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.

AS Indy kicks into gear, the Howard Group has unveiled its long-awaited plans for a $170 million `floating’ high rise to be built alongside the Surfers Paradise circuit.

The Howard Group, led by V8 enthusiast and Indy fan Mark Howard, has revealed plans for the unnamed 40-storey tower on a site in northern Surfers Paradise.

The Gold Coast based developer, who founded the Howard Racing Team, has received council approval to construct the tower on the 2382sqm triangular site bounded by Surfers Paradise Boulevard, Main Beach Parade and Higman Street.

The Howard Group bought the site more than 10 years ago from low-key developer Hiro Pamamull Administrators for $3.8 million.

The holding is next to 158 The Esplanade, another site owned by the developer.

It is the second high rise in Surfers Paradise for the Howard Group it built the Pinnacle on the riverfront south of central Surfers and is one of the few developments announced for the northern end of the glitter strip in recent months.

Plans by Raptis Group and CP1 to redevelop the Gold Coast International Hotel and an adjacent block of land have been quashed after the two companies decided to sell in a move to shave debt.

Howard’s Cox Rayner-designed tower will comprise 70 two-per-floor apartments with beach views; a further six podium-level apartments; three commercial tenancies at ground level; 13 offices and recreational facilities including a heated pool, spa, sauna, gym and residents’ lounge.

Earthworks are due to begin early next year, with construction starting in June, 2009.

Mr Howard said the tower was designed to maximise its prime location and become a landmark Gold Coast development.

As well as being on the Indy cicuit, the site is opposite the proposed light-rail track.

“Some of the world’s most iconic buildings, such as Times Square in New York, sit on triangular sites,” said Mr Howard.

“The shape of the site, combined with its gateway to Surfers Paradise location, encouraged us to commission a spectacular building design.

“As a result of some impressive engineering the tower will float above the podium at level three.”

Mr Howard said the tower would sit above the three-level commercial precint, balanced on a centre plinth.

This would give the floating effect, he said.

Mr Howard said another key point of difference would be the office space, to be used exclusively by residents.

“We believe that home should be home and the office the office,” said Mr Howard.

“We will be offering a happy medium where home and the office can be in the same location but not in the same space, only a lift ride away.”

He said his concept was supported by Gold Coast City Council.

“Council supports the home office space offering because it delivers both economic and environmental benefits,” he said.

“Since the residents won’t have to drive to work, it will not add to the area’s traffic.”

Mr Howard said as part of the building’s green commercial concept would include rainwater-collection devices, energy-efficient design and basement security storage.

“The apartments also have close proximity to a patrolled beach; excellent security; spacious floor plans designed for practical living; two side-by-side car parks per unit; high quality finishes and fittings and great amenity,” he said.

“The development has been designed with comfortable emptynesters in mind.”

Howard Group is also developing the environmentally friendly $170 million Sphere, a planned community near Griffith University.

THE Raptis Group yesterday confirmed it was negotiating with Brookfield Multiplex over a possible tie-up on its Hilton Surfers Paradise project.

In a brief statement to the Australian Securities Exchange, the listed Gold Coast developer said discussions with Brookfield Multiplex were ‘ongoing’ and ‘no agreement has been concluded’.

The ASX statement came in res-ponse to a report yesterday in The Gold Coast Bulletin which exclusively revealed Multiplex to be a possible buyer or joint-venture partner for the $700 million Hilton project, which is being undertaken on the site of the former Dolphin Arcade.

Neither Raptis Group nor Brookfield Multiplex would comment on the negotiations, but sources said they were close to finalisation.

“We confirm that we will inform the market once there is a binding agreement,” said Raptis Group.

Brookfield Multiplex is controlled by Canadian investment powerhouse Brookfield Asset Management, which last year privatised listed builder Multiplex in a $4.2 billion takeover.

Raptis has been seeking a joint-venture partner for the Hilton Surfers Paradise project after putting all its Gold Coast assets on the market in a bid to reduce its $750 million debt.

Sources said Brookfield Multiplex was a potential outright purchaser of the Hilton, but the Raptis announcement yesterday said Multiplex intended to take ‘a role in the project’.