The latest quarterly report by Colliers International highlighted Surfers Paradise, Southport and Labrador as hot spots in 2010, with house and unit prices set to soar between seven and 10 per cent.

Helensvale, Varsity Lakes, Robina and Tugun, located close to major shopping centres and the Pacific Motorway, also made the list of best buys.

Colliers research director Aaron Maskrey said Gold Coast property prices were set to rise rapidly this year, as the beachside region bounced back in the wake of the global financial crisis.

“After the challenging year of 2009… due to the global economic conditions impacting on the Gold Coast property market, hot spots for 2010 will focus on areas where recovery will most likely thrive,” he said.

But property analyst Michael Matusik said the price recovery on the Gold Coast could be limited, as the market had performed as poorly as expected in 2009.

“The Gold Coast market, and in particular Surfers Paradise, has been getting a caning of late,” Mr Matusik said.

“There is no question that the Gold Coast is doing it tougher than the rest, with our data [which is based on cleaned up resales] showing that apartment values fell nine per cent during 2008 and a further four per cent last year,” he said.

“According to the latest Queensland government valuations issued in March, ocean-front land has fallen by 30 per cent on the coast.

“But ocean-front apartment values in Surfers Paradise at least actually rose last year – up by 8.9 per cent.”

Mr Maskrey said the property compass has pointed towards suburbs to be serviced by the Gold Coast’s planned Rapid Transit System, although the first stage of the $949 million project is not due to be completed until 2014.

Median prices in each of the listed hot spots ranged from $320,000 for units to $515,000 for houses at the end of 2009 according to the report.

But Mr Maskrey said the completion of the Rapid Transit System and developments in Surfers Paradise, including the Soul and Hilton towers, could soon see property prices jump up to 10 per cent as local residents are attracted back to the tourist hub.

However, local buyers will face competition from foreign investors.

During December and January, the Juniper Group reportedly secured seven sales amounting to $10 million at its 77-storey, $850 million Soul development in the heart of Surfers Paradise, for Chinese, Indonesian and New Zealand investors.

Overseas buyers injected $407 million into the state’s residential market last financial year, of which 45 per cent was spent on the Gold Coast.

Mr Maskrey said first-home buyers may find better value for money in Helensvale where townhouses and units were priced in the $300′s.

“Helensvale is home to a Westfield Shopping Centre and has easy access to the M1 and a railway station,” he said.

The REIQ March quarter median unit and townhouse prices show not only steady prices in most areas but also modest increases in sales numbers.

Demand from first home buyers continues to underpin this segment of the market.

“Units and townhouses are remaining popular due to their affordability and because they are often more centrally located,” REIQ chairman Peter McGrath said.

Sales numbers were up in Brisbane and on the Gold and Sunshine coasts particularly, while median prices were on the increase in Townsville, Mackay, Gladstone and the Sunshine Coast.

While the top end of the residential house market has struggled over recent times, there are signs that this segment of the unit and townhouse market is showing signs of life, particularly on the Gold Coast.

“The top end of the market is becoming increasingly popular as buyers take advantages of some good opportunities,” he said.

Units and townhouses in prime Gold Coast waterfront suburbs such as Broadbeach, Burleigh Heads, Tugun and Surfers Paradise all recorded very healthy median price increases over the period.

“These waterfront locations have staged a comeback. There has been a good volume of sales in response to some very good buying opportunities,” he said.

“This segment of the unit and townhouse market has adjusted to the market conditions and is certainly reaping the benefits.”

Over the March quarter, 2.3 per cent of all unit and townhouse sales in Queensland were for more than $1 million compared to 1 per cent of all house sales on land less than 2,400sqm over the same period.