first_imgThe new IORP II Directive will increase costs in the second pillar in Germany despite not containing further capital requirements, according to Mark Walddörfer, board member at the Düsseldorf-based pensions consultancy Longial.Under the revised directive for pension funds in Europe, heads of retirement provision in companies will no longer be allowed –apart from a few exceptions – to run the company’s pension fund.“But in Germany, this is a common arrangement that ensures cost efficiency,” Walddörfer said, adding that it would be “important” for Germany to keep these arrangements intact.Further, he warned that the increased requirements respecting information for members and data for supervisors would increase costs in the second pillar and were “not necessarily adding value”. He quoted a survey by the German federation of company pension funds, the VFPK, which estimates an increase in administration costs of one-third.His major criticism regarding the IORP II is, however, the definition of pension funds as ‘financial service providers’.“In fact, they are social institutions created by employers not comparable to life insurers despite being regulated within a similar legal framework out of practical reasons,” Walddörfer said.While this was only a question of wording at the moment, the actuary warned that it might lead to problems in 2018 at the planned revision of the IORP II.“The danger is that capital requirements similar to those in Solvency II will then be included into the directive based on this definition – therefore we should try and change it now,” he said.Walddörfer said he was convinced that a copy of Solvency II-like capital requirements for IORP would “kill them immediately”.He also sees a danger of Solvency II being “introduced via the back door” with articles 29 and 30 on risk evaluation.“In the worst case, pension funds will have to assess risks with marked-to-market parameters,” he said.The Longial board member thinks German supervisor BaFin may introduce new risk parameters on top of those existing for IORP, and that EIOPA might want a say in those assessments.“And the most important question remains, why investors with a long-term investment horizon should use any short-term marked-to-market criteria for assessing their funding status?” Walddörfer said.He advised pension funds to “wait before implementing any of the IORP II requirements”, as changes were still possible.All in all, he thinks IORP II requirements will “weaken” German pension funds and asked whether this was “going in the right direction”.However, he pointed out that Pensionskassen were basically “on their way out” anyway, as few new pension schemes have been set up under this legal framework in recent years.“A Pensionsfonds is much more flexible, both in investments as well as managing liabilities, as it can be underfunded for a limited time and apply a higher discount rate,” he said. ”Therefore, this segment will continue to grow.”last_img read more

first_imgSPF, Varma, OPSG, Amsterdam Free University, Amundi, MN, SEISPF – Roelf Pater has been appointed as director of the €13bn Dutch railways pension fund’s pensions bureau. He joins from BlackRock, where he was director of fiduciary management since 2012. Earlier, Pater worked as an independent asset management consultant for pension funds and pensions providers. He has also held a variety of roles at TKP Investments, ING Investment Management and MN.Varma – Jarmo Hyvärinen, Kari Jordan, Erkki Järvinen, Hannu Kottonen, Päivi Leiwo and Christoph Vitzthum have joined the Finnish pension mutual’s supervisory board. Hyvärinen is currently chairman of the sales and marketing professionals union (MMA), while Jordan is chief executive of paper manufacturer Metsä. Järvinen and Kottonen are both chief executives of local manufacturing companies, Tikkurila and HKScan, and Leiwo is chair of the board at energy company Oilon. Vitzthun is chief executive of baking and confectionery group Fazer.Occupational Pensions Stakeholder Group – Philip Shier has been elected chair of the pension stakeholder group at the European Insurance and Occupational Pensions Authority. He is to serve the remainder of Benne van Popta’s term, after the Detailhandel chairman stepped down earlier this year. Amsterdam Free University – Ivor Witte has been appointed as co-worker of international pensions law at Amsterdam’s Free University (VU). While writing his PhD, he has focused on national and international aspects of pensions provision at the VU. Witte will now research the European dimension of supervision of pension plans and the meaning of European and international law for Dutch pensions legislation.Amundi – Navik Patel has been named head of directional strategies, joining from Aberdeen Asset Management. Prior to his five years at Aberdeen, he worked for RBS Asset Management and began his career at Coutts.MN – Gerald Cartigny has been named CIO and director of fiduciary management at the €110bn asset manager. He has carried out both roles since March 2014 on an interim basis following the departure of Wouter Pelser. Cartigny started at MN as director of account management in 2012. Previously, he was managing director at ABN Amro Asset Management.SEI – Brian McCauley and Owen Khonje have joined the fiduciary manager. McCauley was named client director, joining from the investment consultancy business at Buck Consultants. Khonje joins the alternative investments team from the in-house team at Barclays Bank’s defined benefit fund.last_img read more

first_imgTowers Watson, New Zealand Superannuation Fund, PwC, Towers Watson Netherlands, Mercer, Deloitte, Schroders, Cardano, Baring Asset Management, Roubini Global Economics, Lombard Risk Management, European Actuarial & Consulting Services, Tages Capital, EUROSIF, F&C Asset Management, Xafinity, Hymans Robertson, Sackers, Pinsent MasonsTowers Watson – Tim Mitchell and Ed Wilson have joined the consultancy as part of an expansion of its design consulting for asset owners and investment advice to institutional asset owners. Mitchell joins from the New Zealand Superannuation Fund, where he most recently served as a senior adviser for strategic projects and general manager of corporate strategy. Before then, he was a principal adviser for Crown financial policy to the New Zealand Treasury and CIO at Colonial First State in New Zealand. Wilson joins from PwC, where he was a director. Before then, he was head of investment research at HSBC Actuaries and Consultants.Towers Watson Netherlands – Michel Kuiters has started as senior investment consultant at Towers Watson, where he will focus on asset-liability management and risk management – including hedging strategies through derivatives and physical investments – for institutional investors. He joins from Cardano, where worked as a strategic risk manager.Mercer – Wayne Davidson has been appointed senior consultant in the Investment business. He joins from Deloitte, where he worked for nine years, most recently leading its London investment consulting business. At Mercer, he will head up a team of 20 analysts. Schroders – Mike Kleyn has joined the Advanced Beta team. He previously worked at Diamond Lightsource Synchrotron as a scientific software developer and has 15 years of experience in developing and researching systematic fixed income strategies at ABN Amro and BlackRock. Duncan Shand will also join the Advanced Beta team. He joined Schroders as a senior adviser on a consultancy basis in September 2014 from Warwick Business School, where he was a professor of Practice. Prior to joining Schroders, he spent 14 years at BlackRock.Baring Asset Management – David Nowakowski has been appointed director of fixed income research. He joins from Roubini Global Economics, where he was senior director of research. Before then, he was a strategist and portfolio manager at Atlas Capital.Lombard Risk Management – Alastair Brown has been appointed chief executive. He joins from Royal Bank of Scotland, where he worked in a variety of technology leadership roles in Global Banking and Markets, CIO of International Banking and most recently as head of eChannels, Global Transaction Services.European Actuarial & Consulting Services – Colin Mayger, a partner at Barnett Waddingham, has been appointed chairman. Mayger takes over the two-year-long posting from outgoing chairman Roel Nass, a partner at Dutch actuarial and pensions consultancy LNBB.Tages Capital – Ed Morse has been appointed as sales director with responsibility for sales and marketing for the UK and Northern Europe. He joins from F&C Asset Management, where he was co-head of investment trusts. Before then, he was sales director at Thames River Capital.EUROSIF – Flavia Micilotta has been appointed executive director. She joins from the Brussels-based Foreign Trade Association, the umbrella organisation that promotes social compliance (BSCI) and environmental performance management (BEPI), where she worked as a sustainability consultant. Xafinity – Nigel Heaton has been appointed as a sales director. He joins from Hymans Robertson, where he was a senior consultant. Before then, he served as a sales manager at RPMI.Sackers – Alasdair Blackshaw has been appointed to the Pensions & Investment Litigation team as an associate. He joins from Pinsent Masons, where he undertook his training contract and qualified in 2015.last_img read more

first_imgEurope’s top financial regulator has requested Brexit-related contingency plans from regulated companies based in London and other supervised entities.In a speech to the European Parliament’s Economic and Monetary Affairs Committee, Steven Maijoor – chair of the European Securities and Markets Authority (ESMA) – said the regulator was “looking closely” at the potential effects on the financial sector if the UK leaves the EU in 2019 without a trade agreement.“Obviously, Brexit may pose significant financial stability risks, in particular in the event that the UK would leave without any arrangements in place,” he said. “ESMA has been looking closely at the areas where a cliff-edge effect could mean higher risks for investors and markets as a whole, and, together with other relevant authorities, is working on possible mitigating actions.“In addition, as a direct supervisor of credit rating agencies and trade repositories within the EU, with a number of entities headquartered in London, ESMA requests appropriate contingency plans from individual supervised entities.” The regulator will monitor and communicate with affected parties “to reduce as much as possible the risk of disruptions under any scenario”, Maijoor added.As Brexit negotiations between the UK and the rest of the EU have stuttered, speculation has grown as to the effects of a so-called ‘hard Brexit’.A survey of derivatives traders by BMO Global Asset Management earlier this year found there was a “meaningful” risk that the negotiations could end with no deal.The average view on the probability of a “no deal” outcome was around 40%, BMO reported, although views were spread across a range of 5%-100%, emphasising the uncertainty of the outcome.In his speech, Maijoor also hinted at expanded powers for ESMA to oversee “third country” entities – a crucial aspect of post-Brexit regulation.The regulator has begun a review of how it would work with credit rating agencies based outside of the EU. However, Maijoor said it was clear that “some significant legislative changes need to be considered soon”.The European Commission has proposed granting ESMA regulatory powers over clearing houses (also known as central counterparties (CCPs)) based outside of the EU. After March 2019, this would include London-based entities.A review of European regulators has also proposed making ESMA the regulator of “certain key third-country benchmarks and prospectuses”, Maijoor added.“In the same vein, assigning supervisory powers for ESMA towards non-EU trading venues could be considered, as suggested in ESMA’s consultation response from earlier this year,” he said. “I believe that such a step to centralise the third-country supervision would bring a number of benefits for the Union as a whole.”Maijoor’s speech also touched on the impending MiFID II regulations. He warned that providers “should not underestimate the size and complexity of this project, and thus the risk of potential glitches in the initial operational period”.“ESMA does acknowledge the multiple challenges for everyone involved, and will address all issues with available tools as the implementation progresses,” he said.He emphasised that ESMA was also expecting to be stretched as the regulation came into force, requiring “some prioritisation” of different tasks.last_img read more

first_imgHe also predicted that, by 2025, the number of industry-wide pension funds would have dropped from 58 to 30, and that the number of company schemes would be 50, rather than 183 at the moment.The consultant also expected that there would be five occupational schemes and five APFs left by then – there are currently nine occupational schemes and seven APFs operating in the Netherlands.Pensions lawyer Hans van Meerten, who co-wrote the PPI bill, said he was surprised about GfK’s prediction.In his opinion, the fact that PPIs were pure DC vehicles was an advantage, as they can provide services cheaply and efficiently.“Contrary to an APF, a PPI doesn’t have the burden of implementing complicated benefit arrangements,” he said.Jan Hein Rhebergen, commercial director of PPI BeFrank, added that the APF seldom appeared to be a competitor during tendering processes.He said he expected PPIs to keep on growing in the market for employers, but acknowledged that consolidation would also continue.“Sufficient scale is necessary to keep on offering a decent and affordable pension,” Rhebergen said.Since the recent takeover of Delta Lloyd by NN Group, Delta Lloyd’s PPI BeFrank and NN’s PPI have announced plans to merge, which reduces the total number of PPIs to seven.The new combination is to continue under the Be Frank brand, and will be the market leader with combined assets of almost €2.5bn. The Netherlands’ specialist low-cost defined contribution (DC) vehicle, known as PPI, will disappear by 2025 because they do not make sufficient difference in a consolidating market, according to research firm GfK.In an article in Dutch insurance magazine AM:, Robin Hardeveld Kleuver, financial services consultant at GfK, said that the low-cost element of the PPI would probably not be sufficient to differentiate it in the future. He argued that the PPI merely implemented DC arrangements in the accrual phase, whereas the newer general pension fund (APF) vehicle could offer various arrangements, including the PPI’s proposition.“Leaving both in their current configuration doesn’t seem to be a serious option, and therefore saying goodbye to the PPI seems to be a matter of time,” concluded Hardeveld.last_img read more

first_imgHeribert Karch addressing aba’s 2018 annual conference“Aba is an excellent association that, in light of the challenges facing workplace pensions in Germany, plays an important role,” he said. “I appreciate the trust that has been placed in me.”Thurnes was elected chairperson at a board meeting today.He will be supported by deputies Richard Nicka, vice president of benefits at BASF and head of the BASF Pensionskasse, and Dirk Jargstorff, senior vice president of corporate pensions and related benefits at Robert Bosch and CEO of the Bosch Pensionsfonds.Jargstorff will also take over from Carsten Velten the running of aba’s expert group for Pensionsfonds, one of the vehicles for workplace pension provision in Germany. Georg Thurnes, AonAba said Velten, who is head of the Telekom Pensionsfonds, wanted to step down from the role because of additional work commitments. He had led the group for more than 15 years.Klaus Stiefermann remains aba’s secretary general. Joachim Schwind, who had been the association’s other deputy chairperson for more than 20 years, stepped down late last year after retiring as head of the pension funds for chemicals company Höchst. The board changes at aba come as the German occupational pensions industry eagerly anticipates the announcement of the country’s first defined contribution scheme, after a major pension reform law came into effect last year.Further readingGerman regulator urges take-up of new DC model BaFin president Felix Hufeld tells employers and unions to make use of the new legal framework for defined contribution (DC) pension funds brought in under the BRSG reforms.German social ministry to set up ‘forum’ for new pension plans Unions and worker representatives in Germany welcome a government proposal to set up a “forum” for questions regarding the introduction of non-guaranteed pension plans.aba Anniversary Conference: ‘Grasp opportunities reform offers’ Heribert Karch issues an impassioned plea for support for the BRSG reforms at aba’s 80th anniversary conference last year.And look out for in-depth coverage of German pensions in the April edition of IPE magazine Georg Thurnes is to replace Heribert Karch as head of the German occupational pensions association aba, it was announced today.The handover will take place at the Berlin-based association’s annual conference in early May.Karch will step down from the board after eight years as the association’s head. He is also the managing director of German industry-wide pension fund Metallrente, and said he would concentrate on his responsibilities in that role from May.“I don’t find it easy, but I am determined to reduce my activities,” he said. “I am happy that Georg Thurnes is willing to take over the demanding role of chairperson.center_img “The management of our association will be in the best of hands.”Thurnes is chief actuary and board member at Aon Hewitt Germany, and a well-known figure in the German occupational pensions industry. He has been one of aba’s two deputy chairs since 2011, and on the board since 2008.last_img read more

first_imgAccording to the BEIS report, although new pay awards remained fairly flat over the last decade, “huge differentials” between FTSE 100 chief executives’ earnings and average pay had been “baked into the pay system”.“Primary responsibility for changing the environment on executive pay” lay with asset owners – not asset managers – it said.It was up to asset owners such as pension funds to give any instructions or direction to asset managers on the stance to be taken on corporate governance issues, including executive pay, and to hold them to account.“We call for greater transparency in the way they set investment objectives, including on executive pay, and that the regulator is given powers to take effective action against those who do not meet their responsibilities under a revised Stewardship Code,” said the BEIS committee. “Public scrutiny has often had more influence than investors or remuneration committees in getting companies to reverse outrageous executive pay decisions”Rachel Reeves, chair, BEIS committeeStewardship Code revisionsThe Financial Reporting Council (FRC), which is due to be replaced with a new body, is consulting on changes to the UK’s Stewardship Code until the end of this week. Changes are aimed at setting the bar higher in terms of stewardship practice and reporting.However, in the opinion of the BEIS committee, the proposed revisions did not go far enough. It suggested that guidance in the new code should include a requirement for asset owners to provide much more detailed information about their objectives, including those in relation to executive pay.The regulator succeeding the FRC – dubbed the Audit, Reporting and Governance Authority –should be given “the necessary powers to take effective action against those asset owners that do not sign up to, or meet their responsibilities, under the Code,” it added.The regulator should also be given the “tools and encouragement to be tough on those companies that behave unreasonably on executive pay and fail to adhere to the tighter requirements of the revised UK Corporate Governance Code on higher quality pay reporting”.Future of executive payThe BEIS committee also said executive pay should be made simpler by basing it more on a fixed-term salary and deferred shares that vest over a long period, and less on variable pay.Other recommendations included that employee representatives sit on company remuneration committees to strengthen the link between executive and employee pay, and that remuneration committees set, publish and explain an absolute cap on total executive pay in any year.The MPs also said the FRC’s successor should “seek public explanations from any company that fails to deliver on alignment on pensions contributions”.Last month the Investment Association, the trade body for the UK asset management industry said it was focusing on pension contributions to directors during this year’s AGM season.Reeves said: “When the company does well, it is workers and not just the chief executive who should share the profits. Why should chief executives have a more generous pension scheme than those who work for them?“Getting workers on remuneration committees and including staff in profit-sharing schemes should be the first steps to this end.“Investors and remuneration committees have too often failed to rein in pay. When they fail, we need a regulator with the powers and mindset to step in and get tough on businesses who pay out exorbitant sums to their CEOs.” An influential group of UK MPs has called for a tougher regulatory approach to executive pay, claiming that neither remuneration committees nor institutional investors seemed up to the job.“A tougher, more proactive regulator is needed because we do not have confidence in remuneration committees, or institutional investors in exercising their stewardship functions, in a way that consistently bears down on executive pay,” said the Business, Energy and Industrial Strategy (BEIS) committee in a report published today.Rachel Reeves, the committee’s chair, added: “Public scrutiny has often had more influence than investors or remuneration committees in getting companies to reverse outrageous executive pay decisions.“The glare of publicity cannot be the only weapon in the armoury, but companies should be assured that the BEIS committee will continue to shine a light on executive pay and hold businesses to account for their actions on CEO rewards.” last_img read more

first_img“The proposals reflect a thoughtful mix of prescriptive and principles-based requirements that should result in improved disclosures and the elimination of unnecessary costs and burdens.”The proposed changes included dropping a requirement for companies to disclose the “most significant” risks to their business and replacing this with a requirement to disclose the most “material” risk factors.Clayton highlighted that the SEC’s proposal recognised that “intangible assets, and in particular human capital, often are a significantly more important driver of value in today’s global economy”.According to the commission, its proposed amendment of the rule relating to companies’ “narrative description of the business” would also “refocus the regulatory compliance requirement by including material government regulations, not just environmental provisions, as a topic”.Company disclosure of environmental, social and corporate governance (ESG) topics has become a topic of debate in Washington recently.In October, a coalition of asset managers, public pension funds, lawyers and responsible investment organisations filed a petition with the SEC to request that it develop a comprehensive ESG disclosure framework. Last month US lawmakers in the House Financial Services Committee debated five draft bills that would require public companies to disclose information on certain ESG topics. Source: SECThe SEC’s headquarters in Washington DC The US financial markets regulator has proposed amendments to corporate disclosure rules in a bid to improve information for investors and ease compliance by public companies.More specifically, the Securities and Exchange Commission (SEC) said, the proposed changes were intended to make disclosure documents easier to read and to discourage repetition or disclosure of information that was not material.“The world economy and our markets have changed dramatically in the more than 30 years since the adoption of our rules for business disclosures by public companies,” said Jay Clayton, chairman of the commission, in a statement yesterday.“Today’s proposal reflects these significant changes, as well as the reality that there will be changes in the future.last_img read more

first_imgThe Local Authority Pension Fund Forum (LAPFF) is calling on its members to vote against the re-election of the entire board of ExxonMobil at the company’s annual general meeting (AGM) tomorrow.It indicated this was in response to the company blocking a shareholder proposal “by investors involved in Climate Action 100+” (CA 100+), and also announced it was recommending members support three shareholder resolutions: one calling for the appointment of an independent chair, another seeking a report on lobbying, and another a report on risks of petrochemical operations and investments in vulnerable Gulf Coast locations.LAPFF, which is a voluntary association of 82 public sector pension funds and six pools based in the UK with combined assets of around £300bn (€269bn), is part of a group of investors collaborating to support engagement with Exxon as part of CA100+.It has engaged over many years with the company, and issued voting alerts on climate-related resolutions at Exxon since 2008; this is the second year in a row it has recommended a vote against the entire board. Councillor Doug McMurdo, chair of the forum, said: “ExxonMobil’s ongoing resistance to supporting the Paris Agreement on climate change is unacceptable. We expect the boards of companies in which we invest to take investor concerns over climate seriously.”LAPFF joins Legal & General Investment Management and Church Commissioners for England in publicly signalling and/or calling for votes contrary to the Exxon board’s recommendations in response to its governance and strategy with respect to climate change.After a shareholder proposal it co-filed failed to make it onto the Exxon AGM ballot paper for the second year in a row, Church Commissioners last month joined forces with the New York State Common Retirement Fund to write an open letter to Exxon shareholders to urge them to vote for two shareholder resolutions, and to take a “strong voting stance” on directors’ re-election.‘Misleading’ claim rebuttedWriting in a blog on an ExxonMobil website last week, Stephen Littleton, vice president of investor relations and company secretary at ExxonMobil, said Church Commissioners and the New York State pension fund had made “recurring statements and SEC filings […] that misrepresent our positions and actions on both of these important matters [climate change and shareholder engagement]”.Edward Mason, the outgoing head of responsible investment for Church Commissioners, rejected this in a comment on Twitter: “We’re misleading no one when we call out the risks of defiance of the Paris Agreement and energy transition. It’s time for shareholders to demand better.”Littleton said the company had responded to feedback from shareholders by strengthening the authority of its lead independent director (Kenneth Frazier), added a new provision for shareholders to call special meetings, and “enhanced disclosures on issues of importance”, including risks related to climate change and oversight of lobbying and political contributions.He pointed shareholders in the direction of the company’s ‘Energy & Carbon Summary’ report and other resources “to better understand how the company is managing these complex challenges before us and how we engage with our shareholders”.Last year a proposal to separate the positions of chair and CEO at Exxon got 40.8% of the vote.Looking for IPE’s latest magazine? Read the digital edition here.last_img read more

first_imgMore from newsParks and wildlife the new lust-haves post coronavirus17 hours agoNoosa’s best beachfront penthouse is about to hit the market17 hours agoInside the beach shack at 90 Seagull Ave, Mermaid Beach.“All three have been well maintained or renovated and buyers could simply move in, but it is likely that in the coming years these homes will all be transformed into more substantial properties.”A three-bedroom, one-bathroom cottage at 23 Ocean Street is for sale for offers over $1.4 million, while a mid-century fibro beach shack at 90 Seagull Avenue could be yours for more than $1.3 million.A tiny, two-bedder at 15 Tamborine Street is also up for grabs and just had its price reduced to $1.395 million.After 12 years and two kids, Melissa and Scott Lyndon have decided to sell their beloved beach house.But they hope it will go to someone who loves it as much as they do.“I hope they don’t pull it down,” Mrs Lyndon said.“I hope they do keep it and love it and enjoy it like we have.“We love the fact it’s homey, you know, and it is a beach shack and it’s not sterile … not a big concrete mass.” MEGA MANSION SELLS FOR $11M Inside the beach shack at 23 Ocean St, Mermaid Beach.Mr Henderson’s agency currently has three original beach shacks on the market in the suburb, which is rare. On the outside, they may not look too flash, but most original beach shacks have either kept their retro charm or been renovated inside.“All three homes are older style beach cottages, have two or three bedrooms, and sit on 405 sqm blocks within easy walking distance to the beach and all the attractions of Mermaid Beach,’’ Mr Henderson said. OLD AND NEW GO UNDER THE GAVEL The humble beach shack is in danger of becoming extinct in Queensland. Picture: Alan Barber.“The height restrictions in the residential areas have helped maintain that strong community feel in the suburb and have encouraged property owners to upgrade their homes without the fear that a high-rise apartment will be built next door,” Mr Henderson said.“At the same time developments along the highway have revitalised what was becoming a tired strip of shops.“The suburb has benefited majorly from the growth of the cafe culture and the area now is home to some of the city’s best restaurants, cafes and bars.”Palm Beach is also experiencing a loss of traditional beach houses from its streets.A tiny, original beach shack on the market for $3.25 million has just sold — making its former owners close to $1 million in just two years. The kitchen in the beach shack at 193 Jefferson Lane, Palm Beach.Overlooking the sand and surf, the house has panoramic coastal views from Snapper Rocks to Stradbroke Island and is within walking distance to popular cafes, shops and the local surf life saving club.Palm Beach is an hour’s drive from Brisbane and 10 minutes from Gold Coast Airport.The suburb has a median house price of $820,000, with prices increasing more than 10 per cent in the past 12 months, according to CoreLogic. The original beach shack has become a dying breed on Queensland shores.THE humble beach shack is in danger of becoming extinct in southeast Queensland as buyers snap them up only to bulldoze and build bigger and bolder versions of the real thing. Beachside real estate agents say time is running out for to secure an original beach cottage on Queensland’s coastline, especially in suburbs like Mermaid Beach and Palm Beach. But they don’t come cheap. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE Original beach shacks are disappearing from Mermaid Beach on the Gold Coast.Entry level prices for older-style detached homes east of the Gold Coast Highway now sit around the $1.2 million mark.Luke Henderson.of John Henderson Professionals Mermaid Beach said the suburb had undergone a significant process of gentrification in the past five years, driven by seachangers snapping up beach shacks and replacing them with brand new homes complete with teenager’s retreats and modern luxuries. WINTER FEAST FOR PROPERTY BUYERS This beach shack at 23 Ocean Ave, Mermaid Beach, is for sale. This beach shack at 193 Jefferson Lane, Palm Beach, sold for $3.25m.The two-bedroom abode on 412 sqm of absolute beachfront land at 193 Jefferson Lane was built in the 1970s and has barely been touched since.Selling agent Troy Dowker of Ray White-Mermaid Beach said the property had sold for circa $3 million to a local buyer, who planned to knock it down and build a luxury home on the site. Inside the beach shack at 15 Tamborine St, Mermaid Beach.The median house price in Mermaid Beach is now the highest on the Gold Coast at $1.575 million, having grown by a staggering 84 per cent in the past five years.“While the suburb has always been considered one of the Gold Coast’s most desirable addresses, there are a number of factors which have made it a stand out performer in recent years,’’ Mr Henderson said.He said the local council’s decision to protect the three-storey height limit in the residential areas while allowing for higher developments along the Gold Coast Highway had made Mermaid Beach more appealing. This beach shack at 15 Tamborine St, Mermaid Beach, is for sale. This fibro beach shack at 90 Seagull Ave, Mermaid Beach, is for sale.last_img read more