The Queensland Government is changing its stance on the redevelopment potential of the 3 hectares of beachside land currently occupied by the Broadbeach State Primary School.

While the previous line was that no redevelopment could take place unless student numbers were consistently in decline, Education Queensland has conducted an asset managment study which outlined the sale of part of the site as a possible option.

Under the plan, which could include a highrise up to 50 storeys in height, part of the new building would be used by the school, with the remainder forming residential units and possibly some commercial space.  The idea is new to Australia, but in practise in numerous cities overseas.

Work has begun on the $7 million redevelopment of Pratten and Kurrawa Parks on the Broadbeach foreshore.

The works, which form part of Council’s $120m economic stimulus package will include a shared pathway between Hedges Avenue and Kurrawa SLSC and car park improvements at Margaret Avenue, Old Burleigh Road and Queensland Avenue, an all-abilities playground, new toilet facilities, improved lighting and landscaping, exercise equipment, barbeques and shelters as well as allocated parking for Kurrawa SLSC volunteers.

Work will also be done on dune revegetation to improve both the visual amenity and overall health of the vegetation.

According to new rental research by RPData, only Sydney, Darwin & Canberra have higher median rents than the Gold Coast.

The median weekly rent for a house has risen by $40 in the period from December 2007 – December 2008 to $420.  In the same period, median unit rent has risen by $25 to $340.

The strong rental growth has been attributed to the continuing strong population growth on the Gold Coast which has lead to a tightening in the rental market, with vacancy rates falling below 2%.

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Phil Sullivan has stepped down as head of Gold Coast company City Pacific and director of City Pacific’s development arm CP1.

The resignation comes hot on the heels of the announcement that CP1 – hit very hard by the global credit crisis – made a $109m loss last financial year, with a 76% fall in total revenue.  Mr. Sullivan has retained his 30% stake in the company, and is believed to be staying on a consulting role as his successors take charge of the companies.

New data from the Residential Tenancies Tribunal in Queensland has revealed that the Gold Coast is now, on average, a more expensive place to rent than anywhere else in the state – particularly for those looking to rent houses.

Housing Minister, Robert Schwarten said in a statement that in the year to September 2008, in Brisbane “The cost of renting a three-bedroom house in Brisbane rose from $325 to $360, a hike of 10.8 per cent, while a two-bedroom unit rose 13 per cent from $305 to $345 a week.”

This is compared to the Gold Coast where two-bedroom unit rentals have jumped from $310 to $340 a week (9.6% gain) and three-bedroom houses have increased $30 per week, or 8.3% to $390.

While the news is not great for those looking to rent, coupled with recent interest rate falls, it is music to the ears of property investors – and given the continuing forecast undersupply of property in south-east Queensland, it is likely that rents will continue to rise.

Helped largely by over $11.8m surplus from Gold Coast Water, Council has announced a healthy budget surplus this year.

$10m of the surplus will be diverted to the Social Infrastructure Reserve, raising its total value to $42m, and $6.2 is slated for Council’s Strategic Priority Reserve.

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The Gold Coast City Council has endorsed the use of light rail for its proposed Helensvale – Coolangatta Rapid Transit System.  Stage 1, which will run from Griffith University in Parkwood to Broadbeach is expected to be under construction  by late next year and up and running by mid-2013.

Thus far, the Queensland Government has slated $1.67bn for the system, with the Gold Coast City Council planning to contribute around $120m for Stage 1 and plans to raise further funds from the private sector.

The Rapid Transit System will provide some much-needed relief to the Gold Coast’s roads, which are growing increasingly crowded after years of burgeoning population growth.  There is also little doubt that ‘transport hub’ areas will emerge as a result of the System, which – thanks to the addition of these new services – will likely experience higher-than-average capital growth as well.

Following a turbulent twelve months, being buffeted by a slower property market, the after-effects of the US credit crunch and the fall of MFS, City Pacific has undergone a savage asset write-down and posted a $139m loss for the last financial year, a turnaround in property development activities ($46m profit in FY2006/07, to a $5m loss last year) being one contributing factor.

The write-down has devalued City Pac’s assets by around 37%, and whilst the hit has been a big one, the company has adopted a very conservative line, and appears poised for a more lucrative 2009 with the sale of Townsville’s ocean terminal project for over $20m due to settle later this month.

In positive news, the company’s funds management and financial services arms both performed well despite difficult market conditions.  At times over the past year, there were serious concerns that company would never recover, however at this stage such concerns look set to remain a thing of the past.

Despite making top of the Gold Coast’s Most Powerful 100 People (as judged by the Gold Coast Bulletin) Jim Raptis’ blessings have been mixed this week, with the release of Raptis Group’s financial accounts earlier this week showing a drop in operating profit of nearly $14m.

A slower property market has a strong impact on the company, which is also reportedly in negotiation with its lenders, who are owed in excess of $700m – approximately $600m of which will need to be repaid or refinanced before the close of the current financial year.

However, with sales still continuing on the Group’s Southport Central and Hilton Surfers Paradise developments and with numerous assets, including the recently-acquired Iluka building in Surfers Paradise, and Sheraton Hotel in Main Beach, it has been suggested that it may be possible for the Group to clear as much as $300m-$400m of that debt by the end of the financial year through the sale of some of these assets.

The Group is no doubt hopeful that yesterday’s drop in interest rates, and talk of a resurgence in the local property market will herald a better twelve months to come.