Euro-zone equities drive down returns for Portuguese pension funds

first_imgThe average investment return for occupational pension funds in Portugal over calendar year 2014 was 1.6%, according to figures compiled by Towers Watson.In calendar 2013, returns had been 5.9% and the year before, 6.3%.The highest individual return was 18% and the lowest -10.1%, while the median return was 4.2%.The figures were taken from a sample of 150 pension funds with aggregate assets of €11.8bn, about 90% of the local market. Averages were calculated using market value weightings.Gaudêncio Guedes,
 senior investment analyst at Towers Watson, said: “Thelow weighted average return reflects the poor performance of the biggest pension funds in the market.”Guedes ascribed the poor performance partly to over-exposure to the euro-zone within the equity allocation.He said: “Portuguese pension funds are mainly concentrated in the euro-zone market, both in equities and euro-zone core and national sovereign debt.“Euro-zone equities performed poorly over 2014, while euro-zone sovereign bonds beat all the forecasts, mainly in the peripheral countries.”At 31 December 2014, euro-zone fixed income stood at 36% of portfolios, down from 40% on 31 August 2013 – the last time the survey was carried out – while 1% was in international fixed income.Portuguese equities made up 7% of portfolios, with euro-zone equities (excluding Portugal) at 8%, and a further 8% in global equities, similar to the allocations in 2013.However, another factor affecting performance was the large allocation to real estate (direct 11%, indirect 6%) and to cash (19%).The comparative figures for 2013 were 14% in direct real estate, 7% in indirect real estate and 12% in cash.Guedes said: “Most, if not all, of the direct real estate consists of owning physical assets – buildings – within Portugal.“Cash holdings are also largely in euros, and both these asset classes have performed poorly compared with global markets.”He added: “Both in 2014 and 2013, we can identify a trend showing a preference by managers to have significant amounts of these two asset classes in their portfolio, dragging down returns.”last_img read more

PRI: Companies should disclose footprint of raw-material reserves

first_imgHowever, when drawing up the voluntary disclosure framework, the PRI also urged the task force to acknowledge the need to tailor all frameworks to specific sectors and allow any such frameworks to be flexible.“Preparers need to articulate clearly the links between transition, company strategy and climate-related risks and opportunities,” the PRI added, calling for the use of historical and forward-looking metrics within any such reports.It also called for any proposed standard to apply across all G20 nations and beyond, arguing that a widespread uptake would reflect the “global nature” of investments.For data to be of “high enough quality” for asset owners, third parties should audit disclosures, the PRI said. The TCFD, chaired by Michael Bloomberg, said in a preliminary report last month that it would look at climate-related disclosures for a range of unlisted assets, including real estate and infrastructure.The report said it would examine the role played by institutions, including pension funds, to ensure every area of the credit and investment chain were covered by its recommendations. Extractive companies should disclose the estimated carbon footprint of any unexploited reserves, as well as the asset price used to justify future projects, the Principles for Responsible Investment (PRI) has told a task force on climate-related disclosures (TCFD).In a submission to the task-force, convened by the Financial Stability Board, the PRI suggested any climate-related disclosure framework drawn up should consider the international goal of keeping temperature increases below 2° C above pre-industrial averages.The PRI also noted the new information large oil companies would disclose following the ‘Aiming for A’ campaign led by institutional investors.It said that, in addition to some of the disclosures proposed as part of the shareholder resolutions – such as the value of oil reserves under a number of low-carbon scenarios – companies should disclose their break-even price, as well as the prices used during the planning of future projects.last_img read more

Cambridge University throws weight behind impact investing

first_imgUniversity students and staff have been protesting for months to persuade the CUEF to cut out its exposure to fossil fuel companies, which it holds via pooled investment funds.Currently, the university has no direct holdings in the fossil fuel sector. From now on, any change in this must be referred back to the council, while any indirect investment in the most polluting industries will be kept to the bare minimum. Kings College, CambridgeHowever, the council said: “At this stage, pursuing a strategy that would insist on disengagement from any funds with even small fossil fuel components, or that would require CUEF to step back from investments in alternative energy initiatives by global companies currently regarded as fossil fuel companies, would result in significant limitations on the CUEF’s ability to invest as successfully as in the past.”CUEF’s reporting on ESG issues will be enhanced and included on the university website, while its investment office is to carry out an 18-month review of environmental impact funds. The university will also use its academic leadership to spearhead expertise in environmental impact investing, both for CUEF’s own investment strategy and in developing the sector generally.  A Centre for a Carbon Neutral Future will be created to act both as a focus for the university’s sustainable energy research, and a forum for high-level policy discussions with government and business leaders.In addition, the council has committed to carbon neutrality across the university estate by 2050, but aspires to bring this forward to 2040.University launches index-linked bondMeanwhile, the university has also announced that it has raised £600m from a bond issue, with proceeds to be used to invest in the university’s revenue-generating projects and other facilities.The two tranches consist of a £300m bond with a fixed interest rate of 2.35%, repayable in 60 years’ time, and a £300m bond with a 0.25% interest rate, repayable in equal annual instalments between 10 and 50 years.For the latter bond, payments of principal and interest are linked to any rise in the consumer prices index (CPI), within a floor and cap of 0% to 3% per annum.The amortising CPI-linked issue is believed to be among the first of its kind in the UK bond markets. The council of Cambridge University has made a landmark commitment to addressing climate change in its £3bn (€3.4bn) endowment fund following months of pressure from students and staff.The council endorsed divestment from fossil fuels and encouraging environmental impact investment not only by the endowment fund (CUEF) but by investors generally.It also plans to hire an environmental, social and corporate governance (ESG) officer and consider joining industry groups such as the Institutional Investors’ Group on Climate Change.The commitment is a response to a report from the university’s divestment working group (DWG), set up by the Council in May 2017 to consider the question of divestment from businesses involved in fossil fuel extraction.last_img read more

PRI names lawyer for ‘legal framework for impact’ project

first_imgThe Principles for Responsible Investment (PRI) has chosen law firm Freshfields Bruckhaus Deringer to carry out research on legal questions to do with investors factoring in the environmental or social impact of their investment decision-making.As previously reported, the PRI is collaborating with the UN Environment Programme Finance Initiative and The Generation Foundation on the research project, which has been called A Legal Framework for Impact.The organisations yesterday announced the launch of the project with Freshfields, also revealing it will have a larger geographical scope than had been communicated to IPE earlier this year. Eleven jurisdictions are to be covered: Australia, Brazil, Canada, China, the EU, France, Japan, the Netherlands, South Africa, the UK and the US.According to the PRI and its partners, the research will explore legal frameworks to analyse the extent to which asset owners can prioritise “sustainability impact”, including where this may lead to a negative effect on investment return. As concerns asset managers, the research will explore how they can or should address such an impact where their investment mandate is silent on this.PRI CEO Fiona Reynolds said: “Investing for sustainability impact is the new frontier for responsible investment, with a stronger focus on how investment decisions have real world impact on ESG factors over financial materiality.“This is an exciting and new area of work for PRI which will help investors across a number of markets ensure sustainability is a fundamental part of their investment practices.”A group of experts in law, responsible investment and sustainability impact is to support the research project.Daniel Jackson, managing director of Goldman Sachs Asset Management, is one member of this group, as is Martin Jonasson, general counsel for Swedish buffer fund AP2.“The sheer number of regulations in hard and soft law across these 11 jurisdictions that may restrict, guide or influence asset owners and asset managers in their investment activities make it difficult to navigate the legal landscape to invest for sustainability impact,” said AP2’s Jonasson. “This is why this project is so welcome.”The manager of Norway’s sovereign wealth fund has expressed concerns about the PRI’s move to embrace work on impact, writing that signatories should get a vote on “any substantial strategic development which may represent de facto a new principle”.In 2005 Freshfields published what was hailed as a landmark report on fiduciary duty and the consideration of environmental, social and corporate governance (ESG) factors, although it failed to end the debate about their compatibility.last_img read more

Redington pursues backing from Phoenix Equity Partners as long-term investor

first_imgHe noted that Phoenix’s “track record in backing and supporting management teams to deliver on their strategic vision” has been a key element in the partnership.“It demonstrates confidence in our people to continue to deliver Redington’s client service, unique culture and our ambitious strategy to help make 100 million people financially secure.”Sheth could not disclose the transaction’s financial terms due to a confidentiality agreement.Redington provides framework-based, outcome-oriented investment advice, research and technology to some of the largest institutional investors in the UK, Europe and China. The business has seen strong growth in recent years, with assets under consulting increasing from £115bn (€135bn) in 2013 to more than £500bn. Mitesh Sheth at RedingtonThe business will retain its independence and control over strategy and the inclusive culture on which it prides itself.Sheth added that Redington’s founders – Robert Gardner and Dawid Konotey-Ahulu – will remain involved and the roles and responsibilities of the management team and the company’s 170 staff will remain unchanged.In a statement, Sandy Muirhead, co-founder of Phoenix Equity Partners, said: “Over the last few years, Redington has built an enviable reputation by delivering exceptional client service. This has enabled Redington to achieve significant growth in its core DB and DC pensions business, as well as to develop its new business lines including SaaS and advice to global asset-only institutions.”Redington’s plan for the near future is to aim for steady growth by continuing to work with its existing clients on a consistent basis, and steadily expand its 5% market share of the UK’s largest DB pension funds, Sheth disclosed.He also said the firm is focusing on the DC market by continuing to offer value for money research to trustees and independent governance committees (IGCs).The consultancy is also working with a wealth manager in Norway for which Redington designs funds for, and has also appointed a professional in Germany to advise on pension funds and insurance companies. Redington, an independent institutional investment consultant, has announced it’s in the process of securing private equity backing from Phoenix Equity Partners, a UK mid-market private equity firm. The transaction is subject to regulatory approval by the Financial Conduct Authority.Mitesh Sheth, chief executive officer at Redington, said: “The investment by Phoenix is a positive, natural and planned next step for the business and one which we are very excited about.”He told IPE that Phoenix has been selected with “finding the right cultural fit in mind”.”For the last three and a half years Redington was exploring options on parterning up with a ‘patient’ long-term capital provider that would enable us to have long-term continuity,” he added.last_img read more

Wait until you see what $2m will do to this century old church

first_imgThis dilapidated church will be converted into a modern family home in Brisbane.A LOCAL builder is spending $2 million to resurrect a century-old timber church into a modern family home in the heart of Brisbane — and it will soon be for sale.The dilapidated church had been languishing in a holding yard after being decommissioned and discarded from its original site in the rural town of Nanango, about 200km northwest of Brisbane. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE With architectural vision — and perhaps some divine intervention — the church will next month be transported via police escort to the inner city suburb of Coorparoo. An artist’s impression of a church being converted into a home. Render: PTMA Architecture. This Nanango church will be converted into a modern family home in Brisbane.It will then be transformed into a modern masterpiece in one of the suburb’s best streets, with neighbours such as former cricketer Ian Healy.A local builder bought the original property — featuring a basic four-bedroom home — at 79 Buena Vista Avenue for $1.565 million in April last year. QLD’S RECORD-BREAKING MEGA PENTHOUSE More from newsParks and wildlife the new lust-haves post coronavirus18 hours agoNoosa’s best beachfront penthouse is about to hit the market18 hours agoThe original house on the site at 79 Buena Vista Ave, Coorparoo.Marketing agent Jacq Hackett of Place Cooparoo said the owner had always wanted to do a church conversion and planned to spend about $3 million on the build alone before offering it to the market.“We’ll advertise it for sale during the build, so if someone buys it off-the-plan, they can have bespoke features and tailor it to their requirements,” Ms Hackett said. WOULD YOU PAY $3M FOR THIS? The view from the property at 79 Buena Vista Ave, Coorparoo. An artist’s impression of a church being converted into a home. Render: PTMA Architecture.PTMA Architecture is behind the grand design, which incorporates the church as the main living area, the loft as the master bedroom and a lower level underneath the church, which encompasses a pool, spa, three-car garage and wine cellar, which can be viewed through the floor of the kitchen.A double height stained glass wall will be a statement feature, allowing the entire home to be connected and providing amazing city views. BRISBANE HOUSE PRICE TO HIT $2.2M Inside the dilapidated church, which will be converted into a modern family home.“There is absolutely nothing like this — the project is a new and a first on so many levels.”The historic features of the church will merge with modern architecture when the home comes together, with the original church at the core of the property, surrounded by pavilions, forming separate courtyards facing an indoor pool hidden by oversized stacking doors. An artist’s impression of a church being converted into a home. Render: PTMA Architecture.Other features include an internal lift and a remote-controlled stream that runs alongside the house into a pond.The property will be eco-friendly, using recycled materials and renewable energy.The home will be available for sale off-the-plan from July 26.last_img read more

Blood, sweat and then years of admiring the hard work

first_imgIt is definitely grand!Alfresco areas add to that holiday at home feeling. “There was nothing left to chance,” Mr Marino said. “When we finally saw the finished product it was exactly what we had always wanted.”The 1244sq m double-storey house sits on a 1247sq m block overlooking Columbus Canal.Mr Marino said one of his fondest memories was standing at the barbecue as an inquisitive dolphin looked on.“We often get them coming in. They play for about 15 minutes and move on,” he said. 24 Cayman Crescent Raby BayWHEN Alfio Marino could not find someone to build his dream Mediterranean-inspired house at Raby Bay, he decided to just do it himself.A designer and builder by trade, Mr Marino and his wife Alannah purchased the block of land at 24 Cayman Crescent, Raby Bay, in 1994, and spent the better part of seven days a week for two years constructing their home. You can watch the dolphins from hereMore from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours agoThe house has five bedrooms, three bathrooms and a four car garage. Grand was the word used to describe the living spaces, which include an elegant formal lounge and dining area, with vaulted ceilings adding to feeling of space and light. The ‘state-of-the-art’ kitchen has European appliances and solid timber cabinetry.Outside, alfresco areas add to that holiday at home feeling with the pool occupying its own terrace.Mr Marino said one of his favourite spots was an upstairs balcony with parapet.“You could sit out and read the paper and the passing boats wouldn’t even know you were there,” he said.“On a windy day, you were protected from the elements.”Additional features include a granite staircase with a custom-designed, hand-forged iron balustrade, decorative cornices and ceiling roses, handcrafted times, suspended concrete floors, ducted airconditioning, C Bus wiring, security video cameras plus alarm system, and foundations wrapped in builders black plaster to avoid concrete rot.Mr Marino said it had taken “a very long time” to make the decision to move.“It was the longest time I have been in one place,” he said. “I am moving towards retirement and we have downsized to a two-storey penthouse (at Redcliffe).“It’s still big but I like space. This house (Raby Bay) has always felt like you were permanently on holidays.”The house is listed for sale for $6.5 million and is being marketed by Ming Body and Jan Goetze of Raine and Horne Cleveland.last_img read more

Gold Coast’s newest luxury boutique apartments come at a hefty price

first_imgRender of The AU at Surfers Paradise.A NEWCOMER to the Surfers Paradise skyline is luring the elite through the promise of a lavish lifestyle and sophisticated architecture.The AU is a new boutique residential project by listed company ASF Group featuring 12 full-floor apartments starting from $3.35 million.There are also two luxury penthouses on offer.Residential facilities are set to include 24-hour concierge, a resident’s lounge with a wet-edge pool, sauna, gym and lounging terrace.Render of The AU.Render of The AU.The full floor apartments span more than 250sq m and include a private foyer, study, three ensuited bedrooms and an open-plan living areas extending to beachfront balconies.As well as beach, ocean and skyline views from its position on The Esplanade, the apartments are include imported stone, honed marble and herringbone timber flooring along with gold highlights.MORE: Coast’s ‘Brady Bunch’ selling houseMORE: Why this mega mansion keeps sellingASF Group director David Fang said The AU offered a lifestyle, service and style on a scale not yet seen on the Gold Coast.“Surfers Paradise is one of the top places worldwide where people come to live, work and play,” Mr Fang said.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 agoRender of The AU.Render of The AU.“The AU is the pinnacle of these elements, and will be the ultimate in lavish living for the elite few.”The 19-level building, designed by the Archidiom Group draws inspirations from the sun, surf and sea.Its high-end interiors are the work of Sydney designer Greg Natale, who was briefed to bring Versace into the 21st century.Marketing agent Jamie-Lee Edwards, of Kollosche Prestige Agents, said The AU appealed to owner-occupiers downsizing from luxury riverfront and beachfront mansions across the Gold Coast.“These stunning full-floor sky homes are exceptional in their capacity to cater to downsizers wanting premium space, high-end appointments, utmost privacy and world-class facilities at arms-reach,” she said.Render of The AU.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p360p360p216p216pAutoA, 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 Rate1xFullscreenWhy location is everything in real estate01:59last_img read more

Confidence is returning

first_img16 Mary St, West End.It also has a media room, outdoor entertaining area, shed and large yard.The house been updated but still retains plenty of character.Ms Mahoney said she was confident Townsville’s property market was improving.“We’ve got cranes in the sky, we’ve got development and we had 23 groups through our open homes last weekend so all the key indicators are there,” she said.“I think people have a lot more confidence to buy now.“October was probably our best month in three years.” 16 Mary St, West EndA WEST End house has sold for the highest price in the suburb in more than a year as confidence in Townsville’s property market returns.Julie Mahoney from Ray White Julie Mahoney sold 16 Mary St, West End, at auction for $580,000 as three registered bidders vied for the property.It was the highest residential, single dwelling sale since September 2017, according to REA when 1B Plant St sold for $630,000. 16 Mary St, West EndMs Mahoney said the Mary St property was bought by a professional couple with children who liked the large block and location.“They liked the suburb and it’s a really good street,” she said. “You have two very big, separate lounge areas and at the back is a studio which provides a work-from-home option.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020Ms Mahoney said West End was becoming increasingly popular with buyers.“West End is really popular at the moment and I’m finding a lot of young couples are moving in and it has low insurance because most of the suburb is in a no-flood area,” she said.“It’s so close to the city and contrary to what people believe it’s very breezy, even though people think because it’s tucked under the hill it will be hot.”The four-bedroom, three- bathroom house is on a 1214sq m block with four car accommodation.last_img read more

Brisbane house price hits new record high: What‘s your home now worth?

first_imgThat marks 27 straight quarters of growth — making Brisbane the envy of other capital cities.The Brisbane LGA median house price has jumped 27.3 per cent since December 2013, when it was $535,000.The top suburb for house price growth in the Brisbane local government area over the 12 month period was Auchenflower in the city’s inner west, which recorded a whopping 23 per cent increase in its median house price. This six-bedroom house at 35 Peary St, Northgate, is on the market.The last time the city recorded an annual drop in its median house price was back in December of 2012, according to the REIQ, but it has climbed slowly and steadily ever since.REIQ chief executive Antonia Mercorella said Brisbane’s slow and steady growth innoculated it against the boom and bust cycles of other markets.“Last quarter — the December 2018 quarter — we reported the annual growth figure was 1.1 per cent,” Ms Mercorella said. “Even in the really strong periods of growth, we show growth rates of around 2.5 per cent to 3.5 per cent. “That’s as close to ‘boom’ as we get here! We don’t get that flood of demand and then that mass desertion that puts the market on a roller coaster.”According to the REIQ, Brisbane’s housing market was a “standout performer” when compared to other capitals.Ms Mercorella said Brisbane still offered “incredible value” compared with the southern markets.“Here, you can buy a property 10kms from the CBD for $500,000,” she said. “That’s impossible in Sydney or Melbourne. And it hasn’t been possible for many, many years. “They’ve become unaffordable to the average buyer. We’ve got around 15 suburbs in Brisbane LGA with an annual median house price of $500,000 or below. We offer great value and a fantastic lifestyle.” RELATED: Lowest home loan rates revealed How to earn $50,000 in 3 years This three-bedroom house at 109 Oriel Rd, Clayfield, recently sold for $1.305 million.When it comes to the top growth suburbs, Ms Mercorella said Auchenflower, Northgate and Gordon Park were all within 10kms of the CBD and with access to good road infrastructure. Ms Mercorella said those suburbs were also benefiting from the strong activity levels at the upper end of the market, which was driving up the median house price.“Gordon Park is close to the freshly renovated Lutwyche Shopping Centre and is tucked away in a quiet pocket of the city, with much to offer the right buyer,” she said.“Auchenflower and Northgate also have been a bit of a flippers’ paradise of late, with a number of stunningly restored Queenslanders hitting the market and fetching a premium price.”Patrick and Kim Moore, and their two children, have lived in Northgate for the past 15 years and have watched the suburb change and house prices rise steadily in that time.“A lot of older places and the older population have moved on, so there’s been a real rejuvenation in the last five years with younger families and couples moving here,” Mr Moore said.The Moores, who have put their four-bedroom house at 20 Junior Terrace on the market, are not surprised Northgate recorded the second highest growth in house prices in the year to March. “I think Northgate often gets ignored, but we’re close to the airport, close to the train line, have all the benefits of Nundah in terms of shops and restaurants and it’s a really convenient place to live,” Mr Moore said.“We renovated seven or eight years ago and, at that point, we made a decision to stay and renovate because we saw there was good growth potential in Northgate.” REIQ CEO Antonia Mercorella. Photo: Claudia Baxter.Looking ahead, Ms Mercorella said market sentiment in Queensland was improving in the wake of the federal election and the first interest rate cut in almost three years. “We had agents reporting improved enquiry levels the very next day after a result was known,” she said.“The rate cut will also boost buyer confidence, although it’s down to how much of it is passed on by retail lenders. “We really need the banks to look at their lending processes, and once the new APRA measures are adopted it’s likely that we’ll see more access to credit, which will help more buyers get into the market.“It will also hinge on jobs growth and wages growth. Queensland has all the raw ingredients for a stronger property market, but we just need a bit of added confidence to get us started on a stronger growth trajectory.” More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours agoThis house at 20 Junior Tce, Northgate, is for sale.Marketing agent Dwight Colbert of Ray White – Aspley Group said Northgate had experienced “insane” growth over the past 10 years.“It was always an older demographic, but now executive couples and first home buyers are moving into the area, so there’s a lot of new builds and renovations,” Mr Colbert said.“It’s going to have strong growth in years to come, just because of its proximity to everything — that’s where everyone wants to be.”Mother-of-two Meg Pamenter owns a house in Gordon Park and could not be happier that house prices in the suburb have increased by more than 12 per cent in the past year.Mrs Pamenter and her husband bought the property about 12 months ago as their first house.“We’re very pleased that we bought in this area,” Mrs Pamenter said.“We love it here, we feel safe and there’s a great community feeling. Plus, we’re near the city, but still on a great sized block of land (760 sqm).”Andrew Cowan of Ray White – Alderley, who is marketing a house at 120 Beaconsfield Terrace in Gordon Park, said the majority of prospective buyers in the suburb were from the suburb and were willing to pay a premium to stay there.“Once people live there and see how nice it is, they want to upgrade,” Mr Cowan said.“They love the parks and the brook being so close by.” This house at 117 Adelaide St East, Clayfield, is scheduled for auction.Garry Jones of Place – New Farm sells a lot of property in the small, inner-city suburb of Gordon Park, which has recorded annual growth in its median unit price of 26 per cent.Mr Jones said the largely undiscovered suburb had only gained attention in recent years because of its affordability compared to the neighbouring suburbs of Wilston, Windsor and Grange.“Buyers who would traditionally look in those suburbs have become more comfortable about moving to Gordon Park because they see better value for money and that has created more competition and therefore contributed to price growth,” Mr Jones said.“I definitely believe a lot of the attention has been drawn from more and more people wanting to live around Kedron Brook — that’s a huge lifestyle aspect of the suburb.” This four-bedroom house at 16 Thomas St, Auchenflower, recently sold for $1.83m.Northgate, Gordon Park, Hamilton and Clayfield in the inner north also experienced strong house price growth of between 11 per cent and 13.3 per cent.TOP GROWTH SUBURBS FOR HOUSES IN BRISBANE LGA Suburb Annual median price Annual growth %1. Auchenflower $1.2m 23.1% 2. Northgate $725,000 13.3%3. Gordon Park $875,000 12.2%4. Hamilton $1.45m 11.5%5. Clayfield $1.25m 11.1%6. Riverhills $527,000 10.8%7. Nudgee $642,500 9.6%8. Westlake $749,500 9.3%9. Durack $445,722 9.3%10. Albion $827,000 9.1% (Source: REIQ, based on 12 mths to March 2019) This two-bedroom house at 120 Beaconsfield Tce, Gordon Park, is on the market for $985,000.Mr Cowan said he believed there was more price growth to come.”“I don’t think there’s been a property that’s crushed the $2 million mark yet, but it’s coming,” he said.The REIQ report found the Brisbane unit market — particularly investor stock — was the weakest sector overall.The annual median unit price fell two per cent in the year to March to $441,144, but some pockets outperformed. Among the top growth suburbs for units in Brisbane were Gordon Park and Carseldine on the city’s northside — which recorded an increase in their median unit prices of more than 25 per cent.Across the river, Rochedale, Yeronga and Hawthorne were the best performers. Patrick and Kim Moore with kids, Declan, 14, and Malechy, 11, are selling their house in Northgate, which is one of Brisbane’s top growth suburbs. Picture: Annette Dew.JUST when you thought the housing market was going backwards, new figures reveal Brisbane house prices have hit a new record high.The latest Real Estate Institute of Queensland Market Monitor, released today, shows the annual median house price within the city’s local government area rose 1.5 per cent in the 12 months to the end of March to reach a new high of $680,000. INTERACTIVE: HOW MUCH IS YOUR HOUSE WORTH? Raby Bay, Cleveland, is in the Redland region, which has the most expensive housing outside of Brisbane LGA, according to the REIQ. Image: AAP/Richard Walker.Vacancy rates remain tight, with strong demand for quality rental accommodation in the outer suburbs — particularly Moreton Bay with a 1.7 per cent vacancy rate. “The numbers show the wider Brisbane region is tracking well,” the report said. “There have been no extraordinary changes in metric across the year and, with reasonable days on market and tight vendor discounts, it appears appropriately priced property is finding its buyers.” This cute, three-bedroom house at 51 Rose Lane, Gordon Park, recently sold for $856,000.TOP GROWTH SUBURBS FOR UNITS IN BRISBANE LGA Suburb Median price Annual change %1. Gordon Park $414,000 26%2. Rochedale $745,000 25.2%3. Carseldine $380,500 21.8%4. Hawthorne $542,500 19.2%5. Yeronga $525,000 17.3%6. Paddington $575,000 15.3%7. Woolloongabba $515,590 14.2%8. Auchenflower $480,250 12.1%9. Toowong $485,000 10.9%10. Norman Park $530,000 9.3%(Source: REIQ, based on 12 mths to March 2019)The rental market in Brisbane’s LGA continues to perform strongly for investors when it comes to returns and the vacancy rate is holding steady at 2.5 per cent, according to the report.The Brisbane LGA median rent for a three-bedroom house rose to $435 per week over the March quarter, while a three-bedroom townhouse came in at $420 per week. Two-bedroom units also recorded a median of $420 per week. Brisbane’s rental market continues to perform strongly, according to the REIQ. Image: AAP/Glenn Hunt.The Greater Brisbane region house market recorded growth of 1.9 per cent for the year to March, but Moreton Bay was a standout with house prices rising by 2.5 per cent.Over the past five years, the median house price in the outer Brisbane regions of Logan, Moreton Bay, Redland and Ipswich grew between 13.4 per cent and 17 per cent — supporting the REIQ’s view that these areas are benefiting from steady capital gains.Outside of Brisbane, Redland has the most expensive housing with a median price of $533,250, while Ipswich has the most affordable with an annual median of $346,000. Brisbane LGA’s median house price has hit a new record high of $680,000. Image: AAP/Darren England.last_img read more