$20bn infrastructure boom to keep Gold Coast property market going: Colliers

Strong population growth, a rapidly growing economy and more than $20 billion in infrastructure and investment ahead of the 2032 Olympics will continue to drive the Gold Coast property market over the next year, according to a new report from Colliers. the next decade.

With vacancies in the commercial and residential real estate sectors at new lows, Colliers’ latest Gold Coast Market Snapshot predicts the city will continue to outperform the rest of the country, becoming the epicenter of the post recovery. -COVID for domestic investors and developers.

The Colliers report says confidence in the market is supported by the Gold Coast Metro’s residential vacancy rate which has halved to 0.4% over the past year and is now well below the Metro’s Sydney (1.6%) and Brisbane Metro (0.7%).

However, the report warns that rising costs could stall future residential developments, which could further fuel the supply and demand imbalance already affecting the market.

“Despite the headwinds facing the residential sector nationwide, the forward-looking fundamentals of the Gold Coast market are as robust as we have seen at any other time over the past two years,” said the manager of Colliers, Steven King.

“The city’s projected population growth over the next decade will continue to drive housing demand at a time when supply remains very tight and vacancy rates are at record highs.”

The Colliers report reveals that the Gold Coast is on track to increase its population from 145,000 to almost 800,000 by 2032 as the region hosts the Olympic Games.

This means the Gold Coast will need to accommodate an average of 14,500 additional residents each year until the Games.

With the median home price on the Gold Coast at $940,000, the shift in demand towards apartments will increasingly close the affordability gap for new residents, the report said.

The Gold Coast’s economic dynamo is set to drive the population and housing boom over the next decade, with the city’s economic growth rate currently outpacing those of Melbourne, Sydney and Brisbane, with the Gold Coast’s economy having doubled over the past decade. over the past 10 years to reach $39.24 billion, accounting for over 10% of Queensland’s economy.

The economy is expected to grow by 5.6% in 2022, driven by a broad-based recovery in the tourism sector and a significant expansion in the healthcare sector, which has been the fastest growing sector of the Gold Coast economy. rapidly over the past five years.

The Gold Coast added 15,600 jobs in the 12 months to the end of March, taking the city’s workforce to 302,397 – almost half of its resident population of more than 643,000.

The Colliers report highlighted $20.9 billion in public and private infrastructure spending as the catalyst for sustained growth in projects such as the Southport CBD rejuvenation ($5 billion), investment in the Gold Coast Health and Knowledge Precinct ($5 billion), Olympic rail infrastructure upgrade ($2.2). billion) and the extension of the third stage of the Gold Coast light rail (1 billion).

“Improved regional transportation infrastructure will positively impact the scale and investment profile of the local real estate market, attracting capital from institutional investors,” King said.

“More jobs, more people, a bigger economy, improved infrastructure and increased business demand will be the main drivers of growth. Infrastructure spending for the Olympics will play a big role in that growth, but even without that in the mix, the Gold Coast remains Australia’s best-positioned market for growth in the near term.

The Colliers report reveals lifestyle shoppers continue to flock to the Gold Coast post-pandemic, inspired by the ‘work from home’ phenomenon.

“Rising interest rates will have some effect on residential demand, and we’re seeing that in Sydney and Melbourne,” King said.

“However, despite the gains we have seen on the Gold Coast over the past two years, the affordability of properties remains attractive to interstate buyers who are also attracted to a city that is running full steam ahead.”