It's an exciting time for the Gold Coast. With the Commonwealth Games coming up in 2018, the city is in the process of a huge infrastructure upgrade, with the Carrara Sports Precinct costing around $122 million.
Greg Bell, owner and operator of the Ray White Surfers Paradise branch shared his views on all these changes, highlighting the impact that the Commonwealth Games have had on the commercial property market in the Gold Coast.
Looking at all the changes underway, Greg can see only positive growth in the Gold Coast property market. "It's equal between the industrial market and office market. [The property market growth] is currently benefiting, and will continue to do so up until the Games occur."
Greg points out the the huge amount of infrastructure development going on is creating a wealth of jobs. "Out of those jobs comes an opportunity for industry growth," he said. "The extensions of the rail line, and the expansive use of steel and earth moving equipment are all Gold Coast based, pushing the growth of the Gold Coast industry towards new developments."
"There are more people moving to the Coast due to employment opportunities. More people are encouraged."
Greg went on to explain how, as a result of office space demand, vacancy rates will fall, with money going towards workers who can then spend at local restaurants and shopping centres. It's a flow on effect, and can only mean good things for the region.
Remarking on whether this property growth is sustainable beyond the Commonwealth Games, Greg expects there to be a 'honeymoon period'.
"It depends on how the national and global economy is going," he explained, but still thinks that things will remain positive, throughout and after the Games.
"With the expansion of the light rail, people are going to benefit from that market, especially the property market. People will want to live closer to the tram line to commute."
Greg identifies the areas of industrial, office and retail property to be the most significantly impacted through the Commonwealth Games developments. He estimates that over 1,000 jobs have been created just through the development of the area.
"The amount of infrastructure required benefits local industrial businesses, whether cabling, piping, sewerage, electrical… All need to be purchased, hopefully from local businesses, and local market supply will increase. Businesses start to flourish, creating more jobs, which is a positive effect."
"From a commercial perspective, the creation of jobs creates more industry and drives up rates, which creates big demands for firms to relocate to the Coast,. The impact of the sales on industrial properties and lands requires professional surveyors and engineers, driving a need for more, or an expansion of, office space."
The same positive growth can also be seen in the residential market, according to Greg. "These people all moving to the Gold Coast will need a place to live. So, the whole concept of the Commonwealth Games has a positive effect on the property market, whether residential or commercial because of the influx of people. There are massive number of high rises, three-storey walkups and townhouse developments, all creating jobs, and all because of the Games."
For investors wanting to get in on the action, Greg advises that it's best to get involved sooner rather than later. "The market is poised for a good lift, and interest rates are at record lows," he explained. "Don't hold off – there are good gains to be obtained right now, and certainly in the next six months."
This points to an ideal time to look at opportunities in the Gold Coast, especially as spring is the market's busiest season, both for demand and turnover.
When seeking advice for investing, Greg suggests that anyone interested get in touch with the Ray White Surfers Paradise team. They can get added into the database, to then contact agents and start making enquiries. It'll be convenient when the right property opportunity pops up.
The Commonwealth Games are only going to get closer, so get in touch with a Ray White Surfers Paradise agent to speak about commercial property today.