The Commonwealth Games may prove the elixir of life for the Gold Coast’s feeble property market, but whether the effects will be felt by the local population as a whole, or merely a select view housing prospectors, is up for debate.
Using information garnered before, during and after the 2000 Sydney Olympic Games, Residex founder and analyst, John Edwards says there’s significant evidence to show that major international sporting events have a positive impact on local housing markets, if only temporarily.
Before the Sydney Games were announced, Edwards says around 64% of the suburbs in the Olympic Corridor outperformed the median growth rate for Sydney, with waterfront established suburbs performing best.
However, he says, once the games were announced and development of the precinct got underway, the position changed very quickly and all but a very small handful of suburbs failed to grow rapidly and outdo Sydney generally.
“The majority of higher growth rates occurred in the first one to three years. The relationship between these suburbs and the Sydney median has changed forever.”
Yet, almost all suburbs for a period of two years after 2002 failed to perform – and, in fact, under-performed – Sydney as a whole, which he argues is likely the result of overpricing in the lead-up to the Games.