The news that the 2026 Commonwealth Games will be held in multiple locations across regional Victoria was announced by Victorian Premier, Daniel Andrews, and Commonwealth Games Federation president, Dame Louise Martin, on Monday, 11 April 2022.
The last time Australia hosted the games was in 2018, when the Gold Coast was the hub for the high-profile international competition.
With the decision to host 2026 events in Ballarat, Bendigo, Geelong and Gippsland, the design and construction of new infrastructure developments, including unique athletes’ villages in each key location, will get underway.
Shepparton – approximately 180 kilometres north-east of Melbourne – will also become another regional host to both sporting and cultural events as part of Victoria’s commitment to the games. Meanwhile, ongoing discussions between the Commonwealth Games Federation and Commonwealth Games Australia are yet to reveal if the inclusion of additional sports within the Victoria 2026 program, may mean even more event hosting opportunities for other regional locations.
Beyond that, the proposed Victoria-wide program of live sites, including the travelling Queen’s Baton Relay, will welcome national and international visitors to every corner of the state in the weeks leading up to the opening ceremony that will be held in the iconic MCG.
The flow-on benefit from investment into the required community infrastructure will include a legacy of world-class sporting facilities that will continue to attract other major events to regional Victoria and, subsequently, increase the profile of these locations. At the same time, the development of villages to house the athletes during the competition will leave more affordable housing options in the wake of the 2026 games.
When major events are announced, do increases in property prices follow?
According to some real estate experts, the potential for real estate growth in the regions that will be transformed by the necessary development is something property investors and first-home buyers are sure to watch with interest.
Following the July 2021 announcement that the International Olympic Committee formally awarded the honour of hosting the 2032 Olympic Games to Brisbane and south-east Queensland, a report from CoreLogic – the leading provider of property data and analytics in Australia and New Zealand – revealed that the flow-on impact the Brisbane 2032 games was likely to be gradual, and focused around the significant infrastructure upgrades required to accommodate the influx of both athletes and spectators. The insights predicted that the Olympics would probably act as a positive influence on property market conditions in Brisbane, with an associated uplift in employment opportunities, as well as long-term improvements to transport options and efficiency.
Historically, significant infrastructure projects do tend to motivate a rise in neighbouring property prices, with the legacy of increased housing demand that typically follows additions of new or improved amenities through social and retail outlets. In relation to the Brisbane Olympics, the plans for a billion-dollar overhaul of the Gabba stadium at the heart of the sporting event activity in 2032 is expected to make the already popular precinct even more sought-after by both investors and developers.
Other areas that seem sure to benefit will be the proposed sites for athlete villages that are slated for Robina and Hamilton, with other areas that will benefit from transport infrastructure upgrades to the Bruce Highway and M1 Pacific Motorway, also predicted to see property values rise.
Measuring the property boom predictions
The impact that the 2018 Gold Coast Commonwealth Games had on local property prices has created interesting data to explore. According to SQM Research findings, asking prices in the region showed a definite upswing between 2013 and 2018, following the 2011 announcement that the Gold Coast would be the host.
Following the 2018 Commonwealth Games, data related to house prices and rental vacancy rates in Southport, where new housing was purpose-built to form the athletes’ village, suggests that the transition of athletes’ villages into long-term housing can have a temporary effect on a neighbourhood – a powerful reminder for potential buyers to be mindful of their property purchase timing in areas affected by a major event investment boom. The fact that positive sentiment acts as a key driver of property prices, measuring precisely how the 2026 Commonwealth Games’ host announcement will impact property prices in regional Victoria is more difficult to calculate this soon.
Buying property is always, ultimately, a personal decision and, by applying some research and due diligence (including seeking advice from a trusted financial specialist and undertaking a building and pest inspection report to help you make an informed decision), assessing whether you have achieved a positive property deal comes down to issues around your own financial circumstances and goals.
By purchasing what you can afford, in an area that makes sense for your own home ownership needs, or property investment ambitions, you are more likely to make the property buying choice that suits you.
To find out how our Conveyancing.com.au can help you buy and sell property with greater ease, talk to our team today.
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