Gold Coast Light Rail Price Growth
1 Jul
House prices around the future Gold Coast light rail track are set to soar, with predictions some property values could jump $100,000 in the next 12 months.
Industry sources say developers have started to circle properties along the route and homeowners are looking to sell when the price is right.
There is evidence of housing price booms in the United States when light rail systems have been built.
According to a recent Tourism and Transport Forum paper, house prices within 800m of the new light rail system in St Louis, Missouri, enjoyed a 32 per cent premium and the cost of track-side apartments in Santa Clara, California, soared 45 per cent.
Rapid Transit System business advisory member Peter Trathen said he could see some house prices on Queen Street and Olsen Avenue jumping as much as $100,000 in the next 12 months as developers started to move in.
Mr Trathen said clever developers were already planning ahead and getting ready to buy up land along the track route.
“If you amalgamate land and put it to a development the value will be huge,” he said.
“There are massive opportunities in terms of development.”
Mr Trathen said developers were all waiting on the market to improve and when it did there would be a big rush.
Urban Development Institute of Australia senior vice-president Steve Harrison said major Queensland property developers were already scouting for opportunities around Broadbeach.
Smart players in the industry were making plans and investing.
“There’s been a lot of movement around Broadbeach,” he said.
There would be a premium on house prices along the light rail route as developers snapped up properties early for long-term plans.
Mr Harrison said once one developer put money behind a project along the route others would ‘pull their finger out’.
Real Estate Industry Queensland Gold Coast chairman John Newlands said house prices would start to rise around the light rail track but not dramatically.
“I don’t think you’ll see house prices jump from $300,000 to $400,000 overnight,” he said.
“I think you’ll see a gradual 10 per cent growth in prices.”
Queen Street resident Steven Gray said he thought prices would go the other way so was pleased to hear of a potential price rise.
“I’ve been here for a long time,” he said. “It’s a noisy street, so if the money was right I’d sell … “
