Stress tests thwarting German schemes’ equity investments, experts warn

first_imgSolvency “stress tests” required by law are preventing German pension funds from increasing their equity investments, industry figures have warned.According to legal investment limits, Germany’s largest Pensionskasse – the BVV, for banks and the financial services industry – is allowed to invest up to 35% of its assets in equities.Yet BVV managing director Rainer Jakubowski, speaking at the Handelsblatt annual conference in Berlin, pointed out that the scheme was not even allowed to maintain a 27% equity allocation, due to additional regulations.According to German risk-management rules, Pensionskassen have to demonstrate their solvency using a stress test, which caps the amount of risk the institution can take in equities. “This stress test, which was put in place in 2004, forces us into a relatively low equity allocation, which I think is [fundamentally] wrong,” Jakubowski said.He said that, if he had more freedom in terms of asset allocation, he would “do some things differently”.Hans Dieter Ohlrogge, chairman of the board at the IBM Pensionsfonds and Pensionskasse, agreed that the stress test was “a problem” because “it prevents a sensible real asset allocation in most cases”.At IBM, he “has more freedom than others”, he said, both in the Pensionsfonds, as this is less regulated, and in the Pensionskasse because the plan sponsor has an obligation for top-ups.“We have a higher real asset allocation than the average Pensionskasse, and we can cope with the volatility,” he added.Ohlrogge argued that regulations should provide more freedom on the liability side – by allowing temporary underfunding, for example.“But current regulation goes exactly the opposite way,” he said. “Pension funds are being driven into higher volatility and higher-risk investments because of the low interest rates, but institutions are not handed any instruments to handle the higher volatility.”Together with a shrinking discount rate in many cases, the capacity to bear risk is also lowered, which, in turn, drives institutions into non-returning asset classes – “a vicious cycle”, he said.“Eventually,” he added, “contributions have to be increased, which makes retirement provision unattractive. In fact, we are in an environment in which occupational pensions are being strangled.”Jakubowski said institutions were now being driven by continuous mark-to-market assessments, often resulting in poor asset allocation decisions.“We need the political understanding that the artificially created low interest rate einvironment is making retirement provision more difficult and that counter measures are needed,” he said.He added that, should the low interest rate continue for much longer, German pension funds would have problems achieving their minimum guarantees, as institutions are “punished by the supervisory body” for investing in most asset classes returning 3-4%, which is roughly the guarantee level.last_img read more

Low bond yields trigger review of Norwegian oil fund’s equity allocation

first_imgNorway’s NOK7.1bn (€733bn) sovereign wealth fund may see its exposure to equity increase beyond its current 60% allocation, after the government commissioned a review of its exposure to listed stocks.The Norwegian Ministry of Finance has asked a nine-strong committee, chaired by Knut Anton Mork, long-standing chief economist of Handelsbanken, to review the Government Pension Fund Global’s (GPFG) approach to equity investment, citing concerns the fund’s current exposure to fixed income no longer reduces volatility.The committee will also include a number of academics, financial markets experts and Sigbjørn Johnsen, a member of the opposition Labour party who has twice served as Norway’s finance minister.Setting out the review’s terms of reference, the ministry noted the current low-bond-yield environment across both short and long-dated debt. “The scope for further bond price gains is now limited by the low bond yield level, whilst the scope for price losses in the event of increasing bond yields are considerable,” it said.The committee, which will report in October this year, will review the expected risk stemming from, and return potential of, equity exposure other than the current 60% strategic allocation, and recommend any changes to the target.“In assessing the equity portion, the committee shall, inter alia, consider the fund’s objective, time horizon and size,” the ministry added, “as well as expected outflows from the fund.”The review comes shortly after the Norwegian government was urged to expand the GPFG’s investment remit to include infrastructure and a potentially increased exposure to real estate, currently capped at 5% of fund assets.As a result, an increase in the fund’s equity exposure is far from certain, due to the potential for its real estate exposure to rise and the possible introduction of a standalone infrastructure allocation.The sovereign fund currently accounts for a significant minority of government expenditure, around one in eight kroner spent annually, despite yearly drawdowns being limited to 4% to avoid its depletion.Any change in strategy is unlikely to be implemented for at least a year, as the government said in a statement that it would only address the matter of a revised equity exposure when the fund’s annual report was submitted to Parliament in spring 2017.At the end of September last year, 59.7% of the fund was invested in equities, 37.3% in fixed income and the remaining 3% in real estate.The fund’s current 60% exposure to equities has been in place since 2007, while the 5% target allocation to real estate was announced in 2008.last_img read more

ABB pension chief Bourqui to join CalPERS

first_imgElisabeth Bourqui collects the Pension Fund Achievement of the Year award from Mesirow Financial’s Joseph HoffmanBourqui spoke to IPE in 2015 about ABB’s investment strategy for How We Run Our Money. Elisabeth Bourqui, head of pension assets and liabilities management at ABB Group, is to join the California Public Employees’ Retirement System (CalPERS) next month.The $351bn (€283bn) US pension fund announced on Friday that Bourqui would take over as its new chief operating investment officer from 14 May.At ABB, a Swedish-Swiss technology multi-national firm, Bourqui oversaw the implementation of an innovative risk management system across its roughly 100 pension funds. She collected the Pension Fund Achievement of the Year award at IPE’s Annual Conference and Awards in Prague in November last year. In a statement announcing Bourqui’s appointment, CalPERS said she would be responsible for the “business and operations functions” of the fund’s investment office, which is led by CIO Ted Eliopoulos. The role would include management of investment compliance, operational risk, and audit-related functions. “Elisabeth brings a tremendous depth of global experience to CalPERS,” Eliopoulos said. “Elisabeth will strengthen our efforts to innovate, and to integrate business practices across our global investment platform. She will also be instrumental in the implementation of business strategies particularly in private equity and asset allocation.”She replaces Wylie Tollette, who left CalPERS in December to join Franklin Templeton.Prior to joining ABB Group, Bourqui was an investment consultant at Mercer. She is a member of the Swiss Society of Actuaries, and has a PhD in mathematics and financial mathematics from the Swiss Federal Institute of Technology in Zurich.last_img read more

Bosch’s cross-border plan thwarted by regulatory hurdles

first_imgHowever, after several months of planning, including feasibility studies on how the German Pensionsfonds could operate cross-border, Bosch decided to put the project aside.“We wanted to create a harmonised pension provision for all affected subsidiaries in Austria, funded by the Bosch Pensionsfonds,” a spokesperson told IPE.“It has always been our aim to go cross-border. Starting the project in Austria seemed reasonable to us, not least with regard to good preconditions. Nevertheless, we had to postpone the project because of regulatory hurdles, which makes cross-border activities considerably more challenging than it should be.” BVK and Bosch accept the award for best pension fund in Germany at the IPE Awards in Dublin in December 2018.L-R: Michael Gradl, BVK; Thomas Adler, Invesco; Dirk Jargstorff, Bosch; Hans Rübel, BoschVBV is a multi-employer pension provider and the largest scheme in Austria. At the IPE Awards in Dublin in December, the scheme was presented with the award for best pension fund in Austria jointly with APK Vorsorgekasse.Bosch’s German pension plan has €3.5bn in assets. It received the IPE award for best pension fund in Germany in December, taking the prize jointly with BVK.Bosch pension director Dirk Jargstorff will reveal details of the process and the hurdles the company encountered in an article in the September issue of IPE. German engineering firm Bosch has transferred its Austrian pension plan to the €10.4bn VBV Pensionskasse after regulations stopped its initial aim of consolidating funds in Germany.At the end of 2018, Bosch decided to consolidate its existing pension plans and to implement a new defined contribution pension plan, covering approximately 2,000 employees of various subsidiaries in Austria.The company initially intended to fund pension obligations through a company-owned Pensionsfonds vehicle domiciled in Germany.last_img read more

Scope of Norway’s SWF oil divestment shrinks still further

first_imgThe Norwegian finance ministry has approved the plan for the Government Pension Fund Global (GPFG) to divest oil stocks, but the latest plan involves the cull of considerably fewer stocks than those earmarked for exclusion seven months ago.The ministry announced late yesterday: “The decision to phase out upstream oil and gas companies from the GPFG shall apply to companies classified as ‘Oil: Crude Producers’ by the index provider FTSE Russell.” The sub-sector is to form part of the FTSE Global All Cap index after September 2020 following changes to FTSE Russell’s classification system.The finance ministry’s decision followed up parliament’s endorsement of the proposal to omit upstream oil and gas companies from the fund’s benchmark and investment universe, it said. The phase-out — which the ministry and the fund’s manager Norges Bank Investment Management (NBIM) have made clear is aimed at protecting the country’s overall wealth from oil-price risk and not being done for climate reasons — will be made gradually over time, the ministry said.The ministry has taken the advice from NBIM in its letter of 11 September. In the letter, the manager advocated defining the upstream companies to be divested as those contained in the new ‘Oil: Crude Producers’ sub-sector. From NOK300bn to NOK50bn The ministry said that as of mid-September, 95 companies in this new sub-sector were in the fund’s benchmark.These made up about 0.8% of the GPFG’s benchmark for equities, corresponding to about NOK54bn (€5.4bn) at the time, it said, adding that there may be some deviations between the fund’s benchmark index and actual investments.The list of 95 companies compares with the 150 firms the ministry listed back in March as the fund’s equity holdings that were categorised by FTSE Russell as exploration and production companies within the oil and gas sector category.Back in March, NBIM said that according to the FTSE definition, the fund held “Exploration and Production” companies worth approximately NOK66bn at the end of 2018 – corresponding to 1.2% of the fund’s equity holdings.The latest reduction in the scope of the divestment brings the planned investment exit even further from the recommended sell-off of more than NOK300bn (€31bn) of oil and gas equities that was originally proposed in November 2017 by NBIM.The total divestment may now be around the value of the GPFG’s holding in Royal Dutch Shell, which was worth NOK51.3bn at the end of 2018.The upcoming classification “Oil: Crude Producers” was defined by FTSE Russell in July as “companies engaged in the exploration for and drilling, production, and supply of crude oil on land”.Firms primarily exploring and drilling for oil and gas in offshore areas are included in a separate category.The finance ministry said it had now sent a letter to Norges Bank with suggested specific changes in the management mandate for the GPFG, and outlined how the unwanted exposure would be shed in practice.“By using the index provider’s classification, the GPFG’s benchmark index and investment universe will continuously be delimited towards upstream oil and gas companies, including corporate events, new listings and new information on or changes in companies’ activities over time,” it said.last_img read more

QLD homes were the hottest in the country this week

first_imgThis Bridgeman Downs property has subdivision potential.A four bedroom home at 63 Mars Street, Coorparoo, was the third most viewed in the country over the past seven days.It has a land size of 948 sqm in a leafy enclave, backing directly onto an expansive nature reserve. The house has its own private jetty.Agent Emil Juresic of NGU Real Estate had it listed as “Raby Bay’s masterpiece”.“You’ll spend many days relaxing poolside while the kids splash in the pool or paddle off your very own private jetty. The 1,254 sqm block also offers beautiful gardens you can explore, plus water features for complete relaxation,” was how it was described in the listing. The Raby Bay home design is striking.Among the features of the waterfront home at 27 Piermont Place, Raby Bay, were open plan living areas, large alfresco dining, an outdoor kitchenette with bar fridges, an infinity pool on the water side, a massive parents’ retreat, LED ceiling lighting, a practical butler’s pantry and Miele kitchen appliances. 334 Bridgeman Road, Bridgeman Downs Qld 4035.Among its charms were a self-contained guesthouse, second access to the huge 2.5 acre block for future subdivision potential, a saltwater inground pool, 2.7m high ceilings, a 5.64kw solar power system, two solar hot water systems and water tanks that can hold 66,000 litres.It was the most viewed home in the country last week. 27 Piermont Place, Raby Bay Qld 4163Coming in second nationally was 334 Bridgeman Road, Bridgeman Downs — an eight bedroom, five bathroom, 10 car space house.Agents John Bradley and Matthew Biggs of Place Aspley have it listed as “elite executive living in Bridgeman Downs”. 27 Piermont Place, Raby Bay Qld 4163AUSTRALIA’S hottest three houses on the market this week have all come out of Queensland, latest viewing data has revealed.Data on the most viewed properties on the country’s biggest property site saw a five bedroom, six bathroom, three car space home in Raby Bay east of Brisbane come out on top. Friday afternoon drinks anyone? Jaw-dropping home licensed for 160 parties a year No delusions of grandeur here More from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours ago 67 hectares sell for $2.90 sqm It was listed as also having a kitchenette in the separate living area, in-built coffee machine in the kitchen, two dishwashers, a gym with separate outdoor access and a media room. 63 Mars Street, Coorparoo Qld 4151Agent Amanda Becke of Belle Property Coorparoo listed it as a “family sanctuary”.“The property is a blissfully private sanctuary with the feeling of living on acreage, without compromising convenience,” was how it was described. It’s located within the 10km ring from the Brisbane CBD, just 14 minutes drive from the city centre. 63 Mars Street, Coorparoo Qld 4151It has tonnes of natural light and leafy outlooks from every room over two levels, according to its listing, with a chef’s kitchen, plantation shutters, an inground swimming pool, and a large entertainment deck. FOLLOW SOPHIE FOSTER ON FACEBOOKlast_img read more

Betty’s a stayer

first_imgWHEN BETTY Archer purchased her Hyde Park home along with her husband in 1948, Townsville was just a country town still reeling from the impact of World War II.The 93-year-old, who is still sharp as a tack, will mark 70 years of living in the Princes Rd home on October 17 and may just hold the Townsville record for living in the same house for the longest. Betty Archer’s home pictured in 1948, the same year she bought it.Mrs Archer said she could still remember the sense of pride her and her husband Bill felt when they handed over the 1325 pounds for the house.“We were proud as punch and we thought it was wonderful because it was ours and it didn’t matter that it wasn’t flash or fancy,” she said.“The 1325 pounds included a lounge suite, bedroom suite and kitchen suite because those were the days when you had a sideboard in your kitchen.“The house was very bare and the outside wasn’t painted.”Ms Archer said it was difficult to buy things because of the war so they managed to fit all of their belongings in two suitcases when they moved from the unit they had rented in the city.“We were still in the wake of World War II so there was nothing much you could buy and we didn’t have many possessions to shift,” she said.“Everything was still rationed so you couldn’t just go out and buy linen or anything fancy.“I remember being so excited when I could eventually go in to the shops and find undies that had a bit of lace on them because we were starved of that kind of thing after the war.”They paid the house off in seven years and added an extension as their family grew and eventually they had nine children who slept in bunk beds before escaping not long after sunrise to play with the other children on the dusty streets of Hyde Park. Mrs Archer’s husband died in 1995 but Mrs Archer has remained in the home which she keeps immaculately maintained and is scattered with old family photos and knick knacks.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 2020Her nine children, 23 grandchildren and 38 great grandchildren visit often.Mrs Archer said it was a simpler time back when they bought the house. Everyone would put their milk money out each night next to the empty milk bottles on the bottom step and you always knew the name of your neighbours.“The kids didn’t have much and they never wanted anything,” she said.“We had a few books, a cricket bat, a ball and millions of kids in the street they could play with.“People didn’t have a lot of possessions like they do now.” Betty and Bill Archer on their wedding day in 1948.In the 1940 and 1950s the western end of Princes Rd and Ethel St was part of a big K Wire factory owner by the Foster Brothers.The brothers built a grand Queensland home each for themselves, one on Princes Rd and the other on Ethel St before building a rental property next door which Bill and Betty Archer would buy seven years later.As Hyde Park continued to develop over the years block of land were sold and houses were either built or relocated from other areas.Mr Archer worked as a public servant and later as a taxi driver while he also had one of the largest Townsville Bulletin delivery runs while Mrs Archer worked at Townsville’s first TAB once the children were older.Her husband helped around the house at a time when that wasn’t considered a man’s place and would bring home joeys he had found still attached to wallabies that had been hit by a car and left on the side of the road.“My husband was a great one for bringing home baby kangaroos… you’d find him going around the yard with a big sack around his neck and a kangaroo in it and was feeding it a bottle,” Mrs Archer said.“I had such a good husband, he would cook meals and do washing so he was very domesticated.”last_img read more

Off-the-plan property appeals to Melbourne couple

first_imgMore from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours agoMelbourne residents Doug and Claire Owens have bought an off-the-plan property at Robina’s $170 million Vue Terrace Homes development. Not only will it serve as a smart investment but a comfortable place for them to retire.Mr Owens, who is a finance broker, had owned several investment properties in Melbourne but said it was becoming too expensive. “I looked at investing in Melbourne again but the price for properties was too prohibitive and the return on investment just wasn’t there,” he said.“I looked at Tassie but felt it was starting to get too expensive, and the Gold Coast has always been somewhere I would like to retire so it made sense to consider a property suitable as an investment now and a place to live in the future.”The couple were among the first buyers to settle at the Robina development when stage one was completed this month.The fourth and final stage of the residential project, which is being developed by Robina Group, is now selling with prices starting at $635,000.Robina Group sales manager Azura Griffen said the modern design and central location at the heart of Robina’s education and transport hub was attracting buyers.A sales and display centre is open from 10am to 5pm every day on the corner of East Lane and Stadium Drive. Robina’s master-planned residential community, the $170 million Vue Terrace Homes, is located at the heart of Robina’s education and transport hub, making it an ideal location for students and families. Photos: SUPPLIEDSky-high prices in southern states prompted a Melbourne couple to look further north for an investment property.Doug and Claire Owens had their long-term future in mind when they decided to buy an off-the-plan property at Robina’s $170 million Vue Terrace Homes development.last_img read more

This Townsville home boasts incredible river views from a dream patio

first_imgThis house at 5 Wateredge Cove is on the market in Douglas.AFTER moving to Townsville over a decade ago from the quiet region of the Burdekin, Judy Hilton and Kevin Hartwell appreciated their own space and privacy. So when they stumbled across the corner block at 5 Wateredge Cove which overlooked the river in Douglas, they knew it was the place they wanted to build their next home. READ MORE Coastal charmer on the hill offers incredible views READ MORE “Our kids had moved out so we didn’t need the extra bedrooms. The rooms are very big and there’s plenty of space when guests do stay.”Ms Hilton said she already missed living at the property, with the river being her favourite place to exercise, and the patio her favourite place to unwind. “I really miss living there,” Ms Hilton said. “It’s a wonderful neighbourhood and I used to love sitting on the veranda when I got home from work and looking out at the river.“It took a lot to convince me to move.”Despite being located on the river, the property was completely unaffected during the floods earlier this year. Where property prices have fallen most in Queenland Mr Hartwell said the kitchen and outdoor space was the hub of the four-bedroom house, with a huge entertaining area that could be completely opened up or closed. “We mainly live in the outdoor area,” Mr Hartwell said. “It’s great for entertaining or having people over — for Christmas, you can host about 20 or 30 people. “It also has a big built-in barbecue which is great.” 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 2020The three generously sized bedrooms and fourth spare room are versatile and can be furnished to suit the ideals of its owner.Mr Hartwell said the house was built for himself and wife Judy, with the couple prioritising space over additional bedrooms.“It was just for the two of us,” Mr Hartwell said.last_img read more

Queensland dominates global property rich list but Sydney takes top gong for Australia

first_img Millionaire selling ‘rarely used’ beachfront pad Brisbane’s most expensive trophy home back on the market Insane Brisbane houses on the market FOR SALE: This stunner at 50 Dauphin Terrace, Highgate Hill, is on the market for sale by negotiationKnight Frank’s head of prestige residential Deborah Cullen said the majority of their local “ultra-wealthy clients” had felt that the local political and economic environment had made it more difficult to create and protect their wealth over the past couple of years, but 93 per cent of them reported their wealth had still increased in 2018.Seventy-per cent of those uber-rich clients expect their wealth to further increase this year, strengthening demand for luxury properties.Interest rates are also now at a record low one per cent, with many experts tipping they will fall further by the end of the year.It is trend being seen in other global cities, as policymakers worldwide look to stimulate growth. In Brisbane and on the Gold Coast, prestige agents have reported an increase in buyers seeking out high-end homes, but a shortage of sellers listing properties for sale. Knight Frank head of residential research Australia Michelle Ciesielski said owner-occupiers and downsizers continued to drive up values at the prestige end of the Gold Coast residential market.As for Brisbane, Ms Ciesielski said the rush for prestige properties had eased, likely due to the fact that prices in Sydney and Melbourne had bottomed out.“In saying this, growth in the local downsizer population remains consistent and will (continue to) do (so) over the coming years,” she said.Ray White New Farm principal Matt Lancashire said he believed the benchmark for Brisbane’s prestige market was now “$3 million plus”.He said even rundown, unrenovated cottages in some of the city’s most sought-after suburbs were fetching in excess of $1.5 million.“I have a lot of high-end buyers waiting for the right property,” he said. “In Brisbane, there is never enough prestige properties to meet demand.“As it stands, I have 17 buyers on my books willing to spend over $10 million on the right property.” RECORD: Matt Lancashire sold this New Farm property under the hammer for $7.75 million, setting a new record auction priceMr Lancashire said he was finding that the “higher the price, the faster the sale”, in many cases.He said one third of all of his deals last financial year were to buyers based overseas.On the Gold Coast, Alex Phillis of Alex Phillis Luxury Real Estate said the city had grown from a transient tourist town into a laid-back place to live in luxury.He said that many buyers were cashed-up and coming from interstate where prices were exorbitant, meaning many could afford the over-the-top mansions the coast was renowned for.“A lot of those (buyers) from Melbourne and Sydney have worked hard for the past 40 to 50 years and they want to come and escape the weather,” he said. “They’re making a lifestyle choice and they’re going extreme.“The Gold Coast is being taken seriously now at a global level.”He said more flights going in and out of the Gold Coast Airport and improved infrastructure had also bolstered the Gold Coast’s position as a go-to destination. FOR SALE: This clifftop mansion at 1 Leopard St, Kangaroo Point, broke the Brisbane price record with a sale price of $18,488,888 back in January 2017. It is back on the marketBut fast forward three months, and it would appear the downturn is looking up again in Sydney, with the city recording growth of 2.5 per cent (12 months) and 2 per cent (3 months) during the second quarter.For Brisbane, there was a small drop in prices (0.7 per cent) over the past three months but the city still recorded annual growth of 2.2 per cent, which is higher than the overall average annual prime price growth of 1.4 per cent across the 46 global cities in the 12 months to the end of June. MORE NEWS: Why the time is ripe for buyers and sellers 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 estate01:59Two Queensland cities are now among the top global locations for price growth in the luxury residential housing market.For the first time, the Gold Coast has earned a spot on the Knight Frank Prime Global Cities Index, which ranks the top cities for growth in the prestige property market each quarter.For the second quarter of 2019, Queensland’s Glitter Strip, which is ranked 27 out of 46, joins Brisbane (20th), Sydney (18th), Melbourne (21st) and Perth (32nd) on the global list. The report said that the Gold Coast’s inaugural inclusion reflected the tourist haven’s stability and its established luxury home market, with a “solid pipeline of new projects catered towards affluent local and interstate downsizers”.It joins the likes of Berlin (1), Moscow (3), Paris (7), Beijin (9), Tokyo (19) and San Francisco (26). MORE: The best waterfront houses up for grabs around Australia right now The Gold Coast recorded year-on-year growth of 1.1 per cent, outperforming Singapore, Los Angeles, Bangkok, Mumbai and London, to name a few.Melbourne jumped one spot up the rankings to 21st place thanks to its 2.1 per cent annual growth, and 0.9 per cent value increase over the three months to June. RELATED: Marina berth set to snag boaties hook, line and sinkercenter_img Peek inside the most expensive house for sale in the US FOR SALE: 55 Knightsbridge Parade West, Sovereign Islands, is listed for $9.88 millionBerlin took out pole position again, but Sydney reclaimed top spot for Australia after Brisbane briefly knocked the property powerhouse from its pedestal in the first quarter of this year.The Q1 index ranked Brisbane 14th, ahead of Sydney in 18th spot.At that time, Brisbane posted an 12 month price growth of 3.2 per cent, and 0.4 per cent growth over three months.By comparison, Sydney saw growth of 2.4 per cent and 0.2 per cent over the same time period. Inside the home of one of Australia’s top architects Millionaires’ Row house among Gold Coast properties selling fast 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 This waterfront mansion at 101 Commodore Drive, Paradise Waters, is listed for $14,888,000The index tracks the movement in luxury residential prices across global markets, and while prices globally were up 1.4 per cent on average, the research found that growth was “significantly lower” than the four year average, suggesting that global economic headwinds were having an impact. Why everyone is moving to Brisbane last_img read more