRDnationwide Chairman and Managing Director, Tony Brasier.
The PRDnationwide 2018 Commonwealth Games Residential Property Impact Report report cites Melbourne and Sydney as two key examples; in Melbourne, residential property price growth two years after it hosted the Commonwealth Games was 20%. In Sydney, two years after the Olympic games, residential price growth was nearly 40%.
“When Melbourne hosted the Commonwealth Games in 2006, new and upgraded infrastructure was scattered throughout the city. Its athlete’s village saw a $43.5 million investment post Games to become a major residential hub in Parkville.
“Sydney saw the same impact after the Olympic Games in 2000. Newington and surrounding areas which once hosted athletes was seeing sales rise 58% by 2001.
“Investment in local transport infrastructure, an athlete’s village able to be transformed into residential dwellings, and increased recreational and retail facilities will see the Gold Coast follow the path of Sydney and Melbourne,” Mr Brasier said.