APG reverses offshore-windpower policy after new risk assessment

first_imgThe €396bn asset manager APG has said it is now ready to invest in offshore windfarms after overcoming initial reservations about the risks involved.After considering new data – in part provided by energy companies – it said it was able to make a risk assessment that met its investment criteria. In addition, last year’s Energy Agreement assured APG that the government’s subsidy rules for investments in offshore windpower would remain in place, according to spokesman Harmen Geers.As part of the accord – brokered by the Social and Economic Council (SER) – the Dutch government has committed itself to subsidising 3,450 megawatts of offshore windpower for the 2015-19 period. APG’s announcement that it was ready to invest in local windfarm Borssele I coincided with the presentation of a petition urging the asset manager to divest its stakes in coal, shale gas and tar sands within two years.The petition was signed by 10,000 participants of the €344bn civil service scheme ABP, APG’s largest client, and was presented to José Meijer, ABP’s vice-chair, by the ABPfossil-free organisation. Currently, ABP has a €30bn stake in energy and energy infrastructure, and €1bn invested in sustainable energy, including onshore windfarms. Geers said ABP wanted to double its share in renewable energy to €2bn.“However, finding the right investments is not easy, as the investment must be at least €100m, and our investment criteria prevent us from owning more than 50% of any project,” he said.He that investments must also match APG’s risk/return criteria.That said, APG’s participation in the planned windfarm Borssele I would in part be subject to the outcome of a survey into the expected interaction with a Belgian windfarm nearby, Geers said.According to the spokesman, the project is expected to be tendered at the end of this year, and APG intends to join one of the subscribing consortia.Geers added that APG also supported a sustainable climate policy, but one enacted through gradual changes.“Divesting all our stakes in coal within two years, for example, is too sudden,” he said.“And what is more, as an investor, we wouldn’t be able to engage with those companies about their policies any longer.”last_img read more

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IFRS confirms position on fair-value accounting for longevity swaps

first_imgThe International Financial Reporting Standards (IFRS) Interpretations Committee has confirmed it will not add a project to its agenda to address how defined benefit (DB) pension plan sponsors account for longevity swaps.The decision came during a review of the issue as part of the committee’s 24 March meeting round.At an earlier meeting in November, the IFRS IC tentatively ruled that DB plan sponsors must account for longevity swaps as single-instrument plan assets held at fair value but declined to add the topic to its agenda.Committee members also declined to include a clarification in their final published decision to address the application of paragraph 115 of International Accounting Standard 19, Employee Benefits (IAS 19) to so-called qualifying insurance policies. IFRS IC committee member Tony Debell said that, although he was “comfortable with finalising the agenda decision”, he nonetheless had concerns about “the additional language that has been added to the agenda decision”.A longevity swap transfers the risk of pension scheme members living longer than expected from pension schemes to an external party such as an insurer or a bank.The effect of a swap transaction is to freeze or settle the DB plan sponsor’s obligations to the scheme members and reduce income statement volatility.Longevity risk is one of the biggest risks faced by DB pension schemes and can lead to schemes paying out higher pension payments than expected and, as such, push a fund into deficit.During it’s November meeting, the IFRS IC explored to possible accounting approaches.Under the first approach, a scheme sponsor would book the swap as a plan asset and measure it at fair value.But under the second approach, a DB sponsor would treat the swap as a so-called qualifying insurance policy and book the premiums as a liability.The committee published details of its tentative decision 11 November meeting outcome in its official journal, IFRIC Update.Also during the 27 March meeting, the committee rejected a staff proposal to augment its agenda rejection notice by adding a reference to the application of paragraph 115 of IAS 19 to qualifying insurance policies.This enhanced wording stated that paragraph 115 of IAS 19 applies to “qualifying insurance policies that exactly match the amount and timing of some or all of the benefits payable under the plan”.Qualifying insurance policies are defined in paragraph 8 of IAS 19.Audit giant Deloitte appears to have sparked the staff decision to enhance the wording of the rejection notice.In a 20 January comment letter, Deloitte argued: “[W]e recommend that the tentative agenda decision also state that the requirements of paragraph 115 of IAS 19 only apply to a plan asset that meets the definition of a qualifying insurance policy.”Deloitte went on to warn that the issue of longevity swaps is likely to emerge as a more prominent issue in practice in future.Speaking in November, IFRS IC member Reinhard Dotzlaw noted that longevity swaps are “not uncommon in certain other jurisdictions like the UK”.For example, in February 2013, the trustees of the BAE Systems plc 2000 Plan entered into an arrangement with Legal & General to insure against longevity risk for the current pensioner population.The deal covered £2.7bn (€3.7bn) of pension scheme liabilities.And in December 2013, the trustees of the Royal Ordnance Pension Scheme and Shipbuilding Industries Pension Scheme entered into similar arrangements with Legal & General to cover £0.9bn and £0.8bn of pension scheme liabilities, respectively.Longevity swaps are usually accounted for as plan assets under IAS 19.Prior to 31 December 2013, practitioners typically applied the IAS 19 discount rate and mortality basis to discount the net cashflows under a swap.This approach, combined with insurers’ pricing practices, tended to mean – particularly early on in the contract – that DB sponsors had to book the swap as a negative plan asset.However, since the introduction of IFRS 13, Fair-value Measurement, sponsors have been able to book longevity swaps at a value equal to or near to their transaction value.This new approach means sponsors need no-longer recognise a negative plan asset, removing a barrier to longevity swap transactions.The predominant accounting approach at the moment around longevity swap contracts has focused on the fair-value method.last_img read more

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Dutch should adopt principles-based funding framework: Aon Hewitt

first_imgA principles-based approach ought to replace the tight rules of the financial assessment framework in the Netherlands in order to create scope for innovation for a new pensions system, consultancy Aon Hewitt has argued.Speaking at a conference in Amsterdam last week, Frank Driessen, chief executive of Aon Hewitt Netherlands, contended that a one-size-fits-all system would not be the solution for the current multi-cultural society.An approach similar to that taken by the EU’s pension fund legislation, IORP II, would allow innovation for a new system, he said. In his opinion, a principles-based assessment framework would offer more potential to modernise defined contribution arrangements, such as lifecycle investments based on participants’ risk profile. Driessen’s vision of a new pensions system included the introduction of individual pensions accrual combined with collective investing – as is still being assessed by the Social and Economic Council – with participants choosing their risk profile.The consultancy’s CEO also argued in favour of employers being enabled to select their pensions provider rather than the current mandatory participation in sector pension funds.He said he was also in favour of allowing pension funds to pick their specific pensions contract.A “hard stop” for the old pension arrangements would be crucial for a transfer to a new pension contract in the Netherlands, Driessen also argued.  This would avoid discussions about who would fit the bill and problems in merging existing pension rights accrued under the current arrangements with new pensions accrual under a new pensions contract.  Driessen also warned that, after 10 years of what he said were fruitless discussions about a new pensions system, the risk was real that “emotions in society” could force pension funds to respond in some way.“We don’t want to end up in such a position,” he said.The Dutch government wants to introduce a new pension model in 2020, but many in the industry doubt this is achievable.last_img read more

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Better Finance slams ‘inadequate’ work from EU on online tools

first_imgEuropean investor lobby group Better Finance has urged the European Commission to develop an ‘action plan’ to help citizens with financial matters.Presenting its sixth annual research study on pension savings earlier this month, Guillaume Prache, head of the consumer lobby, called for the Commission’s Consumer Financial Services Action Plan to be extended beyond its existing “non-binding key principles for comparison tools”.The plan referred to “a lack of objective and credible information about available financial products”, while last year the Commission also mentioned the need to improve the quality of comparison websites and pledged specific action. However, a subsequent report from Deloitte Luxembourg on the project’s progress, released in April, did little more than repeat its previous position. The “study on the distribution systems of retail investment products” restated that investors faced huge challenges when collecting information, comparing data, or getting independent advice. The report added: “Recent EU legislation (in particular the MiFID II, PRIIPs and insurance distribution directives) should improve the functioning of the markets for retail investors.”Prache argued that progress so far had been inadequate, and called for citizens to be supplied with comparison data when making personal decisions related to their choice of pension options.Better Finance suggested other improvements to the EU pensions landscape included:disclosure of past performance for all long-term and retirement savings products;additional measures for European supervisors’ reporting “on the cost and past performance of the main categories of retail investment, insurance and pension products”; andending “biased advice at the point of sale”.The near-500-page research volume (Pension Savings 2018) again criticised low returns from investment products as “all too often dramatically underperforming capital markets”.The lobby group also warned that citizens saving “more and for longer periods” would still not address the issue of inadequate future pensions.Better Finance’s research has previously been criticised by members of PensionsEurope for “comparing apples and pairs” and for “substantial discrepancies and wrong interpretations” when analysing returns net of costs.last_img read more

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​Nordic roundup: Alecta ramps up robotics ahead of 2023 ITP bid

first_imgTotal assets under management rose to over SEK900bn (€85.6bn) for the first time, it said, with the increase a result of returns and positive inflows from contributions. At the end of March, Alecta was managing SEK877bn, with its DC product assets totalling SEK123bn and its DB product holding SEK782bn.PFA invests €180m in Dutch green bonds Sweden’s largest pension fund Alecta is increasing automation within its operations as it attempts to remain competitive in the next bid for default provider of the country’s supplementary occupational pension system (ITP).Announcing results for the first half of this year, the fund said under its development plan to win the next five-year contracts – dubbed “Alecta 2023” – it had set goals to offer long-term, strong returns and improve efficiency by, among other things, upping its use of technology.Chief executive Magnus Billing said: “In the first half of the year, we have, to name a few things, launched methods to measure and increase the degree of automation of different processes and we have also put a robot to work for pension calculations.”In the first half of 2019, the pension fund said its defined contribution (DC) product Alecta Optimal Pension generated a return of 11.8%, while its defined benefit (DB) product returned 8.5%. Henrik Nøhr Poulsen, PFA PensionPFA Pension, Denmark’s biggest commercial pension fund, invested over DKK1.3bn (€180m) in the recent Dutch government green bond issuance.The DKK575.8bn fund said the bonds would help the Dutch state achieve its climate goals and contribute to a green transition. Last month, Danish pension fund administrator PKA said it had put DKK1bn into the newly-issued securities.Henrik Nøhr Poulsen, PFA Pension’s CIO, said: “Green investments are increasingly in demand and are therefore expected to have a good potential for generating extra value on both the climate account and the pension savings.” The fund’s investments in renewable energy totalled DKK8.6bn last year. While the green bond market was still limited in relation to the global bond market, it continued to grow year on year, the Copenhagen-based fund said.“Sustainability and accountability have become an integral part of the way we invest,” Nøhr Poulsen added. “And in relation to the transformation that is currently under way to limit the temperature increases, it is important that we, as a long-term investor, make a positive contribution to the green transition and help to back up the Paris agreement and the UN’s world goals.”last_img read more

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​Swedish FSA pleads for transitional rules on IORP II due to COVID

first_img“It is therefore important that a legislative amendment comes into effect as soon as FI can decide on the cases before the turn of the year,” the authority wrote.In its initial assessment, FI said the applicants’ operations were basically sound, and in normal circumstances they would have good prospects in the long-term of meeting capital requirements.“However, due to the COVID-19 pandemic and the volatility prevailing in the markets as a result of the outbreak, FI sees a risk that one or some of the occupational pension funds may find it difficult to live up to set capital requirements at the time of FI’s decision about transformation,” it said.Overall, FI argued in the letter – signed by its chief counsel Eric Leijonram and senior lawyer Nanny Hiort, there were good reasons for introducing such transitional provision, because the regulation on occupational pension companies was well suited to the pension funds applying, and the funds were also deemed to be viable.“At the same time, the consequences that could arise if transitional provision is not introduced are significant since an occupational pension fund has to go into liquidation if an application for conversion from a subsidiary to an occupational pension company is refused,” FI wrote.The eight applicants for conversion to occupational pension companies are PP Pension, Pensionskassan SHB, Sparinstitutens Pensionskassa (SPK),  Försäkringsbranschens Pensionskassa (FPK), Svensk Handel, VFF Pension, Kåpan and Svenska Kyrkans Pensionskassa, FI confirmed.To read the digital edition of IPE’s latest magazine click here. Occupational pension funds in the process of converting to Sweden’s new IORP II regime could be liquidated unless certain transition rules are put in place, the regulator has warned, because the pandemic’s effects on markets might make them fail capital requirements.The Swedish FSA (Finanstilsynet, FI) has written to the Finance Ministry asking for transitional provisions to be added to legislation translating the EU’s IORP II directive into the domestic rulebook.The authority said it needs new legal wording added to allow it to approve the conversion of mutual benefit societies (understödsföreningar or pension funds) offering occupational pensions to occupational pensions companies (tjänstepensionsföretag) by the end of this year – even though some may not meet the capital requirements at that point.The watchdog was handling eight occupational pension funds’ applications for conversion to occupational pension companies in accordance with the IORP II Act (2019: 742), and all but one had asked for the conversion to take effect from 1 January 2021.last_img read more

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AREC 2019: Todd Duncan’s tips to survive a tough property market

first_img Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:51Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:51 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p432p432p270p270pAutoA, 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 Rate1xFullscreenStarting your hunt for a dream home00:51 “I’m going to be positive in a market where everyone else is negative,” he said.More from news02:37International architect Desmond Brooks selling luxury beach villa11 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days ago“It began attracting business to me like a bee to honey.”That became what set him apart and he encouraged agents, buyers and sellers to have a similar mindset, particularly in the current climate.“There’s very little difference in people but the little difference is the big difference,” he said, referring to a quote that helped guide him.“The little difference is attitude, the big difference is whether it’s positive or negative.”Duncan said attitude helped agents, buyers and sellers build trusting relationships with each other that would stand the test of time if nurtured long after the initial transaction.“Trust is your superpower,” he said.In part two of his presentation High trust selling: How to make more money in less time with less stress, Mr Duncan discussed the importance of developing an emotional connection with buyers and sellers.He said many agents focused too much on getting a sale instead of helping their clients getting the outcomes they wanted. Todd Duncan says the key to success in the property industry is trust and confidence. Supplied: McGrathTRUST and confidence are the key to tackling a tough property market, sales entrepreneur and best-selling author Todd Duncan says.He reiterated the words in his opening presentation of the Australasian Real Estate Conference at the Gold Coast Convention and Exhibition Centre on Sunday.Having entered the industry straight after graduating at the tender age of 23, he attributed confidence to not only his survival as a real estate broker in a “seemingly impossible market” but also his success.“I began to understand early on, this is not for wimps,” he said.He held his head high and wore a badge that said ‘rumour has it we’re in a recession, I’m not participating’ in a bid to show his commitment to help buyers and sellers find the home of their dreams.center_img jessica.brown@news.com.aulast_img read more

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Camp Hill contemporary transformation

first_imgThe house at 8 Indus St, Camp Hill, is for sale.IT IS difficult to believe this Camp Hill house once had a smattering of orange and pink throughout. BEFORE: The pool area was tidy but basic. BEFORE: The bathtub was lilac. BEFORE: Check out that orange!More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours ago AFTER: You would be forgiven for thinking this house was brand new.Instead, now it is a modern delight, with sleek timber flooring and clean, crisp walls.Scott and Annie Field bought 8 Indus St in 2011 as both a project, and a family home.Mr Field said it was quite the sight when they moved in. BEFORE: The exterior was dated. AFTER: There is now a bigger entertainment spaceVideo Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:51Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:51 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p432p432p270p270pAutoA, 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 Rate1xFullscreenStarting your hunt for a dream home00:51 AFTER: The bathroom is now clean and modern.They reconfigured a downstairs living area into two bedrooms and a rumpus room, as well as opening up a sunroom upstairs to become a balcony.Outdoors, the house was rendered and they renovated around the pool area, as well as installing glass fencing.They also painted inside and out and landscaped the gardens.Mr Field said the house had been great for a family, and they had enjoyed entertaining on the deck, out by the pool. AFTER: The new kitchen is sleek and crisp.“It had the original lilac bathroom, and pink carpet throughout the top level,” Mr Field said.“The bottom level had brown tiles with an orange kitchen … and orange walls in one room and pink in the other.”The Fields ripped up the carpet and vinyl flooring, polished the floorboards, and hired tradesmen to help with renovating the bathrooms.last_img read more

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More first home buyers are investing in this community

first_imgGrishma, her mother, and Pradeep Kharel. Photo: SuppliedYoung couples and families looking to buy their first home have their eyes set on Brentwood Forest at Bellbird Park.With property prices in Brisbane predicted to increase again by more than 5 per cent in 2020 the affordability of housing in the central suburbs of Brisbane may become harder to achieve for first home buyers looking to invest in property.Some buyers have found the solution in the outlying suburbs of Greater Brisbane, where the average home price is currently sitting at $528,000 – around $147,000 less than the median price in the Brisbane Local Government Area.AVID Property Group senior development manager Peter MacLeod said the master-planned community had received more inquiries from couples and families looking to buy their first home.More from newsParks and wildlife the new lust-haves post coronavirus12 hours agoNoosa’s best beachfront penthouse is about to hit the market12 hours ago“We are seeing more couples coming to Brentwood Forest in search of the stability that comes with home ownership – they are looking for a place to start and grow their family,” Mr MacLeod said.Grishma and Pradeep Kharel were renting in inner-city Brisbane when they decided the time was right to invest in their own home. They soon realised an inner-city home was not achievable with their budget and started looking into opportunities further away from the Brisbane CBD. “Before buying our home we had been renting less than 15 minutes from the city, but we couldn’t afford to buy a home there,” Ms Kharel said. “We had been looking at several different areas in the area, but Brentwood Forest in Bellbird Park stood out to us.“Brentwood Forest had great utilities and we actually loved the location – it was only half an hour from the city and close to schools, shopping centres and only a seven-minute drive to Springfield Central.”last_img read more

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CoreLogic Pain and Gain: more Gold Coast units selling at a loss

first_imgKnight Frank Queensland head of project marketing Chris Litfin said the data was surprising with apartments in the Gold Coast’s up-market areas selling strong. Mr Litfin also believed buyers and sellers now had an even playing field, particularly with the interest rate drop. “Buyers can be a lot more aggressive than they have been and unless they have a good reason to sell, sellers can sit on their hands,” he said. “Regardless of who is in the box seat, there are always good buys and those that aren’t so good.” The latest Gold Coast property health check is in and what is one person’s loss is another’s gain. Picture: Glenn HampsonBUYERS are back in the box seat as more Gold Coast properties sell at bargain prices. The March quarter CoreLogic Pain and Gain report showed 12.2 per cent of Glitter Strip dwellings traded for less than what they previously sold for, equating to a loss of more than $20 million. The average hold period for these properties was nine years, with a median loss of $38,000. The percentage of homes that resold at a loss was the highest it had been in almost three years. Resales of units have bore the brunt of the market downturn the most, with 20.8 per cent selling for less — a total loss of almost $16 million. MORE NEWS: First look inside Hemsworth mega mansion Mr Newlands said houses had remained stronger due to supply and demand and felt the figures were tipped to change. “We are going to see a solid market with moderate growth,” he said. More from news02:37International architect Desmond Brooks selling luxury beach villa10 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag1 day ago“We are positioned far better on the Gold Coast than other markets nationally.” Despite the losses, the March quarter still had some big profit making deals with 87.8 per cent of sales adding a healthy median gain of $133,000.Overall, sellers pocketed $464 million in the three months to March, but this figure is down on the $529 million gained in the same period last year. CoreLogic research analyst Cameron Kusher who conducted the report. Picture: David ClarkReport author and CoreLogic research analyst Cameron Kusher said most major coastal markets across Australia had experienced the pain. “Although the proportion of loss making sales has increased in most of the regions, resale losses generally remain at quite low levels,” he said. “Both dwelling types are seeing the rates of ‘pain’ results climbing quite rapidly but units continue to be much more likely to resell at a loss than houses.“The share of Gold Coast dwellings resold at a loss is now the highest it’s been since May 2016.” Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:25Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:25 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD576p576p432p432p288p288pAutoA, 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 Rate1xFullscreenDavid Koch puts property price falls in perspective01:26 mikaela.day@news.com.au In the March quarter 12.2 per cent of properties resold at a loss. Picture: Richard GoslingBut what was a loss for vendors meant buyers gained, according to REIQ Gold Coast zone chairman John Newlands.“The market has certainly contracted in those particular months due to fewer buyers in the marketplace and tighter credit regulations making it harder to get finance,” he said. “The buyers that have been purchasing have been very cautious and trying to get extremely good value for money. “Where sellers have needed to sell, for one reason or another, they might have chosen to sell at a loss to move onto something else.” MORE NEWS: Shabby beach shack draws in mega bucks last_img read more

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