INFRASTRUCTURE spending on the Gold Coast and Tweed spells good news for the region’s residential property market, in particular Parkwood, Arundel, Helensvale and the Tweed Coast, according to Colliers International.
Residential project marketing international director Tony Holland said huge infrastructure spending in the region was a big positive for the market, which had suffered over the past three years following global economic turmoil.
His comments came on the back of the release of Colliers International’s latest Gold Coast Development Map that saw infrastructure spending had risen by close to $4 billion over the past two years to reach more than $13.7 billion — the highest level of infrastructure spending the company has recorded since it started compiling the biennial research more than a decade ago.
“The record level of infrastructure spending on the Gold Coast is a positive signal for the future of the region and great news for the residential property market going forward,” he said.
“History has shown that in areas where a high infrastructure spend occurs property sales volumes and prices tend to recover and increase shortly afterwards, when the benefit to the area is realised.
“For instance, a road may be built that improves access to and from an area and that then improves the desirability of the area. People are more inclined to want to live there because it’s convenient. It’s a similar case for a hospital, for instance, as workers will move to the area because it’s convenient to live close to their work. This increased demand then pushes up prices for residential property in the area, as well as rents.
On the Gold Coast it’s just a matter of when, not if, the push in demand and subsequent boost in prices occurs.” He said a good example of this was around Griffith University at Southport where infrastructure projects were plentiful.
“There will be a lot of employment generated in that area and that will lead to significant demand for both owner-occupier and rental property in both Southport and surrounding areas such as Parkwood, Arundel and Helensvale,” Mr Holland said.
“Another area likely to experience great benefit from infrastructure is the Tweed Coast. “When the Tugun Bypass was completed it led to a dramatic surge in the residential property market on the Tweed Coast it reduced travel times for people travelling through that corridor and hence improved its desirability as a place to live.
“There’s now a $359 million upgrade to the Pacific Highway at Banora Point which is almost complete, and it will further reduce travel times between the Gold Coast and Tweed Coast and in turn, improve demand to live in that area.
” He said millions of dollars of property had changed hands in recent months in the area and there was continuing strong inquiry likely to generate strong sales results.