European pension funds shrug off risk of asset bubble

first_imgThe risk of an asset bubble bursting and stalling European economic recovery has been shrugged off by pension funds, despite concerns remaining about the impact of quantitative easing (QE) and the lack of structural reforms.Asked in IPE’s latest Focus Group if the European recovery would be sustainable over the medium-term, 20% of pension funds said they were either certain of very confident, while a further half of respondents said they were quite confident.None of the 21 respondents, representing funds with nearly €275bn in assets, felt the recovery was unsustainable, but one did say it remained concerned about the foundation of growth in future.The funds also rejected the idea that a European asset price bubble could derail growth, despite the search for yield driving up prices in markets including real estate and infrastructure. Only 28% said they believed an asset bubble would burst, whereas the remainder of respondents argued it would not occur.According to one Dutch fund, the risk of a bubble was elsewhere. “Such a bubble is more likely in the US, but not in Europe.”However, concerns over Europe remained. One fund representative said growth faced too much uncertainty and cited lack of reform in “key” countries such as France, as well as Greece, as reason for worry.A Spanish fund raised several more potential hurdles facing growth, such as the proceeds of QE not flowing into the real economy and the stimulus programme being launched by the European Central Bank at a time when rates were already low.“Much needed structural reforms have hardly been made in Europe, and now with QE and lower oil prices there is even less pressure to enact them,” the Spanish respondent added.Despite the concerns over lack of reform and the impact of stimulus, two-thirds of respondents said that increased business investment would drive growth over the next 18 months. A similar percentage of respondents felt that monetary stimulus would also drive growth over the same period, while half of pension funds surveyed were neutral on whether growth would be driven by increased labour productivity. Read more results from the Focus Group in the current issue of IPElast_img read more

BNY Mellon calls for fewer LGPS infrastructure pools, IORP II clarity

first_imgThe 89 funds within the UK local government pension scheme (LGPS) should pool assets into two or three infrastructure pools to service the half a dozen multi-asset arrangements, according to BNY Mellon, which also called for the government to stop promoting a “passive investment is best” agenda and mandate a uniform approach to discount rates.The recommendations, among others, were made in the investment company’s submission to the government’s consultation on reforms to the LGPS, which closes on Friday.BNY Mellon said the government’s asset pooling proposals would help drive down costs, achieve better investment outcomes and stimulate new infrastructure investment.It took issue, however, with certain aspects of the government’s position – for example, for advocating that LGPS should increase their use of passive management to lower management costs. It described this as promotion of a “passive investment is best” agenda.Paul Traynor, international head of pensions and insurance segments at BNY Mellon, said the government’s proposals “confuse price and value”, and that active management was “worth paying for”.“LGPSs shouldn’t move into passives and hope for the best,” he said.  In the context of the government’s aspiration for the consolidation of the LGPS to boost infrastructure investment, BNY Mellon said two or three “infrastructure superpools” should be created rather than each of the six asset pools proposed by the government having their own infrastructure pool.While six LGPS pools “seems sensible”, said Traynor, BNY Mellon also said six LGPS infrastracture players was “too many”.“[F]rom an infrastructure perspective, limiting it further to two or three pools with portfolios in excess of £6bn (€7.7bn) would create even more synergies,” said Traynor.Others have previously suggested a single infrastructure pool should be created, but BNY Mellon said it would lack competition even though it would provide even greater scale.BNY Mellon’s report, entitled ‘LGPS Pooling: The Collective Good?’, said several factors, such as a growing population and low interest rates, support the government’s proposals for increased LGPS investment in infrastructure.But Traynor warned that the LGPS “shouldn’t be seen as an easy way to plug the nation’s funding gap”, citing the risks that come with investment in this asset class, such as construction and reputational risk.From social housing to discount ratesBNY Mellon makes eight recommendations in total, for the schemes and the government.They are wide-ranging, with the remainder addressing issues such as the formal structure of the LGPS pools, tax efficiency and the importance of allowing competition among pools.The investment manager also calls on the government to clarify its policy on social housing and IORP II, the EU directive on occupational pension funds currently being revised, “to give certainty to potential investors”.Another recommendation is for a “proper governance structure” to be established with respect to the decision-making powers of LGPS pools “to safeguard fiduciary duties of the trustee and prevent breaches of European Union competition laws and rules governing collective investments”.The final recommendation is for “some” local authorities to own up to the cashflow challenges they face in the medium to long term.“Whatever the overall health of the LGPS’s funding, some outlier local authorities are on course to face significant challenges to their ability to pay retirees pensions in the medium to long term,” said the investment manager.“The sooner these challenges are faced, the easier it will be to address them.”BNY Mellon also raised the issue of schemes’ funding from the point of view of data accuracy, noting that local authorities use different discount rates that make meaningful comparisons difficult and could be a stumbling block in the context of deciding on pools to partner with.To address this issue, it said the government should mandate a uniform approach to discount rates to facilitate the partnering process.,WebsitesWe are not responsible for the content of external sitesLink to BNY Mellon report: ‘LGPS Pooling: The Collective Good?’last_img read more

Pilot scheme takes KLM to court for terminating ‘unaffordable’ contract

first_imgThe €8.2bn pension fund for KLM pilots has announced that it plans to take the Dutch airline to court over KLM’s decision to end its agreement to plug funding gaps at the scheme in order to provide indexation.In a statement posted on its website, it added that it would call on the court to overturn the company’s controversial decision.In the scheme’s opinion, the employer has acted unilaterally, “taking away a proper balance between the interests of all players involved”.The Pensioenfonds Vliegend Personeel KLM referred to the agreement between KLM and pilot union VNV two years ago about a change in the way contributions are determined. “As a consequence of this agreement,” the board said, “the premiums for KLM were reduced, and its obligation to fill in the funding gap justifiable.”The pension fund said it would pursue its case independently from the summary proceedings recently brought against KLM by the VNV union.The pension fund made clear it had declined KLM’s request to adjust the contract mutually, as well as to wait for a verdict in the case between the union and the employer.“Only a new agreement between the social partners can lead to an adjustment of the contract,” it said.In the summary proceedings before the Amsterdam court, the VNV demanded that KLM revoke the termination of the pension arrangement.The airline argued that, under the new financial assessment framework (nFTK) in the Netherlands, it would have had to come up with an additional €600m, making its initial commitment unaffordable.The VNV, however, claimed the airline would need to set aside no more than €115m by the end of this year.The court is expected to reach a verdict on 27 September.At an earlier stage, the pension fund described KLM’s decision as “unfounded” and said it would keep implementing the existing pension plan.The pilot scheme, when asked by IPE, declined to provide details about its planned legal proceedings or its timing.last_img read more

40,000 Swiss companies to rethink pension plans as AXA restructures

first_imgThe full-service package meant the provider took on all the risks, including longevity, regulation, returns and guarantees.In semi-autonomous solutions the insurer continues to cover longevity risk and reporting, but some of the investment risk is unloaded to the companies. This means the portfolios can take higher risks and increase potential returns, but companies may have to top-up the pension plan if there is a shortfall.AXA said it would pay for an 11% buffer for the new semi-autonomous portfolio.“It is a one time opportunity for SMEs to start [their] pension plan with a 111% funding level,” Roger Ehrensberger, senior manager at PwC Switzerland, told IPE.In total, AXA has offered CHF3.5bn in buffers to be shared among the clients that opt for the semi-autonomous solution.However, Ehrensberger pointed out that AXA had not yet disclosed the conditions linked to this offer, which might include contractual commitments.Future of VollversicherungenAffected clients could switch to one of five other providers of full-service solutions still in the market. The largest, Swiss Life, confirmed in a press release this week that it would continue to offer full-service packages.In a statement announcing its decision, AXA said it exited the market because demand for Vollversicherungen had waned – but Ehrensberger argued that the regulatory framework had also likely played a part in the decision.“The reform package Altersvorsorge 2020 that was rejected last September would have included measures to help insurers offering these Vollversicherungen,” he said.One problem insurers faced when offering full guarantees on returns and pension pay-out levels was that they were forced to invest a major part of their portfolio in fixed income.In the new pension portfolios AXA can increase its equity exposure from under 4% to 30%.“It might be the right market environment to switch to a new pension solution with a lower bond exposure but there is no one-size-fits-all solution,” Ehrensberger said.In addition, he argued that there would still be a market for full-service solutions, especially for SMEs with a larger share of retirees or older employees. The second largest insurance provider of occupational pension plans in Switzerland has changed its business model to rid itself of risky return guarantees.AXA Switzerland has told 40,000 small and medium sized business (SME) clients that it would no longer offer a full-service occupational pension plan with guarantees – known as a Vollversicherung.In total decision affects 400,000 employees and retirees and CHF31bn (€26.1bn) in accrued assets.Instead, AXA said it would change the contracts into what it called “semi-autonomous solutions”, or “teilautonome Lösungen”.last_img read more

TPR: DC governance stats show smaller schemes should wind up

first_imgThe 2019 survey was the first time TPR had asked trustees whether any consideration had been given to winding up the scheme.  The survey revealed a strong correlation between scheme size and compliance with governance requirements. Almost three-quarters (71%) of savers were in pension schemes that met all of the expected governance standards, up from 54% in 2018 and 32% in 2017. One in seven schemes experienced a cyber attack last year, TPR foundThree quarters of schemes reported they had more than half of the cybersecurity controls expected by TPR in place. One in seven reported experiencing cyber attacks or breaches in the previous year, a third of which reported a negative impact. The proportion of schemes experiencing any attacks was highest for master trusts (76%). Across all sizes of scheme, the most common cyber breaches/attacks were staff receiving fraudulent emails or staff being directed to fraudulent websites (7%). One in five relevant schemes took account of climate change in their investment strategies and approaches, covering 82% of DC members. This is because the vast majority of members were in master trusts, and 59% of master trusts took account of climate change, compared with 42% of large schemes, 26% of medium schemes and 11% of those small and micro schemes used for automatic enrolment. The main reason for not considering it was that it was not felt to be relevant to the scheme (mentioned by 35%).From 1 October, schemes’ statement of investment principles has to include trustees’ policies on how they consider environmental, social and governance factors, including climate change, in their investment strategy.About a fifth of the 17 master trusts interviewed in the survey disagreed that TPR had been clear in setting its expectations of the multi-employer pension vehicles. The vast majority agreed the regulator had been proactive in engaging with them and robust in the way it pursued its objectives.Eleven master trusts have been authorised by TPR since this became a requirement. Providers had until the end of March to submit their applications to the regulator or request a six-week extension. Last year TPR estimated up to 30 providers could exit the market either through mergers or winding up.New trustee needs surveyTPR’s survey announcement came as the Pensions and Lifetime Savings Association (PLSA), the Pensions Management Institute and the Association of Member Nominated Trustees launched a trustee-focused survey of their own with pension fund industry forum Mallowstreet.According to Stuart Breyer, CEO of Mallowstreet, the survey was “all about the needs of pension fund trustees”.Laura Webb, the PLSA’s director of membership engagement, said: “The trustee community is responsible for the financial futures of over 76% of the working population in the UK, so it’s imperative that we get a better understanding of the challenges the sector faces.“Given the interest of PLSA members this is a vital piece of work which can really put trustees’ needs at the forefront of the agenda when the results are published and shared within the industry.”The survey findings will be shared with TPR and the government to campaign for trustees’ needs, according to the survey backers. Most smaller trust-based defined contribution (DC) schemes fail to meet governance and trusteeship standards and should quit the market, according to the UK’s Pensions Regulator (TPR).According to its annual DC survey, the trustees of 43% of small schemes have considered winding up. However, those schemes were more likely to meet the required standards than schemes of the same size that have not considered winding up, TPR said.David Fairs, executive director for regulatory policy, analysis and advice at TPR, said: “The statistics clearly show that those trustees which are running small schemes to a comparatively higher standard are trying to do the right thing for their savers by winding up.“They recognise that savers will generally get better value in a larger, better-run scheme which can benefit from economies of scale.” center_img “These figures clearly show that people saving for their retirement are generally far better served by big schemes than small”David Fairs, TPRFor micro schemes and small schemes the corresponding figure was 4% and 1%. Micro schemes have between two and 11 members, and small schemes between 12 and 99.Fairs said: “These figures clearly show that people saving for their retirement are generally far better served by big schemes than small. This long tail of smaller schemes which do not meet the standards we expect is simply unacceptable.”  Cybersecurity, climate changeTPR’s survey also for the first time included questions about cybersecurity controls, climate change considerations, the self-reported influence of the regulator’s interventions and interactions, and attitudes towards its approach to master trust assurance and supervision.last_img read more

People moves: Lloyds pension director joins Law Debenture [updated]

first_imgLaw Debenture, Lloyds Banking Group, Aviva Investors, Russell Investments, Investment Association, PGIM, Jennison Associates, QMA, Schroders, Just Group, Heptagon Capital, Scottish Widows, Edmond de Rothschild Asset Management, Citrus, Gresham House, GAMLaw Debenture/Lloyds Banking Group – Pin-Nee Tang has joined UK financial services Law Debenture as a director of Pegasus, its outsourced pension executive services arm.Tang was previously director of corporate pensions at Lloyds Banking Group. She has also worked as head of pensions at UK insurance company Aviva, responsible for the financial risk exposure linked to its UK and Ireland pension schemes. In her new role, Law Debenture said Tang would lead Pegasus team with the aim of delivering “cost-effective outsourced solutions for a wide range of clients”.  Saida Eggerstedt, SchrodersSchroders – The UK-listed investment house has recruited Saida Eggerstedt as head of sustainable credit. She joins from German asset manager Deka Investment where she was head of corporates and financials.Eggerstedt previously ran credit portfolios – including sustainable strategies – at Standard Life Investments, and was head of high yield at Union Investment.Just Group  – The UK pensions provider has named David Richardson as its group CEO. He has been interim CEO since April 2019 following the retirement of Rodney Cook.Richardson was group chief financial officer at Partnership Assurance from 2013 until its merger with Just in 2016, whereupon he became deputy CEO and managing director of UK corporate business. He has previously worked for Phoenix Group, Swiss Re and Tillinghast.Just Group said Richardson would retain his role in charge of UK corporate business as well as interim CFO, which he has held since October 2018.Heptagon Capital – The $8.8bn specialist equity asset manager has hired Guillaume Amouroux and Lino Roemisch to enhance its distribution efforts in France and Germany.Amouroux – who will focus on French institutions and family offices – joins from Lyxor where he was part of the exchange-traded fund specialist’s institutional sales team. He has also worked on structured products at Société Générale.Roemisch has responsibility for German institutional investors and family offices, and was previously at Goldman Sachs where he worked on marketing and distribution for alternatives UCITS funds across Europe.Scottish Widows – Graeme Bold has joined the UK insurer and pension provider as director of workplace pensions. In his new role he will lead the development of Scottish Widows’ marketing strategy for its master trust and group personal pension products.Bold was previously director of operational strategy and insights at M&G Prudential, and has also worked at Standard Life Aberdeen as strategy director.Edmond de Rothschild Asset Management – Fiona Southall has joined Edmond de Rothschild AM as a senior sales specialist for private markets, responsible for distribution of the firm’s private equity, real estate and infrastructure debt strategies.Southall previously spent nearly 13 years at AXA Investment Managers in a variety of business development roles, most recently in its real assets arm. She has also worked for Merrill Lynch, Ernst & Young and Arthur Andersen.Citrus Master Trust – The £300m multi-employer defined benefit scheme has named Peter Thompson as chair of its trustee board. Thompson is a professional trustee at Capital Cranfield and is a former chairman of the Pensions and Lifetime Savings Association.Gresham House – The UK-based alternatives specialist has recruited Samia Lone as head of legal. She joins from the Abu Dhabi Investment Authority where she was a private equities lawyer, advising on a range of strategies for the sovereign wealth fund. Lone has previously worked at law firms Ashurst, Proskauer Rose and Morgan, Lewis & Bockius.GAM – The Swiss asset manager has appointed Florian Komac as an investment manager in its global credit team. He was previously at AXA XL in New York, managing corporate credit for the insurance company, and has also worked for Swiss Re and Activest (now part of Amundi). Aviva Investors – Ed Dixon has been appointed to fill the newly created role of head of environmental, social and governance (ESG) for the asset manager’s £45bn real assets platform, encompassing real estate, infrastructure and private debt. He joined the asset manager on 16 September, having most recently been sustainability insights director at commercial property development and investment company Landsec. Russell Investments – Riccardo Stucchi has been named managing director and head of France. He joins the asset manager from BlackRock in Paris, where he was most recently head of the financial institutions group and of business development for France, Belgium and Luxembourg.Stucchi previously created and led the firm’s practice in southern Europe for five years. Before that, he was in charge of BlackRock’s institutional development in France.Stucchi will be in charge of driving further growth across the retail and institutional French markets, Russell said. He replaces Michael Sfez, who Russell Investments said had decided to leave the firm to pursue other personal interests. Investment Association – The trade body for the UK’s £7.7trn asset management industry has named Keith Skeoch as deputy chair of its board. Skeoch is chief executive of Standard Life Aberdeen.In addition, Andrew Formica, CEO of Jupiter Asset Management, has rejoined the board, having left following his departure from Janus Henderson in 2018. Irshaad Ahmad, head of institutional for Europe at Allianz Global Investors, has stepped down from the board.PGIM/Jennison Associates – Raj Shant has joined Jennison Associates, PGIM’s fundamental active equity and fixed income arm, as a portfolio specialist to expand the European relationship platform for the firm. Shant was most recently the head of European equities at Newton Investment Management. QMA – Meanwhile, QMA, another affiliate of PGIM, has hired Kishen Ganatra to its business development team for EMEA. QMA is a specialist quantitative investment manager with $123bn (€111bn) in assets under management.Ganatra joins from Mercer where he spent seven years, latterly as European strategic research director. Prior to this he worked at Deutsche Bank and Deloitte.QMA said his appointment was the latest part of an expansion of the company’s international platform. At the start of this year it acquired London-based quant manager Wadhwani Asset Management, now known as QMA Wadhwani.last_img read more

Kamerunga close to Barron River, mountainous rainforest lifestyle

first_img6 Cycas Close, Kamerunga. Rainforest Estate.THE idea of peace and quiet, living close to hiking trails and bike tracks and on the periphery of Cairns’s gorgeous cane fields is drawing more and more buyers to Kamerunga. The suburb is about 10km northwest of the city centre, in the foothills of the Atherton Tableland escarpment, and encapsulating part of the mighty Barron River.LJ Hooker Cairns Marlin Coast agent Michael Skuse said dozens of potential buyers had shown interest in a Sandwich St townhouse in the leafy suburb recently.While the three-bedroom home did not sell under the hammer, buyers negotiated the more than $300,000 price tag that afternoon.“Before the auction I had huge volumes of people through it,” Mr Skuse said.“They liked the fact it was convenient to the city but out of the city.“There was a comment about the schools at Redlynch and Kamerunga being really quite convenient to those.“The other drawcard was the proximity to outdoor activities, cycle tracks and walking areas.”More from newsCairns home ticks popular internet search terms3 days agoTen auction results from ‘active’ weekend in Cairns3 days agoYoung professionals without children were the most interested in property in the suburb, he said.“Of all the people who inspected that one in Sandwich St, nearly all were 30 and under,” Mr Skuse said.“I’m going to list a few more there. Since that auction I’ve had six or so people who were upset they had missed out. It’s pretty popular.”As well as townhouses, the suburb also has an array of detached houses and units, as well.The suburb is believed to have taken its name from the native Yidinji word for Barron Gorge, which is spectacular in the wet season, and the area was formerly known as Barronville.Kamerunga was part of the old Shire of Barron and was significant as a crossing point on the Barron River.A new high level road bridge opened in 1980 to replace the original bridge, which remains as a popular fishing spot during the dry season.Mark Savina’s Kamerunga Rd cane farm attracted plenty of attention earlier this year when he planted hundreds of tall, yellow sunflowers.last_img read more

Cheap Holloways Beach unit among Cairns’ new listings

first_imgNeat and tidy.Sitting in lush tropical gardens, the owner (or holiday tenant) has access to a large salt water pool complete with spa to unwind after a long day and entertain friends and family under a gazebo with BBQ facilities. To top off the deal, the mid-floor, one-bedroom apartment also comes full furnished and with granite bench tops in the kitchen.More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days ago Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:17Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:17 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p360p360p216p216pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenWhat does a million dollars buy in Aussie capital cities?01:17AMONG the city’s 62 new property listings in the last week, one home stands out for its tiny price tag and big lifestyle offering.Metres from Holloway Beach, 63/129 Oleander St is on the market for just $125,000 and has all the trimmings of resort living plus ocean views. Relax in style.Airconditioning in the bedroom and living area and an internal laundry with a washing machine and dryer will seal the deal for many.The unit was last sold in 2013 for $140,000.center_img And entertain too!Only unit 1 at 43 Sandown Cl, Woree at $120,000 and a block of land at 134 Hoare St, Manunda for $100,000 beat the bargain sitting at Holloways.last_img read more

Character filled Queenslander ripe for restoration

first_img Your very own castle on the sand “I really like the lounge room with the fireplace, old cedar cupboards, high ceiling and sash windows.” The house has two generously sized bedrooms off the main hallway as well as a large living space with fireplace. There is a second living area at the end of the hallway with a third bedroom, bathroom and utility room with toilet opening off the space. The big eat-in kitchen features an original brick fireplace.Ms Muller said from what she has been able to work out, the home was one of the original houses in the area. More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours agoThe original fireplaces are still in the home. Picture: supplied.“The property was originally 50 acres when it was purchased from the crown in 1863,” she said. “It has been owned by seven lots of people including the Jacksons and Buchbachs and it was a Methodist Manse for a while. “I’ve spoken to some locals who used to attend Sunday school there at one point. “Everyone seems to know the home but there seems to be conflicting stories.” Ms Muller said while the time had come to sell the home, she was still working with local historians to find out the true history of the home. “It would be great if we could at least get an old photo of the house,” she said.The property is on the market through Tony Pennisi of The Property Hub. Character home with sea breezes and dual livingcenter_img The Queenslander at 41 City Rd, Beenleigh. Picture: supplied. This heritage listed home is one for those keen to undertake a restoration project. The circa 1910 Queenslander sits on a 1012sq m block at 41 City Rd, Beenleigh and has plenty of character features including a wraparound veranda, high ceilings, original fretwork, Australian cedar cupboards, VJ walls and an original double-sided fireplace. Owners Juanita Muller and Matt Horan are hoping to pass the home on to someone who will appreciate its history. “I’d love to see it restored into a beautiful grand house,” Ms Muller said. “Most of the house is in pretty good condition. The actual structure of the home is pretty solid and it has such a nice feel to it. Inside the living room at 41 City Rd, Beenleigh. Picture: supplied. RELATED: Rare seaside estate hits the market last_img read more

Gold Coast suburb tops the list of real estate heavy hitter John McGrath’s areas to watch

first_imgA Gold Coast suburb has made John McGrath’s top picks in Queensland.A SURGE in apartment prices has earned one Gold Coast suburb a mention on the state’s list of top locations to watch.Broadbeach Waters was John McGrath’s top pick of Queensland suburbs, revealed in the latest McGrath Report 2020.He said the “bridesmaid to Broadbeach” was outshining its beachfront counterpart in terms of apartment price growth. John McGrath“Broadbeach Waters is benefiting from the ripple effect with a 15.2 per cent rise in apartment prices to a median $501,250 in the 12 months to June 30 compared to just a 1.9 per cent gain to $530,000 in Broadbeach,” he said.“Buyers might not get beachfront living but they can buy canal-front just a few blocks away from the surf with plenty of local restaurants, bike paths for families and a nearby rainforest walk.” MORE NEWS: How to decipher Tinder-style property listings While the suburb recorded significant price growth during the period, CoreLogic data shows it was based on 49 sales whereas Broadbeach’s median was based on 342.Kollosche agent Jamie Harrison warned the data wasn’t so black and white.He said villas and duplexes were likely classified as apartments because most of the properties on offer in the suburb were houses, and many of those have sold more than $1 million. More from news02:37International architect Desmond Brooks selling luxury beach villa9 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day agoVideo Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:12Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:12 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenWhen is the best time to sell or buy? Property cycles explained02:13 MORE NEWS: The Coast’s most popular suburbs “A few of those might be strongly influencing the overall median,” he said.However, he agreed that many people did prefer Broadbeach’s quieter neighbouring suburbs.“There are a lot of people want to buy close to Broadbeach but don’t want to be right in the heart of it,” he said.“I think a lot of people like the idea of proximity but don’t want to be in a 30-storey tower.”He said a few smaller boutique apartments on the verge of Broadbeach were much more appealing to some buyers.Other suburbs on Mr McGrath’s list of top picks were Oxley, Hendra, Chermside West and Gordon Park.last_img read more