Now Pensions overhauls investment strategy, predicts cash withdrawal

first_imgNow Pensions has become the first master trust to announce changes to its default investment strategy after the recent Budget reforms to defined contribution (DC) schemes.The fund is anticipating its membership to take advantage of the new freedoms and withdraw pensions savings entirely as cash.In March, chancellor of the Exchequer George Osborne announced reforms that meant the majority of DC savers did not have to purchase an annuity.This meant DC default investment funds, which previously tailored strategies based on a combination of cash withdrawal and annuitisation, needed to re-evaluate at-retirement asset allocation based on member preferences. Now Pensions, wholly owned by Danish provider ATP, operates one investment fund for all its nearly 350,000 members.It has now completely removed its annuity-matching investment strategy.The fund originally comprised three strategies – diversified growth to build assets, retirement protection to annuity match and cash protection, which was invested in money market funds and short-dated fixed income.However, after assessing its membership – and due to its belief that annuity purchases will be unlikely – the master trust has stripped out the latter two strategies and replaced them with a ‘retirement countdown’ strategy, which mimics cash protection.Now Pensions said members would remain in the diversified growth strategy until 10 years before the selected retirement age, and then shift into retirement countdown.DC providers have been analysing the impact of the Budget reforms on asset allocation as the removal of compulsory annuitisation comes into effect in April 2015.Most default investment strategies currently have around three-quarters of near-retirement assets invested in annuity-matching products, namely Gilts.However, predictions of the fall in demand for annuities have been as high as 75%.Many default investment strategies will reassess, taking account for larger cash withdrawals and a growing demand for income-drawdown products, where assets remain invested in growth strategies, albeit with lower volatility.Now Pensions has become the first major master trust to announce its new strategy, after the government confirmed its plans on Monday.Chief executive Morten Nilsson said the provider looked at predicted fund sizes and expected the majority of assets to be withdrawn as cash.“The new lifestyle investment strategy therefore focuses on funding for cash but gives consideration to those that want to take an alternative route,” he added.“As the market evolves, we’ll continue to keep our investment strategy under review, adapting our approach to make sure our members are well served.”last_img read more

Long swaps, bonds return 30% over first quarter at ING pension fund

first_imgThe €29bn Pensioenfonds ING has reported a 30% return on its 50-year interest swaps and government bonds thanks to falling interest rates over the first quarter, boosting its quarterly return to 13.8%.The pension fund generated 15.9% on its matching portfolio, which consisted of 70% of its assets.Its 30% return portfolio delivered 12.4%, with equity producing an overall result of 15.5% and European equity returning 18%. The ING scheme attributed the 7.4% return on credit and emerging market debt to the latter, due to higher interest levels and a stronger US dollar. It also noted that listed property continued its rise, generating 18% during the first quarter.Non-listed real estate returned almost 10%.Alternative investments returned 7.8%, largely due to the performance of private equity.The pension fund added that it would divest its remaining positions in hedge funds over the coming months.ING Pensioenfonds said the return from alternatives included a 1% loss on its currency hedge, following the depreciation of the euro against the dollar.It had covered 50% of the risk on the six largest positions in foreign currency.Over the course of the first quarter, the scheme’s funding in real terms dropped by 2.6 percentage points to 86.6%, whereas its official policy coverage ratio stood at 142.9% at March-end.The ING Pensioenfonds has been a closed pension plan since 1 January, when banc-assurer ING was split into companies for insurance and banking.Over the first three months, the scheme’s total number of participants fell by 476 to 72,039.In other news, SPW, the €11.6bn pension fund for housing corporations, posted a quarterly result of 10.6%, due in part to a 16% return on developed market equities.Within its fixed income portfolio, emerging markets, government bonds and credit returned 9.7%, 4% and 8.3% respectively.SPW’s holdings in alternatives also performed well, delivering 13.6% for hedge funds, 10.9% for private equity and 13.3% for infrastructure.Commodities and real estate returned 5.3% and 14.7%, respectively.last_img read more

Dijsselbloem to lead Dutch committee on discount rate

first_imgThe committee’s appointment comes at a crucial period, as the large metal industry schemes PMT and PME have warned that they will need to apply cuts to pension payments from next year if their funding levels – currently 102.3% and 101.3%, respectively – do not improve to at least 104.3% by the end of this year.The general expectation in the pensions sector is that the parameters committee will conclude that pension funds must lower their assumptions for future returns. Jeroen Dijsselbloem has been tasked with reassessing the Netherlands’ discount rateSince 2015, pension funds have been allowed to use a return expectation of 7% a year for listed equities and 2.5% a year for AAA-rated government bonds. Assumptions for other securities and listed property were set at 7.5% and 6%, respectively.Last week, the €399bn civil service scheme ABP announced that it would cut its forecast for overall returns for the next 10-15 years to 5% a year, after generating 6% on average during the past five years.Reducing parameters could lead to higher contributions or reduced pensions and could also have an impact on pension funds’ recovery plans.Discount rate debateThe discount rate for liabilities – the market rate plus the application of the ultimate forward rate (UFR), based on a 10-year average – has been the subject of discussion for years in the Netherlands.Much of the pensions sector, trade unions and pensioners have argued that the discount rate has unnecessarily kept pension funds’ funding levels too low, while economists and risk experts have contended that raising the discount rate would come at the expense of pensions for younger participants.The committee will be specifically tasked with assessing whether the UFR properly reflects the risk-free interest rate for longer durations.The UFR is currently 2.3%, but is expected to drop to 2.2% in July and approximately 2% next year. When the UFR was introduced in 2015, the rate stood at 3.3%.The largest trade union FNV, has advocated adopting the European UFR for insurers – set by European supervisor EIOPA – which is expected to decrease from 4.05% last year to 3.6% in 2021.Social affairs minister Wouter Koolmees, with the support of supervisor De Nederlandsche Bank, has so far rejected raising the discount rate.The committee also includes pension experts Marike Knoef, Bas Werker, Onno Steenbeek, Casper van Ewijk, Anja de Waegenaere and Albert van der Horst. Former Eurogroup president Jeroen Dijsselbloem has been appointed to lead a committee looking into investment parameters and the discount rate for Dutch pension funds, the Dutch ministry for social affairs has announced.Dijsselbloem is a former Dutch finance minister and was chairman of the European Stability Mechanism until January last year.The committee is appointed to advice the Dutch government every five years about assumptions for returns that pension funds are allowed to use when setting their contribution rates.Its recommendations also include the discount rate for liabilities, an important factor in calculating pension funds’ coverage ratios.last_img read more

​Finland ‘must prepare for birth rates to hit contributions’

first_imgFurther readingCompenswiss moves to tackle mounting cashflow problem Compenswiss – the manager of Switzerland’s social security funds – has increased asset sales from CHF100m to CHF125m per month as Switzerland’s ageing population and other demographic developments raised the size of the fund’s negative cashflow problem Dwindling birth rates in Finland will put considerable upwards pressure on pension contribution rates in the future the Finnish Centre for Pensions has warned.The agency – the statutory central body of Finland’s earnings-related pension scheme – said the country must take action to prepare for this shift.It published new statistics indicating that, after the 2050s, pension contributions could rise by around 30% due to the falling dependency ratio.Heikki Tikanmäki, development manager of the Finnish Centre for Pensions, said: “The pension financing outlook is rather stable for the next few decades. The low birth rates should be taken seriously, though. Now is the time to think about how to influence the demographic development.” The centre’s projections were based on data from Finland’s national statistics institution, Statistics Finland. The data showed that the working-age population in Finland would decline between 2019 and 2085 and the share of the population aged 65 or older would continue to rise.However, the government agency said that the private sector insurance contribution under the Employees Pensions Act (TyEL contribution) could be kept under 25% until the 2050s, despite the weakening dependency ratio.It also predicted low investment returns for pension funds in the next decade of around 2.5%, rising to 3.5% afterwards, but said that the pressure to raise the TyEL contribution was still not significant.“The contribution level in the next two decades depends on the economic development,” said Tikanmäki.last_img read more

Assets jump to €17bn in Dutch consolidation vehicles

first_imgGerard Frankema, director of Stap, attributed the growth of his organisation slowing down to “missing out on attracting a few large pension funds”.“However, we are still open to new clients and are currently in discussions with potential customers,” he said.De Nationale APF attracted the largest customer in terms of assets, with the €1.8bn pension fund of automobile organisation ANWB joining with 12,000 participants.Het Nederlandse Pensioenfonds was joined by the company schemes Randstad and Owase, which added €900m and €1.2bn, respectively. Randstad joined with 12,000 participants.Last year, the Centraal Beheer APF expanded with the pension funds Equens (€700m), Sligro (€370m) and Chemours (€330m).Assets at Volo, the APF established by PGGM, rose to €325m. However, PGGM has decided to cease operating the vehicle to focus on its core tasks as a pensions provider for the care sector instead. Its current two clients, Ortec and the former pension fund Jan Huysman, are still seeking another provider.The Delta Lloyd APF is still in liquidation, and following the take-over of Delta Lloyd by NN which has its own APF, it has no further assets. The Dutch general pension funds (algemeen pensioenfonds or APF) saw their combined assets under management increase by no less than 73% to almost €17bn last year.With €6.6bn, Stap – the consolidation vehicle established by insurer Aegon and its subsidiary TKP Pensions – is still by far the largest provider, but the competition is catching up, a survey by Dutch pensions publication PensioenPro has revealed.Het Nederlandse Pensioenfonds of insurer ASR is runner up, with €3.8bn of assets under management, followed by Centraal Beheer APF (Achmea) and De Nationale APF (NN Group), with €3.2bn and €3bn, respectively.Last year, the four APFs welcomed eight company pension funds in total. Delta Lloyd’s APF is in liquidation, following the takeover by NN, which has its own APFDespite the significant growth in assets, combined assets under management of the APFs represented only a limited part of the €1.56trn of total Dutch second pillar assets at the end of October.However, assets managed by APFs now exceed those of the low-cost defined contribution vehicles (PPI), whose combined assets stood at €11.3bn at the end of October.Based on the number of participants, the Centraal Beheer APF is now the largest player on the APF market. It saw the total number of participants increase by 66% to 157,000.The four remaining consolidation vehicles said they expect to attract at least six new pension funds, representing €2bn of assets, in 2020.With these new customers, their total annual contribution volume will increase to €361m.Centraal APF and Stap said they expected to be part of at least 15 and 10 tenders, respectively, for new clients.Het Nederlandse Pensioenfonds added it had already signed three declarations of intent for value transfer of €200m in total for 2020.Roel Knol, executive trustee at De Nationale APF, said “several pension funds had started moving, as clarity about the elaboration of the pensions agreement seems to be increasing”.last_img read more

​Norway’s SWF dumps €2.6bn of climate culprits after years of delay

first_imgThis set of coal exclusions was based on the new absolute thresholds for coal companies that were added to the GPFG’s guidelines last year, taking effect on 1 September, NBIM said.“It is the first time these thresholds in the coal criterion are being applied,” the central bank arm said.Prior to the absolute limits on the amount of coal business a company could do before being blacklisted by the oil fund, the guidelines contained percentage limits.In all, the SWF had $2.8bn (€2.6bn) of equity and bond holdings in these nine companies at the end of 2019, representing some 0.24% of its portfolio at the time.The oil fund’s Council on Ethics originally recommended divesting the companies with oil sands activities back in the summer of 2017, but this advice was not acted on, the council said in its revised November 2019 recommendation, because the criterion had been open to different interpretations.“This caused Norges Bank to refrain from making a decision on this case until further clarification had been obtained,” it said.NBIM also explained why it had taken so long between the decisions to divest and the announcement that they had been carried out:“For several of the companies of which exclusion is now being made public, the market situation, including the liquidity of individual shares, has meant that it has taken a long time to sell the shares in a reasonable manner,” it said.Johan Andresen, chair of the Council on Ethics, highlighted a year ago that none of the five climate-related recommendations the council had made since the criterion was introduced in 2016 had been followed through.In a statement released today, it said that after clarification from the Norwegian Ministry of Finance in June 2019, the recommendation was reissued in the autumn “with minor adjustments relating particularly to the type of greenhouse gas emissions regime the company is subject to.”Alongside the coal-based exclusions, NBIM said it was putting BHP Group, Vistra Energy, Enel and Uniper on its observation list after judging them against this criterion.NBIM also said Egyptian company ElSewedy Electric and Brazilian mining firm Vale were being excluded for risk of contribution to severe environmental damage – the former for participation in developing a hydropower project in Tanzania, and Vale for repeated dam breaches.Meanwhile, the GPFG is divesting Centrais Eletricas Brasileiras (Eletrobras) because of risk of contribution to serious or systematic human rights violations – specifically human rights violations in connection with the development of the Belo Monte power plant in Brazil.Two companies – AECOM and Texwinca Holdings – are being brought back into the GPFG’s investment universe, NBIM said, following a decision based on Council on Ethics advice.There was no longer a basis for the 2018 exclusion of AECOM on the basis of nuclear weapons production, NBIM said, adding that Texwinca Holdings had now liquidated the subsidiary where the council had in 2019 found there to be systematic breach of factory workers’ rights.Forced labourIn other news related to the SWF, the Council on Ethics is currently looking for a firm to probe companies in the oil fund’s portfolio in case any are involved in “practices that may constitute forced labour or other forms of exploitation in working life,” according to an EU tender put out by the Norwegian Ministry of Finance.The investigations should focus particularly in migrant workers, forming a basis for decisions on whether the companies’ conduct can lead to examination or exclusion from the fund, the notice said.“The investigations can be conducted in various countries, including but not limited to countries that import a large proportion of migrant workers, such as the Gulf states (including Saudi Arabia) and Malaysia, together with countries that export a large proportion of migrant workers, such as Bangladesh, Nepal and Pakistan,” the ministry said in the tender.Last November, NBIM said it had sold off investments in UK security firm G4S after the council said some staff at its Qatar and United Arab Emirates operations – mostly migrant workers – effectively had little chance of leaving their jobs because so much of their salaries went to paying off loans to cover high recruitment fees.The deadline for responses to the council’s tender is midday on 12 June.Looking for IPE’s latest magazine? Read the digital edition here. Norway’s NOK10.3tn (€942bn) sovereign wealth fund revealed today that it has divested several of the world’s largest companies in the last few months, finally putting climate-related exclusion rules into action four years after they were first laid down.Norges Bank Investment Management (NBIM), manager of the Government Pension Fund Global (GPFG), announced it had excluded Canadian Natural Resources, Cenovus Energy, Suncor Energy and Imperial Oil from its portfolio “after an assessment that acts or omissions on an aggregate company level lead to unacceptable greenhouse gas emissions.”NBIM said: “The Council on Ethics recommended excluding the companies because of carbon emissions from production of oil from oil sands. It is the first time this criterion is being applied.”In addition, NBIM said it had decided to exclude Sasol, RWE, Glencore, AGL Energy and Anglo American due to the product-based coal criteria in its guidelines – a commercial activity politicians in Norway banned from the fund under certain circumstances because of its environmental damage, including its climate impact.last_img read more

LD Funds prepares for halving of new €13bn holiday fund

first_imgIn its announcement of the cross-party deal, the government said: “The holiday funds will be available for payment by October 2020. The government will enter into dialogue with the social partners and ATP on the specific implementation.”LD Funds, which was tasked with running the holiday fund (LD Feriemidler) in 2017, said the political agreement means DKK60bn (€8bn) of the fund’s total DKK100bn will be paid out after the summer.However, since the majority of the fund’s assets are in the form of loans to employers – allowing companies to keep the assets at work in the business in the years before a staff member retires – LD Funds said the state would initially finance the frozen holiday funds that were to be released early.LD Feriemidler was established as a result of Denmark’s new holiday law which brought the country into line with EU rules on workers’ entitlement to time off.This meant staff accrued an extra year’s vacation time in the transition phase between the old regime and the new, the financial value of which was to be held in the fund and paid out on retirement.Since Frederiksen spoke about the matter last week, both ATP – which administers the holiday fund – and LD Funds have reported a huge volume of enquiries from individuals wanting to know how much they would receive.But LD said for administrative reasons it was not yet possible to see this amount, which would differ from person to person.Among the economic measures announced by the Danish government this morning, a government fund is to be established to recapitalise Danish companies, with DKK10bn being set aside for this.“The fund will contribute to strengthening the capital base of larger, community-based, Danish companies that have exhausted other normal financing opportunities,” Frederiksen’s government announced.It also said a “restart fund” would be set up under the auspices of the Growth Fund (Vækstfonden).Looking for IPE’s latest magazine? Read the digital edition here. The manager of Denmark’s new holiday fund, which was set up to hold an extra year’s worth of employee holiday allowances until retirement, is now preparing to pay out three fifths of the assets far earlier than envisaged.The mass payout was agreed last night in negotiations between the Danish government and a majority of parliamentary parties as part of a major economic stimulus package to help the country recover from the COVID-19 lockdown.Last week Danish Prime Minister Mette Frederiksen had told parliament her government was considering the possibility of handing Danes two of the total of five weeks of their one-year frozen holiday allowance – an idea which has been increasingly debated as a means of supporting businesses.But in the final version of the economic measures hammered out in the early hours of today, it was agreed that the partial payment of the frozen holiday funds would correspond to three weeks’ holiday in order to start the Danish economy.last_img read more

Reno transforms Gold Coast castle from dated to lavish

first_imgThis Sanctuary Cove castle has undergone an amazing transformation over the past two years.IT resembles a modern-day castle with turret-style balconies and a stone path leading to the grand arched front door. The Sanctuary Cove mansion, which has hit the market with a $3 million price tag, may be fit for royalty now but it wasn’t always so palatial.Owners Matthew and Elena Harbottle have spent the past two years transforming the property from dated to lavish. The home before the renovation.They bought it in 2016 as a renovation project.“It was actually the first home that we saw when we were planning the move up to the Gold Coast from rural Victoria,” Mr Harbottle said.They fell in love with its design but Mr Harbottle said the bold colours were “all wrong”.“It was of a very specific taste,” he said.More from news02:37International architect Desmond Brooks selling luxury beach villa16 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoThe kitchen is much more versatile now. The perfect place to relax after a hard day. The foyer is a breath of fresh air. Before the renovation, it was dark and small.Mr Harbottle said his wife scoured the internet for inspiration that would help them breathe new life into the property.“She’s hit the nail on the head with an old-school Hamptons look,” he said.They wasted no time getting to work after moving in.“We’ve got two little boys under five years old and a labrador so it’s been pretty hectic,” Mr Harbottle said. The Harbottle family disliked the colours of the home when they bought it in 2016.“It is such a big house that we didn’t really know where to start.“We focused on the kids’ bedrooms first.”The renovation included removing a wall from the kitchen and building another to create a media room and library, and repainting and revarnishing all the wood throughout the home.Standout features include a detailed staircase, checkered flooring, a diamond-shaped skylight above the foyer, and a pool and spa overlooking the river.It also has a separate pool house.Mr Harbottle said it had been a labour of love and they were excited to start another renovation.“I think we’ll go on a holiday first and then regroup and go again,” he said. Matthew and Elena Harbottle moved from rural Victoria to renovate the home and the result is breathtaking. Matthew Harbottle with sons Jenson and Nico. Picture Glenn Hampsonlast_img read more

Gold Coast unit block on beachfront fetchs more than $2 million at auction

first_imgIt was advertised as either a development project or ­investment property with the potential for four separate ­incomes.It is a popular spot because of its proximity to the Currumbin estuary as well as one of the Gold Coast’s most famous surf breaks, The Alley.Property records show it last sold in 2015 for $2.395 million. More from news02:37International architect Desmond Brooks selling luxury beach villa14 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoMORE: Why I live in … Sanctuary Cove A beachfront unit block at 720 Pacific Pde, Currumbin sold under the hammer for $2.767 million at the weekend.AN old block of beachfront units will be demolished to make way for a new multimillion-dollar property after selling for more than $2 million at the weekend.The Currumbin residences on Pacific Pde sold under the hammer for $2.767 million.Gold Coast-based buyers snapped up the 1960s-built property, which has four units and is on one of the Coast’s most tightly held beachfront addresses.Marketing agent Troy Dowker, of Ray White Mermaid Beach, said they had big plans for the site.“They might just do a little renovation on the flats but their main plan is to redevelop the site,” he said. The unit block was built in the 1960s. It’s in original condition.The property was on the market for about a month before Saturday’s auction and attracted a number of interested buyers.“There were four registered bidders, three participated,” Mr Dowker said.The building is on a 559sq m block and is in its original condition.It has three two-bedroom units and one one-bedroom unit over two levels, each of which has uninterrupted views of the ocean.MORE: Secret mansion sells for $5 millioncenter_img The perfect location.They also show some traditional beach houses on the Currumbin street have sold for more than $4 million over the years.That is well above the suburb’s median sale price, which latest CoreLogic data shows is $970,000 for a house and $500,688 for a unit.It wasn’t the only property to sell under the hammer on the weekend.Another classic beachside unit at Mermaid Beach sold at auction on Saturday for $417,000.Marketing agent Guy Powell, of Ray White ­Mermaid Beach, said eight prospective buyers registered to bid on the Petrel Ave ­property.“There were eight bidders, five active,” he said.A first-home buyer snapped up the popular property. “(He’s) a local guy, he plans to renovate it,” Mr Powell said.He said in his listing that it was the first time in 22 years the property had come on the market.A two-bedroom Palm Beach unit also sold under the hammer for $334,000, while a Labrador cottage sold for $451,000. Check out the view! Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:44Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:44 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p288p288p180p180pAutoA, 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 Rate1xFullscreenHow to bid at auction for your dream home? 01:45last_img read more

Double digit property growth a positive sign

first_imgSeveral Brisbane suburbs were in the list of top state performers. Picture: SuppliedNEARLY 70 Queensland suburbs have recorded double digit capital growth in the past year with some areas skyrocketing by 150 per cent.The Real Estate Institute of Queensland (REIQ) has revealed that 68 suburbs across the state recorded capital growth between 10 per cent and over 150 per cent in the 12 months to June this year, with Blackwater in central Queensland recording the biggest jump.Median house prices rose 151.3 per cent to $94,250 in June, albeit from a low base.But the latest market report by CoreLogic offers even more green shoots of hope, with the median house sales price now up to $105,000 in the resources town.Collinsville, southwest of Bowen, has also recorded solid growth, with median house prices up 46.2 per cent to $95,000 over the same period, while Miles in the Western Downs recorded capital growth of 23.5 per cent to $148,250.REIQ CEO Antonia Mercorella said improved confidence in the coal mining sector was one of the key factors driving the recovery of the property sector in Blackwater and other mining towns. Janelle and Dale Woodhall are selling their palatial mansion at Hamilton.Architecturally-designed, the stunning residence is named Haeremai, spans four levels, is packed full of luxury features and has river and city views.“We bought here in 1993, moved in 1994. The original house was Mediterranean-style and about 11 years ago we knocked it down and designed this with architect Bevan Lynch (ML Designs),” Mrs Woodhall said.“We have always felt that this one of the best areas in Brisbane. Even in just the past two years we have seen lots of new builds and big money coming in.” “The top area delivering the strongest growth has been Blackwater, with 151 per cent growth. This is a result of the resurgence in coal prices and the low base starting point,” Ms Mercorella said.Eleven suburbs reached an annual price growth of more than 20 per cent. These suburbs were Blackwater, Spring Mountain (Ipswich), Collinsville, Minyama (Sunshine Coast), Hamilton, Hollywell (Gold Coast), Miles, Mount Coolum, Dundowran Beach (Fraser Coast), Boonah (Scenic Rim) and Idalia (Townsville).“This spread of suburbs is a good indication that Queensland real estate is delivering steady sustainable growth across the board. We’re seeing growth outside the southeast corner,” Ms Mercorella said.But Ms Mercorella cautioned against celebrating another ‘boom’.“While we’re definitely seeing prices come back in western Queensland mining towns, such as Blackwater, these prices are still below their peak. It’s unlikely we’ll see a return to pre-2013 prices in those areas anytime soon,” she said.Fifteen suburbs on the Sunshine Coast, four on the Gold Coast, six in Ipswich and three suburbs in Moreton Bay also recorded double digit growth, according to the report.A total of 13 suburbs in Brisbane LGA made the list of top performers for the past year. Hamilton was the fifth strongest performer in Queensland and the best performer in Brisbane LGA.House prices in Hamilton increased 32.9 per cent for the past year, to $1.442, million. Other Brisbane suburbs included in the list were Sandgate, Paddington, Mount Ommaney, Sunnybank, Graceville, Hendra, Shorncliffe, Seven Hills, Nundah, Kedron, Bulimba and Auchenflower.Ipswich had six suburbs on the list, the Gold Coast had four and Moreton Bay had three.Ms Mercorella said the southeast dominated the list of top performers, making up about 60 per cent of the 68 double digit performance suburbs.***TOP PERFORMING SUBURBS IN SOUTHEAST QLD/RANKING/1 YEAR CAPITAL GROWTH(House market <2,400 sqm — annual data to June 2018)Suburb Ranking 1 Yr Capital GrowthSpring Mountain (Ipswich) 2 103.6%Minyama (Sunshine Coast) 4 45.8%Hamilton (Brisbane) 5 32.9%Hollywell (Gold Coast) 6 30.5%Mount Coolum (Sunshine Coast) 8 21.9%Boonah (Scenic Rim) 10 21.3%Yaroomba (Sunshine Coast) 13 19.7%Tivoli (Ipswich) 16 18%Cashmere (Moreton Bay) 17 18%Walloon (Ipswich) 18 16.7%Sunshine Beach (Noosa) 19 16.7%Noosa Heads (Noosa) 20 16%Hope Island (Gold Coast) 21 15.7%Ripley (Ipswich) 22 15.4%Sandgate (Brisbane) 23 15.2%Paddington (Brisbane) 25 14.7%Pelican Waters (Sunshine Coast) 28 13.9%Mount Ommaney (Brisbane) 30 13.7%Sunnybank (Brisbane) 34 13.3%Graceville (Brisbane) 37 13%Hendra (Brisbane) 38 12.7%Shorncliffe (Brisbane) 39 12.4%Coes Creek (Sunshine Coast) 41 12%Cooloola Cove (Sunshine Coast) 42 12%Battery Hill (Sunshine Coast) 43 12%Seven Hills (Brisbane) 44 11.9%Nundah (Brisbane) 45 11.9%Monkland (Gympie) 46 11.6%More from newsParks and wildlife the new lust-haves post coronavirus15 hours agoNoosa’s best beachfront penthouse is about to hit the market15 hours agoBongaree (Moreton Bay) 47 11.6%Maroochydore (Sunshine Coast) 49 11.2%Twin Waters (Sunshine Coast) 50 11.2%Tewantin (Noosa) 52 11.2%Coolum Beach (Sunshine Coast) 53 11.2%Kedron (Brisbane) 54 11.1%Sunrise Beach (Noosa) 55 11%D’Aguilar (Moreton Bay) 57 10.9%Mountain Creek (Sunshine Coast) 58 10.9%Flinders View (Ipswich) 59 10.9%Highland Park (Gold Coast) 60 10.7%Rosewood (Ipswich) 61 10.7%Bulimba (Brisbane) 62 10.6%Auchenflower (Brisbane) 66 10%Rainbow Beach (Gympie) 67 10%Ormeau Hills (Gold Coast) 68 10%(Source: REIQ QMM June 2018)***In Hamilton, Janelle and Dale Woodhall are downsizing and have put their palatial Hamilton mansion at 50 Hillside Crescent on the market. REIQ CEO Antonia Mercorella 50 Hillside Crescent at Hamilton is on the marketTheir house is listed for sale with Vaughan Keenan of Grace & Keenan at Newstead.Mr Keenan said he was not surprised by Hamilton’s strong performance, noting a marked increase in interstate buyers from Sydney and Melbourne at open homes.“And I have seen a lot of people from Adelaide and Auckland (New Zealand),” he said. “There is also a lot of local interest, with proximity to private schools is a major factor.”last_img read more