While construction of the Gold Coast’s Rapid Transit project isn’t due to commence until November of this year, and completion remains as far away as 2014, commentators and industry insiders are already discussing the positive impact the project will have on real estate values along the Parkwood to Broadbeach route.

Many agree that prices are unlikely to jump overnight, but a gradual increase of 10% or more is expected, with even greater gains for developers amalgamating sites close to the new transport hubs that the project will create.  Already, a developers are sitting on a number of sites near the Gold Coast Convention Centre, and the project’s initial Broadbeach terminus, with hopes of large future capital gains.

International hotel and time-share operator Wyndham Hotel Group have aquired 40 apartments in Azzura’s new Surfers Paradise apartment building.  The building, which will be rebranded, adds the property to the 20 that Wyndham currently own across Australia and the 7100 the group has under franchise or management agreement worldwide.

The move is a boon for the Gold Coast generally, as well as Azzura, which still had a number of the building’s 192 apartments for sale, following sluggish results since completion last year.

Since being frozen – along with the other assets in City Pacific’s First Mortgage Fund over two years ago, new fund manager, Balmain Trilogy have sold the 11,000sqm beachfront Pacific Beach site to a Chinese-back developer for $81.8m.

The developer, Ridong (Gold Coast) Development, has now settled on the purchase and are reported to already be working on plans for a twin tower development for the Surfers Paradise allotment.

New valuations of unimproved land value on the Gold Coast has shown a 5% (on average) decline.  Prestige and waterfront suburbs were hit hardest with Mermaid Beach, Surfers Paradise and Paradise point down 29%, 18% and 15% respectively.

It was not doom and gloom however, Coomera and Ormeau – outer land-rich suburbs recorded gains of 20% and 15% each.  Ten other, similarly categorised suburbs recorded single-digit growth, with the remainder of the Gold Coast static or falling in the last two years.

Mayor Ron Clarke announced today that a 7000sqm block on Cypress Avenue in Surfers Paradise, currently home to a car-park, is slated as a possible new green space area.

The move is still subject to Council resolution, and would not take place until after part of the site was used for the construction of the future Rapid Transport system, but it would answer growing calls from residents and business alike to improve the amenity of Surfers Paradise by adding more open public space.

Mayor Ron Clarke has announced that the $25m redevelopment of the Surfers Paradise foreshore is due to commence on the first of February.  The project will begin with work on the northern strip between Elkhorn Avenue and the Cavill Avenue mall.

Plans include a 20m wide pedestrian promenade and bikeway, as well as new landscaping, amenities, beach shelters, BBQs and seating.  The area has been designed to more effectively link Surfers Paradise with the beach, and provide a better venue for events, like the New Years Eve fireworks.

Despite a 2.3% fall over 2009, the median house price in Surfers Paradise ($1.3m) has come in as the highest in the stage.  On the national scale Surfers Paradise only ranks at 54 – with the exclusive Perth suburb of Peppermint Grove dominating the list with a median house price of $5.4m.  Sydney’s Bellevue Hill and Vaucluse rounded out the top three at $3.25m and $3.16m.

Mermaid Beach, which includes ‘Millionaire’s Row’ Hedges Avenue experienced a 26% fall over the same period, to come in 2nd on the Gold Coast at $1.08m.

A twin-tower mixed use development has been given the green light for the 1.18 hectare site bordered by Ferny, Oak, Palm & Norfolk Avenues, in Budds Beach, Surfers Paradise – alongside the proposed light rail link.

The approved plans, designed by international architecture firm KPF, comprise of a 30 & 53 storey tower, incorporating 238 hotel suites and 327 apartments, as well as an open piazza with commercial, dining and retail space.

At this stage, no time-frame has been put forward for the development – nor have Thakral announced which hotel operators it is considering to manage the property.

In a move that will open up one of Surfers Paradise’s last major development sites, Brisbane investment company Cromwell Group has put a 5200sqm site – consisting of the Lido, Paradise and Forum Arcades up for an expression of interest campaign.

The site, adjoining the Surfers Paradise Hilton construction site was purchased in 2006/07 in two deals for approximately $50m.  Cashed up Sunland are believed to be considering the site for a future high rise.

Following the recent launch of Victoria Towers in Southport – their maiden development on the Gold Coast – South Korean developer, City Plan Partners are waiting on Council approval for a 715 apartment, mixed use development in northern Surfers Paradise.

Having acquired the 1.1 hectare site from Raptis & City Pacific-linked company Cira International for $33m, CPP are hoping for approval for a pair of towers, 55 and 40 storeys each, as well as ground floor retail & dining space on the block bounded by Surfers Paradise Blvd, Ferny, Ocean & Pandanus Aves.

CPP Hope to launch the project late this year, and feel that with a recovering economy and few competitors currently on the market the project will be wll recieved.