When you're looking to invest in commercial property in Surfers Paradise and the surrounding area, it can help to look to future infrastructure projects and big events that might result in a spike in demand. Tourism has played a big part in supporting the Sunshine State's economy, but the elephant in the room at the moment is something a bit more athletic – the Gold Coast Commonwealth Games. Looming close on the horizon in 2018, the benefits are already being felt.
Residential property is soaring to new heights and business activity is showing signs of following suit as well – and investors could be fuelling the fire. If you were thinking about investing in commercial property, the next few years could see some exciting development. Events like the Commonwealth Games can bring a large amount of infrastructure projects and upgrades – not to mention the international lens that will be focussed on southeast Queensland when the games roll around in 2018.
Queensland is already flying high on residential construction. January saw an impressive number of building approvals, according to the Australian Bureau of Statistics, and a lot of this activity can be contributed to the regions in the southeast. Master Builders' deputy executive director for Queensland, Paul Bidwell, pointed to the Gold Coast in particular as stirring up the pot.
Of the 47.8 per cent more building approvals in January across Queensland, Mr Bidwell said many were for multi-unit residential properties on the Gold Coast – and this can signal that investors are looking for a growth area. He noted that Master Builders Queensland is quite confident that the jump is a result of developments to do with the upcoming Games, which could also advantage commercial assets in Surfers Paradise.
"While it's impossible to say for certain at this stage, we are pretty confident the spike is associated with infrastructure for the Gold Coast Commonwealth Games, which is the most significant project in the region at present," he said in 12 March release.
The Gold Coast is emerging as a real hub of building activity in the Sunshine State. Mr Bidwell highlighted that there was an outstanding 568.5 per cent increase in building approvals in January – to put that in perspective, growth was still strong elsewhere in the state, but even Greater Brisbane and the Sunshine Coast only recorded 7.2 per cent and 13 per cent rises respectively.
According to Master Builders figures, the Gold Coast saw far and away the greatest rises in approval number of the last 12 months as well. There were 56.3 per cent more building approvals over that period, while the Sunshine Coast experienced a 24.1 per cent increase and Greater Brisbane regions saw a 18.5 per cent improvement.
Commercial investors in Surfers Paradise and the Gold Coast could look to burgeoning demand in the residential sector as a good sign that capital is flowing freely into the area – and this is great for turnover. In a February 12 release, Mr Bidwell pointed out that commercial property recorded positive turnover for the first time in five years, suggesting that an upswing could be on the cards as the Games draw closer. Residential property is still the main driver, but the Games are likely to have some fantastic flow on effects.
The Queensland government has already compiled a list of opportunities for businesses to supply goods and services for the Games throughout the state – and the Gold Coast is likely to feel the direct benefits. The Games will most likely draw visitors and interest from all over the world, which is great for the commercial bottom line.
With momentum surging towards 2018, get in touch with the commercial property experts at Ray White Surfers Paradise to find out more about the positive effects of the Commonwealth Games on your portfolio.