Dutch schemes’ recovery stalls as funding plateaus at 109%

first_imgMercer said that the coverage ratio drawn from market rates – 107% at the end of August – hadn’t changed either in the past few months.The consultancy noted that the 30-years swap rate – Dutch schemes’ main criterion for discounting liabilities – had fallen by five basis points to 1.47%, leading to a 0.8% rise in liabilities.Aon, which took the overall swap rates into account, came out with a liabilities increase of 1%.Frank Driessen, executive chairman at Aon Retirement and Investment, said the stalling recovery further increased the pressure for a new pensions system in the Netherlands, in particular because rights cuts at the large pension funds were still a possibility in 2020 and 2021.Dutch pension assets increased by approximately 0.3% on average in August, Aon reported.According to Mercer, based on the MSCI World index, worldwide holdings of developed markets equity gained 1.9% during the month, aided by a 50% hedge of the dollar, the pound and the yen. Without such a currency hedge, the increase would have been 1.6%.The pensions adviser reported a 2.1% decline from emerging markets stock as a consequence of unrest in Turkey, Argentina and Brazil. Euro-denominated government bonds lost 0.6%, while and corporate bonds edged up by 0.1%. Pressure is growing in the Netherlands for unions, companies and the government to agree on pensions reform as benefit cuts are a growing prospect at several schemes.The average funding ratio of Dutch pension funds failed to improve in August, stalling at 109% according to consultancy groups Mercer and Aon Hewitt.Both companies reported in monthly data updates that a limited increase of liabilities in the wake of a drop in interest rates had been almost fully compensated by returns on investments.Last May, Dutch schemes’ funding – calculated as the average of pension funds’ monthly coverage ratios, with the application of the ultimate forward rate, during the past 12 months – stood at 108% on average.last_img read more

Compensate younger members for subsidising retirees: Swiss consultancy

first_imgIn pension funds without surplus assets, the high conversion rate has led to cross-financing of pension payouts from active members’ assets. In addition, the same active members are expected to retire with a lower conversion rate – meaning lower pension payouts.“One generation financing the other because returns are too low is not intended but necessary to a certain extent because otherwise we would have to amend the conversion rate every year,” Baumann said. Instead, he suggested allowing variable pension payouts above a certain minimum income threshold, a subject gaining interest in Switzerland after last year’s move to grant more investment choices and variable pensions for so-called “1e plans” for higher earners.Baumann emphasised that “solidarity was the spine of the second pillar”, without which supplementary pensions could be organised privately via insurers.At the VPS conference, Patrick Spuhler, founding partner of pension consultancy Prevanto, said it could make sense to have a different conversion rate for women. Despite the fact that women live longer, they usually “cost less” after they have died as their husbands more often than not have died before them.“With men, marriage is ‘worse’ for pension funds as they usually have younger wives who are eligible to a widow’s pension,” Spuhler observed.He cited statistics that showed both married men and women live longer than the average after age 65, but life expectancy has improved the most for divorced retirees.While delegates at the conference agreed it might not make sense to have different conversion rates for different situations, Spuhler argued that trustees should still “know about solidarities as well as cross-financings happening within a pension plan and manage them”. Swiss pension funds should consider measures to compensate members that are missing out due to the country’s high minimum conversion rate, according to consultancy c-alm.Switzerland has twice failed to pass measures lowering the conversion rate, which is used to calculate pension payouts from accrued assets in the mandatory part of the second pillar. The rate is currently 6.8%, but experts have argued that it should be well below 6% given the low interest rate environment and expected weaker investment returns.“A Pensionskasse should know the history of the separate generations of retirees and allocate free resources to create compensation for those that do not profit,” argued Roger Baumann, partner at c-alm, during a seminar for pension fund representatives organised by the VPS publishing group in Zurich.He added: “A general approach no longer makes sense as we have seen major differences before and after the crisis.”last_img read more

Actuaries call for pension benefit simplification to aid consolidation

first_imgUK actuaries have called for the country’s benefit system to be “radically simplified” in order to cut costs and make transfers and consolidation simpler.The Association of Consulting Actuaries (ACA) has published a report in partnership with insurance company Royal London proposing the introduction of a “pensions pound” – a way of standardising various forms of accrued defined benefit (DB) rights into one format.Steve Webb, director of policy at Royal London and former pensions minister, has previously voiced support for a similar concept. He said there was “a huge prize to be had if the complexity of individual pension rights could be turned into a set of standardised rights of equivalent value”.“This would mean less money was spent running schemes and explaining complexity and could pave the way for greater understanding and better value for money,” Webb added. “This should be part of the government’s forward agenda.” UK DB schemes often have several different sections relating to different rates of accrual or indexation, as a result of rule changes or corporate mergers or acquisitions.The ACA and Royal London’s report outlined how benefits could be converted to a common standard “on an equivalent actuarial basis… using a set of suitable forward-looking assumptions”.The model included moving benefits to a single standard for indexation, which the report said would mean that “initial pensions for many members will be higher than at present when they come into payment” – implying higher liabilities for some schemes.Its authors acknowledged that the concept would need to be “carefully designed” to ensure it did not change members’ benefits adversely. It would also mean changes to the level of compensation provided by the Pension Protection Fund when a DB plan sponsor becomes insolvent. However, the report argued that the challenges were worth overcoming as the standardisation would aid several government and industry projects, the report said, including the pensions dashboard and DB plan consolidation.The report also claimed the cost of running a DB scheme could be reduced by as much as 50% in some cases through lower administration costs.“Ranking pension rights by their value in pension pounds would help people compare their rights under DB, [defined contribution] and state pension systems,” the report said. “This could be useful in presenting information via a ‘pension dashboard’ and will help members understand potential savings gaps.”Faith Dickson of the Association of Pension Lawyers, which gave legal guidance on the report, said: “It’s so important for schemes to be able to focus on member security rather than complex administration, and pension simplification would be a huge step towards achieving this.“Preserving historic complexities of pensions as we are doing now is doing members no favours, when simplification would provide the same value benefits and let schemes focus time and money on the best way of securing those benefits for the same value and let schemes focus time and money on the best way of securing those benefits for them.”The report is available here.last_img read more

German chemicals company de-risks with lump sum payments

first_imgTwo in five workers at German chemical and consumer goods company Henkel have accepted an offer to have their minimum-guarantee pension converted into a fixed lump-sum payment.Speaking at the Handelsblatt conference on occupational pensions in Berlin earlier this month, Martina Baptist, head of pension management for Germany and Switzerland at Henkel, said half of retirees with pension levels of €200 a month or less took the offer of converting their guaranteed pension income to a lump-sum payment, when the offer was introduced in 2015-16.Since 2017-18 the company has been making a similar ‘buyout’ offer to employees covered by Henkel’s AV 2004 pension plan.Their basic pension, including an average guaranteed return, was converted into a guaranteed lump-sum payment upon retirement to buy out their “past services” accrued in the plan. As for their “future services”, Henkel pays contributions to a defined contribution (DC) plan with a minimum guarantee of these payments and any contributions made by the employee – mostly via deferred income, known as Entgeltumwandlung. Credit: Dietmar GustMartina Baptist explains Henkel’s long-term pension de-risking planSo far, 40% of a selected group of employees at the lower income end have accepted the offer, Baptist said. The company plans to roll out the offer to other employee groups all over Germany over the next few years.“The other employees are actually expecting to be offered the buyout,” Baptist said. She did not say whether this would also include senior-level staff.Long-term de-riskingIn a bid to reduce its pension liability risk, Henkel has taken various steps over the past two decades – including the introduction of a new pension plan, AV 2004, to replace its pure defined benefit (DB) plan.The new plan consisted of a basic pension element with a guaranteed return of between 3% and 6%, with a top-up payment into a pure DC “building block”.In 2004, existing employees were urged to join the new scheme – sometimes by “linking promotions to people agreeing to being bought out of their old pension contracts”, according to Baptist.This buyout solution is now a key element in Henkel’s bid to further reduce its pension liability risk.The AV 2004 plan was closed to new entries in 2011 when a DC plan with a guarantee on contribution levels was introduced for new employees.Since then, the company has rolled out a campaign, dubbed “capital instead of pension”, to encourage more of the company’s 5,000 employees and retirees still covered by AV 2004 to switch to a one-off payment.Positive responsecenter_img Credit: Dietmar GustMercer’s Stefan Oecking addresses the Handelsblatt conferenceStefan Oecking, partner at Mercer, which helped implement Henkel’s buyout exercise, said in his presentation at the Handelsblatt conference that a comprehensive information campaign was part of the buyout scheme.“There was both individual information as well as group events, and people get a reminder on their choice before the offer expires,” he said.He said many employees “find the offer very attractive”, mainly because the lump sum can be bequeathed, while accrued pension rights cannot.In addition, the payment is guaranteed if the employee becomes disabled or ill, and can be paid out in installments or used to buy an annuity.Baptist is convinced a lump-sum payment on retirement “is also a better fit for people who are planning to move abroad after retiring or want to buy a house”.At the Handelsblatt conference various major German companies presented their de-risking plans for in-house pension plans – but Henkel is the only one with a major buyout scheme.In Henkel’s 2018 annual report, pension obligations were the only “high risk” status category, apart from macroeconomic challenges.As per year-end 2018, Henkel’s DB obligations for its German plans amounted to €3bn, while plan assets stood at €2.7bn. A decade ago, liabilities were €1.8bn and plan assets were €1.5bn.last_img read more

Willis Towers Watson turns its back on managers on culture grounds

first_imgFortunately, according to Nikulina, there had recently been a shift in mindset in the investment industry towards a team-oriented approach, although taking advantage of this model was not straightforward.“It requires a lot of self-awareness and humility from the leadership to be able to take the benefit of the team approach,” she said.In addition to culture, WTW engages with asset managers on inclusion and diversity, and sustainable investment.“The investment industry is very non-diverse,” said Nikulina, showing a snapshot (pictured below) of an analysis of some of the consultancy’s preferred managers for its best ideas fund.“Orange means [there is] zero-diversity, and as you can see there is too much orange on this page despite the fact that we have been specifically focussing on trying to bring more diversity into the teams that manage our portfolios,” she said.WTW asset manager diversity analysis Willis Towers Watson has downgraded eight managers and “walked away” from five investment ideas for reasons related to culture within their organisations.The decisions were made as part of a culture assessment of the consultancy’s highest conviction managers, which it nearly two years ago, said Luba Nikulina, global head of research at Willis Towers Watson.“An underlying trend was concern about dependency on one individual who has too much power, or to put it more bluntly, a personality cult,” she said at an event held this morning by the Thinking Ahead Institute, whose work has informed WTW’s asset manager research.“A team approach is what can make a better investment organisation,” added Nikulina. In addition to becoming more diverse, asset managers needed to take care to create an inclusive environment.“That’s the only way you can take advantage of these diverse perspectives and let this diverse talent flourish,” said Nikulina.Thumbs up for extra-financial motivesWith regard to sustainable investment, she said WTW’s beliefs had become much stronger recently, noting for example that the consultancy believed that “extra-financial motives play a meaningful role and should be considered by investors”.“Successful investment organisations must articulate purpose,” she added, specifying that this should extend to the benefits they bring to “clients, employees, society and planet”.Stewardship, meanwhile, was “an opportunity for the investment industry to redefine its purpose and demonstrate its value to society”.“There is too much time spent in our industry on financial analysis and modelling and not enough on stewardship and actual value creation,” said Nikulina.She praised the UK’s new Stewardship Code for paying attention to purpose, beliefs and culture.last_img read more

Strathclyde ups cash balance in case of COVID-19 interruption

first_imgStrathclyde’s cash balance at the end of its 2019 financial year was £58.8m. By way of comparison, the cash balances of Lothian Pension Fund, the second largest local government pension scheme in Scotland, had group cash balances of £39m as at 31 March 2020.Strathclyde’s total investment return for the year to 31 March 2020 was -3.5%, with most of the loss coming from equity portfolios (-6.3%).There were sharp falls in some other portfolios – -20.4% in emerging market debt and -15.5% in multi-asset credit – although the pension fund said its non-equity investments “held up reasonably well”, with UK property returning 2.5%, global real estate 11% and global infrastructure 3.7%.Although Strathclyde’s three and five-year annualised returns “comfortably” exceeded its benchmark, the pension fund highlighted that the three-year figure of 2.7% was less than the actuary’s long-term assumption of 3.5% per annum, and would therefore have a negative impact on the actuarial valuation to be carried out with a strike date of 31 March.New investment structure implementedStrathclyde has been pursuing a strategy of greater diversification over the past several years, and in its annual report said that during 2019/20 it had implemented an investment structure “consistent with” the new strategic target model it had agreed in 2018.Called “Step 2”, the model involves a 20% target allocation to two “enhanced yield” buckets – one short-term and one long-term – plus a 52.5% allocation to equity, a 1.5% hedging/insurance allocation and a 6% credit allocation.The pension fund said funding of a new private real estate debt mandate with ICG Longbow, and of three new segregated private corporate debt mandates with Barings, Alcentra and Partners Group commenced in the year under review, and would show up in the amount invested in the short-term enhanced yield bucket over the next two to three years.Looking for IPE’s latest magazine? Read the digital edition here. Strathclyde Pension Fund, Scotland’s largest local authority pension fund, topped up its cash balances to prepare for any COVID-19-linked interruption in income from employers, according to its unaudited annual report.The report indicates the top-up, which was a transfer from its investment balances, was for £100m (€84m).The £20.9bn pension fund said the transfer was “to ensure ample cover for pensions payments in the event that income from employers is interrupted as a result of coronavirus precautions in the new financial year”.It said it contributed to an “unusually high” cash balance of £195m as at 31 March 2020, the end of its financial year, alongside a contributions payment in respect of backdated equal pay settlements and a bulk transfer payment.last_img read more

​Tangen kicks off NBIM re-shuffle with ‘special’ role for Kallevig

first_imgUp to now, Kallevig has been CIO real estate at NBIM, a role he took on in April 2019 after the separate unit he ran for many years, Norges Bank Real Estate Management (NBREM), was liquidated and its operation integrated into NBIM.Tangen, who replaced Yngve Slyngstad as CEO at the beginning of this month after much political wrangling over his appointment, said: “I am pleased to have Karsten in a more strategic role.He has built a high-quality organisation over the past decade and carries with him valuable investment experience which will benefit us going forward.”Meanwhile, NBIM said it is carrying out an internal process to recruit a chief real asset officer – a new role – and that Kallevig would be working closely with that person.Having long recommended expanding the GPFG’s mandate to include investment in unlisted infrastructure as well as unlisted real estate, NBIM received the go-ahead from the Finance Ministry in April 2019 to invest up to 2% of the fund’s value in unlisted renewable energy infrastructure via the fund’s existing dedicated environmental mandates.Kallevig said he was “very proud of what we have achieved over the past decade”.“The organisation is well positioned for the future and I look forward to acting in a different capacity going forward,” he said.Having worked for many years in London and then Tokyo, Kallevig first came to NBIM 10 years ago as global head of real estate asset strategies.Looking for IPE’s latest magazine? Read the digital edition here. The newly-installed head of Norway’s NOK10.2tn (€968bn) sovereign wealth fund has made his first change to the organisation’s management line up by removing Karsten Kallevig, who built up the oil fund’s NOK295bn portfolio of unlisted real estate, from the leadership team.NBIM also said its new leader group was scheduled to be announced in October, suggesting further changes are afoot.Norges Bank Investment Management (NBIM), which manages the Government Pension Fund Global (GPFG), announced that Kallevig has been appointed special adviser to chief executive officer Nicolai Tangen, with a focus on real asset matters.“Kallevig will step out of the leader group and looks forward to contributing in a new role,” the central bank division said in a statement on Friday afternoon.last_img read more

Sleek lines and waterfront views in modern marvel

first_imgThe builders crafted a design for great potential to catch the views.More from newsLand grab sees 12 Sandstone Lakes homesites sell in a week21 Jun 2020Tropical haven walking distance from the surf9 Oct 2019The home has three storeys, all designed with plenty of space to embrace views of the water.To top it off, the roof has a deck with views of the nearby water.“It is pretty much a 270-degree view of Bribie, right around the marina and to Moreton Island,” she said. 6 Fourth Avenue Scarborough 3D floor planThe house has what Mrs Tremble described as a modern and sleek style.It took about five months for the couple to build the home. Ideal for summer.The home is on the market now. Modern living inside and out.To take advantage of the location, which is in one of the northernmost points on the Peninsula, they decided to build up.“We played around with designs that suited the block,” she said The home is split on three levels.It has high-end features including high quality bamboo flooring, dual island kitchen benches and high ceilings in the living area. “I guess it would really suit professional families or retirees,” Mrs Tremble said. “It could suit a whole range of people.” SCENIC: The designers wanted the perfect home to take advantage of the view.AN EMPTY block of land in one of the best spots in the Redcliffe Peninsula was an opportunity Emma and Terry Tremble could not pass up.The couple had renovated a few houses before, but when they saw the empty 405sq m block they decided it was time to build something from scratch. “We wanted a house that really complemented the area and took advantage of the views and the location,” Mrs Tremble said. The home is just a quick walk from the waterfront.“The main thing I like about it is that the separate levels all have different purposes,” she said.“The bottom level is for the car garage and storage, (the second level) is the main entry off the street and is the living and entertainment space.“And the next level is for all the bedrooms, keeping it private.”last_img read more

Super sale: Queensland town listed for just $500,000 set to be sold

first_imgSUPER SALE: The Queensland town that was listed for just $500,000 looks set to be sold.THE Queensland town that was for sale for less than the price of an average Brisbane home looks set to be sold.The entire township of Allies Creek was under offer just days after it was listed for the bargain basement price of $500,000.Agent for the sale Danielle Meyer said someone from regional Queensland placed an offer shortly after the extraordinary listing went live earlier this week.RELATED NEWS: ENTIRE TOWN FOR SALE FOR PRICE OF AVERAGE HOUSE OTHER NEWS: QUEENSLAND’S CHEAPEST HOUSE SOLD FOR $25KIf you don’t like this house don’t worry, the town has 11 more.The would-be buyer had not even visited the town for an inspection before they put in the offer.The listing, which was for the town, its 12 houses, tennis court, helipad, dam and 14 hectares of land, created a lot of interest across Australia and around the world.The homes are all in pretty good nick. Image form RealEstate.com.au“I had people call from England, from New Zealand and all over Australia,” Mrs Meyer said.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 small town, which is 373km northwest of Brisbane, was originally built to house workers of a timber mill.The timber mill closed down in 2008.Current owner Natali Williams bought the town about eight years ago with her husband and planned to turn it into a caravan park.After her husband passed away she put the property on the market, originally with a price of $2.1 million in 2015.The price was lowered a number of times after its initial listing, but it failed to find the right buyer.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 6:36Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -6:36 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p216p216p180p180pAutoA, 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 Rate1xFullscreenLiz Tilley’s prestige property wrap 06:36This week it received another price reduction to just $500,000.“I think it would be the perfect place for someone that thinks outside of the box,” Mrs Meyer said.You could put in a tourist park or a getaway retreat or a wellness spa.”The town is 373km northwest of Brisbane and about 60km south of Mundubbera.She first visited the town last week and said she was very impressed by what she saw.“I thought I was going to see something that was very run down, but I couldn’t believe the houses were so well maintained,” she said.The homes have electricity, water, and the sale even includes a tennis court, helipad, the former church and the former timber mill.A number of the homes are currently rented out to people that work near the area and like the quiet lifestyle.last_img read more

Buyer registers to purchase just as the hammer was about to fall

first_imgAcutioneer Peter Burgin from Place, Wooloongabba. 130 Morehead Ave, Norman Park up for Acution. Saturday July 21, 2018. (AAP image, John Gass)MORE than 50 people turned out to see 21 Clyde Rd, Herston sell under the hammer to a last minute buyer yesterday.GOING GONE: 21 Clyde St, Herston sold to a last minute buyer for $1,150,000.Sunshine Biskaps purchased the property for $1,150,000 after she decided during the auction this was the home for her.“I was on realestate.com.au and I heard this area is really nice so I thought I’d check it out, it’s my first day in this area,” Ms Biskaps said.“I just walked in about 10 minutes before the auction and it shows really nicely.“I just really like tall ceilings and the way it feels like a home.”She said she was really excited to now call Herston home, having moved to Australia from Jakarta with her husband a few weeks ago.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality LevelsAudio TrackFullscreenThis 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 Rate1xFullscreen00:00The property was refurbished as part of a bigger development, according to auction attendee and project manager Ross Muirhead.“We did a change to an existing DA on this one … it was about eight months for the construction, including the (three) townhouses at the back,” Mr Muirhead said.“Out of the ceilings I think we only lost one, so basically all the ornate ceilings and things like joinery remains the same, french doors, as many windows as possible we could keep and the floors are original.“But it was fitted out with all the mod cons of zoned airconditioning and things that you need these days.”Mr Muirhead said two of the three townhouses were also under contract.“It’s a great little development; it’s hard to get land in this area, really hard.”Winners at the Norman Park auction Gary Sones, Holly Leybourne and Craig Hauser. Saturday July 21, 2018. (AAP image, John Gass)Place Bulimba lead agent James Curtain’s listing at 130 Morehead Ave, Norman Park sold for $1,240,000 under the hammer yesterday.Bidding started at $1 million, with three registered bidders raising their paddles to buy. The property was announced on the market at $1,150,000, and two of the bidders continued to fight it out until the property sold to Gary Sones, Craig Hauser and Holly Leybourne.More from newsNew apartments released at idyllic retirement community Samford Grove Presented by Parks and wildlife the new lust-haves post coronavirus17 hours ago130 Morehead Ave, Norman Park up for Acution. Saturday July 21, 2018. (AAP image, John Gass)Mr Sones said they would redevelop the property into two homes on 500sq m land and then present them to the market in about a year’s time.Ray White chief auctioneer Mitch Peereboom said the start to new financial year had been very exciting, with three standout sales yesterday.Ray White Alderley director Andrew Cowan’s listing at 76 Alderson St, Newmarket sold under the hammer for $585,000.It was the second most viewed auction property on realestate.com.au last week and Mr Peereboom said about 50 people turned out to see three bidders vie to buy the home.>> FOLLOW EMILY BLACK ON FACEBOOK<<“That was entry level buying for a property, for a house, so a lot of people think it was really good value,” he said.“The buyers were a young couple and they will be renovating it and having their family home there.”Ray White Graceville sales executive Douglas May’s listing at 37 Evadne St, Graceville sold for $1.4 million at its 11am auction.“There we had four registrations, it started at $1.1 and got to $1.4 pretty quick and sold,” Mr Peereboom said.He said Ray White Forest Lake principal Thanh Ngo’s listing at 4 Nuthatch St, Inala was another great entry level buy, selling for $350,000 under the hammer.“We had six registered bidders and a good result on that,” he said.“People are seeing value in a market place that’s going to have capital growth.”Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality LevelsAudio TrackFullscreenThis 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 Rate1xFullscreen00:00last_img read more