Surfers Paradise development remains strong despite what has been a sluggish 12 months for the Gold Coasts' tourism capital, Colliers International's latest research has revealed.

Colliers International's Surfers Paradise Development Map, compiled by Gold Coast Research Manager, Lynda Campbell, shows that development activity has dropped, due largely to several major planned projects being completed and others in the pipeline placed on hold.

Ms Campbell said that $9.44 billion of projects are in the pipeline, down $767 million from 12 months ago.

Several Apartment projects that were under construction in June 2009 have now been completed. These include Modena on Chevron on Chevron Island, XXV Breaker Street at Main Beach and Elston in Surfers Paradise.

Ms Campbell said development in the area, which takes in Surfers Paradise, Main Beach, Budds Beach, Chevron Island, Bundall and Benowa has traditionally predominantly been in the Apartment sector, but the economic difficulties experienced within the last few years, has seen many projects placed on the back burner.

"The largest of these is the planned $1 billion Azzura Pacific Resort in Surfers Paradise, which was to comprise three residential towers, but has now been sold, with future plans for the site yet to be unveiled," she said.

"Another significant development which has been withdrawn from the list, is the $750 million Iluka redevelopment in central Surfers Paradise, which has been placed in the hands of receivers and will probably not be addressed for several years.

"Despite this, the Surfers Paradise area is still the high rise mecca it has long been known as, with $4.7 billion in projects either planned or under construction, in the apartment sector," she said.

The proposed State Government Gold Coast Marine Development Project, which includes a floating hotel, the development of Wave Break Island and the creation of new islands, plus a range of community amenities, tops the development list in terms of value, at $2.5 billion.

Of those projects currently under construction, apartments make up $1.55 billion, comprising Soul, at $850 million and the $700 million Hilton Surfers Paradise Hotel and Residences, both in the heart of Surfers Paradise.

Infrastructure projects accounted for $2 billion, with the $1.8 billion planned Gold Coast Rapid Transit System being a major contributor.

Others under construction include infrastructure projects, namely the $89.5 million Surfers Paradise Foreshore Redevelopment, the $60 million Pindara Private Hospital Upgrade in Benowa and the Nation building economic stimulus for schools, valued at $12 million.

Ms Campbell said the area also has nine relatively small scale commercial developments in the planning stages, with a total value $138 million."

"Such a pipeline has not been seen for several years," she said.

Stewart Gilchrist, Colliers International Gold Coast Director, said there was many active negotiations are underway regarding various major development sites within the surveyed precinct. 

"As such, there is not likely to be much movement on new projects within the next 12 months," he said.

"In the short term is it likely that Hilton Surfers Paradise Hotel and Soul will continue to account for the majority of construction activity in the heart of Surfers Paradise."

"We have seen a number of new developments put on hold and several sites placed on the market," Mr Gilchrist said.

"As economic conditions improve, these sites will be development, although perhaps with changes to current development plans."

For further information please contact:

Susan Epp
Communications Manager | Queensland
Tel: +61 7 3026 3322
Mob: +61 434 573 026
Email: susan.epp@colliers.com