A word from our clients
HOW WILL THE GOLD COAST LIGHT RAIL AFFECT REAL ESTATE PRICES ON THE SOUTHERN GC?
Posted: 17th August 2021
Posted in: Media
The Gold Coast light rail is now back in the spotlight as plans for Stage 3 (Broadbeach South
to Burleigh) are underway, with construction scheduled to begin in the coming months on
the 6.7 kilometre stretch of track.
As we know, a modern transport system is a must for any city wanting to grow, expand and
cater for its increasing population. As anyone who regularly travels on or near the current G-
Link, its construction has provided a much-needed facelift to Gold Coast transport
infrastructure. This is good news for residents and businesses.
There are obvious advantages to light rail, such as reduced travel time, decreased road
congestion and increased accessibility to services. If you’re a property owner with access to
the light rail, it will provide an alternative travel option to get you where you need to go.
Which brings us to the question of real estate. How will the Gold Coast light rail affect real
estate prices as construction moves south? Here are three expert opinions.
CAMERON MURRAY, UNIVERSITY OF QUEENSLAND
Cameron Murray, an economist with the University of Queensland, conducted a research
study which looked at how light rail infrastructure has affected property prices on the Gold
Coast. It focused on properties within 400m of a light rail station, and properties between
400m and 2km from a station.
The study found that land within 400m of the stations increased in value by 7% more than
land between 400m and 2km from the stations in the year after the light rail began
operation. These results are similar to previous international studies.
MATTHEW BURKE, GRIFFITH UNIVERSITY
Matthew Burke, Associate Professor at the Cities Research Institute at Griffith
University, conducted a study that used sales data for residential properties along the light
rail corridor. It compared areas within 800 metres of the stations with locations a little
further away but still in the same vicinity.
The study found that property prices in the corridor areas started to increase very early in
the planning phase. The property value uplift was highest in the locations between 100 and
400 metres from light rail stations. The areas less than 100 metres from the stations, and
between 400 and 800 metres also recorded strong increases, though not quite as much.
ELIZA OWEN, DOMAIN
Eliza Owen, research analyst at Domain, also looked at the light rail project and suggested
that value increases from infrastructure tended to be seen mostly during the early stages.
Her analysis found that value increases happened when developers were speculating on the
value added to the land, which leads to increases at quite an early stage in a project’s
development. Also, if proximity to a light rail stop increases convenience and improves the
liveability of an area then that area will sustain greater demand over time.
WHAT DO LOCALS THINK ABOUT STAGE 3?
In 2018, the Department of Transport and Main Roads conducted community engagement
on the current Stage 3 expansion. They found:
– 70% of people wanted more public transport and preferred light rail over bus
– 86% people are in favour of Stage 3 and want it extended to the airport as soon as
– 72% of Stage 3 corridor residents support future light rail extensions
– 80% of Stage 3 corridor businesses support future light rail extensions
The Gold Coast light rail project is good news for property owners on the Southern Gold
Coast. If you’re interested in taking advantage of upcoming value increases, don’t hesitate
to get in touch with our sales team.