Page 71 – Kanebridge News

May 19, 2021April 20, 2022

Future Returns: Investing In the Soaring Energy Sector

Energy has transitioned from the worst- to best-performing sector in a matter of months. How long is it likely to outperform? And which companies are most promising for investors?

Serious difficulties for the energy sector began in April 2020. Demand screeched to a halt under pandemic lockdowns, and the futures prices on the global benchmark West Texas Intermediate (WTI) cratered to negative territory for the first time. The per-barrel price plummeted from US$18 to negative US$37 due to oversupply as Covid-19 crippled industry and mobility around the globe.

But the sector came roaring back to life late last year on positive vaccine news and surged through this year’s first quarter, as successful vaccine rollouts enabled relaxation of Covid-19 restrictions and economic activity rekindled.

In the first quarter, many big oil companies banked a profit for the first time since the pandemic began. Meanwhile, investors have been soundly rewarded. Through last week, the energy sector was up 35% this year compared to 9.5% for the S&P 500.

Bull or Bear?

Sam Halpert, Philadelphia-based chief investment officer at Macquarie Investment Management who oversees the firm’s natural resources equity strategy, views the recent outperformance as a cyclical bull market in the context of a secular bear market for the sector.

“The bull market could last two or three years, but there are still long-term issues around hydrocarbon and the energy transition that will impact the sector,” Halpert says.

The energy sector was under pressure even prior to the pandemic as investors were increasingly hesitant to commit capital as an inevitable transition from fossil fuels to greener choices loomed.

Lack of capital flowing into energy companies focused on shale technology is a hindrance to oil production. “Investors have not been willing to finance shale, there’s been a decrease in investment and production,” Halpert says. “Production was 11 million barrels a day last week, and we peaked at 13.1 million barrels a day in March 2020.”

Pressure on the sector isn’t likely to let up. In fact, the transition from the U.S.’s reliance on fossil fuels to low-carbon energy alternatives has renewed political momentum under President Joseph Biden, who supports policies that elevate greener alternatives and aims for the U.S. to have a 100% clean energy economy and net-zero carbon emissions by 2050.

Investors’ decline in interest in energy has been steady and notable. In 1980, the sector accounted for almost 30% of the index. By 2019 the percentage was 5.3% and this it slipped to 2.33%.

While energy will clearly be impacted over the long term by fundamental changes, “there are a lot of companies that can benefit during the transition and are changing the way they do things,” Halpert says. “They’re becoming more environmentally friendly or changing business slightly to areas that have more growth, and the market is rewarding that.”

Consolidation Boom

Some of the best opportunities are among companies that are not only accommodating environmental factors in the way they do business, but that are sound enough to be gobbling up smaller players in what has been a highly fragmented industry.

The consolidation has been rapid: For example, in late 2019, Parsley Energy of Midland, Texas, acquired Denver-based Jagged Peak. Since then, Parsley was acquired by Pioneer Natural Resources of Irving, Texas, which in May completed the acquisition of Midland, Texas-based DoublePoint Energy.

A central region for the consolidation boom is the Permian Basin, a 75,000-square-mile region from West Texas to Southeastern New Mexico. With rich oil reserves discovered some dozen years ago, it now accounts for more than one-third of oil production in the U.S. Just two years ago the Permian Basin unseated Saudi Arabia’s Ghawar oilfield as the biggest producer in the world.

“There have been too many players, many with marginal acreage or fields they’re developing,” says Geoffrey King, senior vice president and portfolio manager at Macquarie. As investor capital has declined, many of the smaller players have struggled.

King looks for opportunities among companies with sustainable practices that are in position to buy the smaller players. They’re benefiting from strengthened commodity prices and a perked-up demand.

“They have the ability to not only develop and maintain a growth rate comparable to the overall average S&P 500 growth rate, but to deliver excess cash to shareholders,” King says. “The model is being proven out and we’re in inning two or three.”

Veteran Industry Players

Among biggest holdings in Halpert’s and King’s institutional strategy is Plano, Texas-based Denbury (DEN), one of their few small-cap names that focuses on producing carbon negative barrels oil through carbon sequestration, which is the process of capturing and storing carbon dioxide.

“As people talk more about carbon sequestration, this is the game in town,” King says. “A lot of industrial companies don’t want to deal with the complexity of storing carbon. We think this is a very unique small-cap story that’s underappreciated.”

Another is Valero, the San Antonio-based largest independent refiner in the U.S.

“It has best-in-class assets and best-in-class management team,” Halpert says. “They’ve done a really good job returning capital to shareholders over the last several years.”

The company recently entered into an agreement with Darling, which processes waste such as from meat processing plants and the leftover oil from restaurants and food businesses. Valero transforms the waste into the fuel equivalent of ethanol.

“It has the identical chemical properties as ethanol, but ethanol has constraints around usage. It’s tough in the cold weather because it can cause engines to clog,” Halpern says. “Valero’s product is a low carbon fuel and low cost to produce.”

Another noteworthy holding is the big oil service company Schlumberger (SLB), based in Houston but with a global reach. “It’s involved in lithium, carbon sequestration, and a number of technologies that will be important in the energy transition,” Halpert says.

While there are numerous new entrants to the energy transition play, “we prefer to play it with a company with a balance sheet like Schlumberger and the technology of Schlumberger.”

May 18, 2021May 28, 2021

Three Of Sydney CBD’s Most Luxurious Penthouses

The last few years has seen a considerable uptake in apartment living across Sydney, notably in the prime market as driven by a slew of new luxury developments.

It’s meant recent Australian sales records – cue Crown’s One Barangaroo and its waterside neighbour, One Sydney Harbour – as purchasers look to secure a standout property and also embrace the benefits of expansive inner-city living.

While the penthouses of the aforementioned towers are now gone, there remains some unique, cloud-catching CBD abodes available.

Here, three of the best to purchase now.

3303/203 Castlereagh Street, Sydney, NSW 2000

The Castle Penthouse, located in Castle Residences and designed by Candelepas & Associates architects, sees a 4-bedroom, 4- bathroom, 2-car parking residence delivered in the heart of Sydney’s CBD.

Here a rooftop terrace boasts breathtaking views over Hyde Park and the city skyline, with an extensive and undoubtedly luxurious finish by Studio Aria ensuring it is one of the finest properties in Australia.

The penthouse is reached via a private lift, through a double door entrance and sees opulent finishes including the use of stone benchtops, large porcelain tiles and bespoke joinery.

Expect an open-plan design, leading outwards to the buildings highly desirable winter gardens. It’s here you’ll find an opulent kitchen, complete with Gaggenau appliances.

The penthouse is also offers a master bedroom that spans the top floor, and opens out to a sky garden with decked spa.

Those fortunate to call Castle Residences home will also enjoy various hotel amenities – such as pool and gym access as well as desirable in-house dining sourced via restaurants such as Henry’s Bread and Wine, Dixon & Sons and Spice Trader. Meanwhile, housekeeping, concierge, valet parking and 24-hour security are all accessible via in-house app.

The property is expected to welcome residents from end of August 2021.

The listing is with McGrath Pyrmont’s Robert Alfeldi (+61 418 982 688); mcgrath.com.au

Level 43/163 Castlereagh Street Sydney NSW 2000

Much has already been written about the Boyd Residence. The grand, lavish, award-winning penthouse sits some 180-metres above street level offering. 2395sqm in the heart of the CBD.

Spread across three levels comes 4-bedroom, 5-bathrooms and 2 car parking. Inside sees unprecedented levels of privacy and opulence, with 24-hour security.

Accessed via private lift, it opens to a glass wall with built-in champagne storage. Elsewhere a sleek fireplace, multiple seating groupings and walls of glass take in the panorama of the city.

Each bedroom suite arrives with a marble bathroom, while the rest of the residence is framed by double-height ceiling and dramatic walls of glass.

Also, a resort-style private rooftop pool tops the living space, adding further luxury to the pad.

The listing is with Christie’s International’s Ken Jacobs (+61 407 190 152) and LJ Hooker Double Bay’s Bill Malouf (0411 428 354); theboydresidence.com.au

83.01/115 Bathurst Street, Sydney, NSW 2000

Known as the ‘King’ Penthouse, comes this luxurious pad inspired by the global cities of New York and London.

Here, at the very pinnacle of the Greenland Centre tower comes panoramic views of the CBD, Blue Mountains, Hyde Park and Sydney Harbour.

The 4-bedroom, 4-bathroom, 4-car parking penthouses offers sophisticated details, with glamorous stone island benchtops in the kitchen and concealed scullery, to towering balconies overlooking Sydney.

The master bedroom features an opulent dressing room that opens to reveal handsome timber-panelled interiors with wide drawers and open display shelving for all your finery, handbags, watches, belts and scarves

The master bathroom is cloaked in emerald green marble and features high-quality fixtures, a free-standing bath and heated towel rack bringing minimalist glamour while a soaring skylight adds luminous radiance.

Further amenities include a 30-metre outdoor pool, gym, spa, sun deck, and multi-function residents’ room.

Contact Ben Stewart (+61 412753740) of CBRE for more information; thegreenlandcentre.com.au

May 18, 2021

A Former WWII M16 Spy Post Re-Emerges As A Ultra-Modern Mansion

A pocket of leafy suburban London that once held a secret, wartime intelligence base with bullet-proof doors and windows, and wireless transmitters on the roof, is now a newly built luxury home.

Set in the village of Arkley in North London, Rowley Ridge, as it’s known, spans 1020 square metres and hit the market in April for £8.5 million (A$15.4 million) with estate agency Beauchamp Estates.

During World War II, the site of Rowley Ridge—then an Edwardian villa—was selected by British Prime Minister Winston Churchill as one of a handful of detached country houses to be a clandestine listening post base used by M16 to spy on German signals, intercept illicit wireless messages and support the code-breaking taking place at the famed Bletchley Park, according to a news release from the brokerage.

Set 134-metres above sea level, Arkley was chosen by Churchill for its advantageous altitude—conductive for capturing radio transmissions.

“As a local resident I am naturally biased, but I truly believe that Arkley is a true leafy oasis,” Jeremy Gee, managing director of Beauchamp Estates said in the release.

It’s “one of London’s most exclusive enclaves, bordered by both greenbelt countryside and the private golf course, yet only nine miles from London’s West End,” he said. Arkley’s hidden role as a World War II M16 base adds the excitement and glamour of the secret services, spies and gadgets.”

Now the six-bedroom family-home, developed by Domvs London—is loaded with very different amenities than it would have housed some 80 years ago.

There’s a three-story atrium, a main reception room with a lounge area, drawing room area and dining area, a custom-designed kitchen, a main bedroom suite with a private balcony and views across the nearby private golf course, according to the release.

On the basement level is a soundproof cinema room with a cocktail bar, a game room, a swimming pool, a steam room and a gym. There’s also a panic room and a biometric entry system.

May 18, 2021May 18, 2021

10 Defining Themes For The Future Of Wealth Management

J. Pierpont Morgan would be proud that many of the historical tenets of the asset- and wealth-management industry still form the bedrock of how money is managed in modern times. The fund’s 150-year track record is a testament to our industry’s founding principle: While the world may change, clients’ desire for investment expertise and personalised service won’t.

With that in mind, here are 10 key themes that we look forward to helping our clients navigate in the future.

1) Price. Ever since I entered the asset-management industry, sceptics have warned that fee pressure will destroy profitability and detract top talent from the profession. Fees in every industry compress at some point. Successful firms of the future will thrive by either providing commodity-like products at scale for near-zero cost, or delivering hard-to-access insights and exposures that command a premium. Our industry must strive for continuous improvement on both ends of the spectrum.

2) Scale is a matter of survival. With compressed pricing, heavy regulatory controls, and immense spend on data, analytics, and risk-management tools, firms need a relentless focus on operational efficiency, a rigorous control framework, and a disciplined prioritization process around investments for the future. In this context, scale is key. Mergers and acquisitions and outsourcing of sub-scale and noncore capabilities to service providers will enable smaller firms to refocus their efforts back into their most important asset: talent.

3) Actively advising clients. If we learned anything from the Covid-19 crisis, it is the need for sound advice in volatile times. During that time, thousands of actively managed funds outperformed their passive alternatives across asset classes and portfolios. While markets may be efficient, manager selection is key and clients need guidance. The average industry return of a balanced portfolio over the past two decades was 6.4% annually, while the actual experience of the average retail investor was only 2.9%, a stark reminder of how critical hands-on advice is.

4) Impact and purpose. Portfolio managers and research analysts have become essential for investors seeking to make an impact in the world through their assets. Over 80% of surveyed CIOs expressed intent to invest in environmentally and socially conscious companies. Analyzing CEOs and their management teams is no longer just about inquiring about their financial and operational expertise and vision, but also about the impact they make on their communities and the planet. Rising demand for companies that drive positive change will create a virtuous cycle of asset allocation for good.

5) Personalization. Today’s investors want to be intentional, not passive, in investing. They care about taxes and want to overweight companies that can make a difference. They want to avoid whole sectors, or actively own and vote on a company’s strategic plans. Giving clients the freedom to pursue their very specific objectives in a highly customized manner will continue to drive innovation in our industry.

6) Stable and predictable incomes. Millions of investors around the world have come to rely on their investment portfolios as a stable source of income. With individuals enjoying longer life spans and more active lifestyles, especially during retirement years, asset managers need to adapt their strategies to provide for a stable and predictable flow of income every month. Along the same lines, saving needs to start at a young age. Today, less than 40% of Americans have enough savings to pay for an unexpected $1,000 expense in cash. It is our collective responsibility to educate and advise on what is required to cover all of life’s events and milestones.

7) Understanding China. The pandemic has highlighted the interconnectivity of the world and how important China is to supply chains and new innovations. Against this backdrop, it is irresponsible to be a fiduciary of client capital and not have a deep understanding of places like China. It is hard to imagine having a true grasp of competitive global forces without on-the-ground insights of the economies, cultures, and politics of re-emerging global marketplaces. After 100 years of being on the ground in China, J.P. Morgan is poised to become the first foreign asset manager to acquire full ownership of a Chinese fund manager, pending regulatory approval. That kind of commitment will contribute massively to our global research network.

8) Technology drives everything. To adapt to the velocity of progress and change, technology is providing our industry access, speed, and agility like never before. With more technologists than Google and Facebook combined, J.P. Morgan invests over $12 billion annually in technology to help empower our clients and employees to work faster and more seamlessly in ever-changing markets. We need to be forward thinking and have the ability to be a disruptor. Agile, collaborative partnerships between technologists and their businesses will drive innovation and speed to market at an exponential pace.

9) Access. With a global footprint and a full suite of investment vehicles, asset managers must continue to focus on enabling first-time investors to invest in previously inaccessible areas. We are finding ways to provide more opportunities, more choice, and more power to people. Investments once only available to the largest investors in the world are now being accessed by the everyday investor. Democratization of markets should create better outcomes for investors of all sizes.

10) A new flexibility. Our industry adapted quite seamlessly to a previously unimaginable work-from-home scenario. As such, increased flexibility will broaden talent pools and should promote greater diversity. While never losing the apprenticeship nature of our business, we should continue to find new ways of working with one another to generate even greater success.

In coming years, the industry’s winners will remain obsessed about their fiduciary responsibilities. As stewards of capital, the ability to leverage technology and scale to deliver the same extraordinary experience for every investor, with $100 or $100 million, is now within reach.

May 18, 2021May 19, 2021

You’ve Lost the Bidding War On Your Dream Home

If you are trying to buy a house right now, you’re in the middle of a real-life Hunger Games. You finally find that perfect little house that you can’t live without, and there will be 13 other people who feel the same way.

That means you’ll be sucked into the worst possible outcome in any house-hunting scenario—a bidding war. Those other house hunters, like you, will do whatever is required and use all the weapons at their disposal to land the place. And when you lose, which you most likely will, you will watch your dreams—of backyard cookouts, of being able to get out of bed on both sides, of room to turn around in the bathroom without bumping your butt on the sink, of a kitchen in which your pots and pans don’t all have to live in the oven—evaporate. You will be gutted. You will grieve mightily, just like when [your childhood pet’s name here] got hit by a car.

The good news is that you will get over it, eventually. But first, you’ll have to go through the five stages of grief that accompany the loss of any bidding war. The stages start right after you stop swearing. Here’s what each stage looks like, plus some suggested coping mechanisms to get through them:

Stage One: Denial

You didn’t really want that stupid house. It’s a stupid house. Forget that house.

You should: Keep saying this to yourself until this stage wears off. It’s the best you’re going to feel for awhile.

Stage Two: Anger

That house wasn’t stupid! It was awesome and you lost it. Why do you keep on LOSING?? Why can’t you ever WIN anything? It’s just like the high school state basketball championship that you LOST. And all those times you lost the lottery. Oh great! Now there’s a hole in the wall above the TV from you throwing your laptop in loser rage. Loo. Zer.

You should: Stop with the throwing. You’re going to be in your house awhile. But don’t repair the hole. That’s just conceding that you are never moving out. Go buy a painting to cover it up. It will take your mind off all the losing.

Stage Three: Bargaining

You are brilliant! Why didn’t you think of this before? You tell your broker to offer 5% above the winning offer, no matter what it was. Your broker tells you it was all cash, 30% over asking, included a new Range Rover, the buyers are closing on the property in eight hours, and their moving truck is already idling outside the house. “Face it,” your broker says. “You lost.” “NO!” you think really loudly to yourself. “You lost, broker person. YOU lost.”

You should: Drink and cry. But whatever you do, don’t watch HGTV. All those clueless, insanely picky, delusional, yet somehow winning house hunters will make you throw things at the TV, which you can’t replace because you need your savings for a downpayment. Theoretically.

Stage Four: Depression

You will never find a house. Just quit looking. It’s pointless. Why even bother? You’re going to be stuck in this dumb, ugly house for the rest of your life, looking at that terrible painting you just bought to put over the hole. You hate that painting. What is that even a painting of? An angry bee stinging a… a walrus of some sort? Is it even hung the right way up? It looks like a five-year-old drew it. It’s a stupid painting.

You should: Stop drinking and go to bed. Leave the picture alone. It’s hung properly. You maybe should have paid for a nicer one, or bought some fine art photography of the Eiffel Tower or a foggy Brooklyn Bridge. Deal with that tomorrow. If you have dreams about blowing up that house that someone else won, that’s a normal part of the grieving process.

Stage Five: Acceptance

Wait. That’s not a bee and walrus. It’s a flower in a garden. Now that the morning sunlight is hitting it, it’s not that bad of a painting. The colours go with the comfy chair. Like you planned it that way. You sort of like it now. You’re gonna sit in that comfy chair and admire your new painting, have a cup of coffee and take a quick scroll through the listings sites to see if anything came on the market overnight. You’ll use your phone, since your laptop is in pieces.

You should: Love the one you’re with. Maybe go ahead and fill in that hole. Keep the faith. Your house is out there. It might take you a year to find it. You might need to look at 100 houses or more. Maybe you’ll have to wait until this insane market crush has calmed down a bit. But you’ll find it. In the meantime, remember to be thankful that you’ve got a roof over your head, be that as it may.

May 17, 2021

National Auction Markets Easing

With a surge of sellers keen to take advantage of strong buyer competition, the home auction markets reported lower clearance rates and clear signs that the white-hot market is beginning to cool.

A total of 2401 homes were reported as listed for auction on Saturday, May 15, which, although lower than last weekend’s May record 2563 listings, provided plenty of choices for buyers.

The national average weekend clearance rate was down on Saturday, falling from 83.1% to 80.9% – the lowest result since the 77.7% recorded on January 30.

This is the fourth consecutive weekend that clearance rates have fallen and is well below the peak national average of 88.5%, recorded on March 5.

Sydney hosted another incredibly busy weekend of auctions, with 9990 Sydney auctions reported on Saturday – just below the previous weekend’s May record 1014.

With a larger volume of auctions, the Sydney clearance rate fell to 82.9%, down on the previous weekend’s 83.5%, and the fourth consecutive weekend of falling rates.

Sydney recorded a median price of $1,641,000 for houses sold at auction at the weekend, just below the $1,650,000 reported over the previous Saturday, but 16.4% higher than the $1,410,000 recorded over the same weekend last year.

Melbourne again saw a surge in auction volumes, which pushed the clearance rate down to a year low reporting a clearance rate of 78.6%, well below the 80.7% recorded the previous weekend.

A total of 1149 homes were reported listed for auction in Melbourne on Saturday, just below the 1248 May record auction the previous weekend and well ahead of the 82 auctioned over the same weekend last year.

Melbourne reached a median price of $1,093,000 for houses sold at auction on the weekend, which was 4.1% higher than the $1,050,000 recorded over the previous weekend and up 8.9% on the 1,002,944 recorded over the same weekend last year.

May 17, 2021May 18, 2021

The Global House Price Boom Could Haunt The Recovery From Covid-19

The year of the pandemic saw the largest increase in global house prices since the U.S. housing boom of the mid-2000s. And there is no sign the rally is coming to an end.

That provides immediate economic support for the global recovery from Covid-19. But a prolonged house price upswing would mean big new problems for both financial stability. And it could result in economic strife if middle-class citizens accustomed to a one-way housing bet suddenly find the rug pulled out from beneath them down the line.

House prices rose by 4.91% across 16 economies monitored by the Federal Reserve Bank of Dallas last year, the sharpest increase since 2006. The move was large by the standards of a normal year—but explosive in the context of a global economic contraction of around 3.3%.

And the trend shows little sign of abating. The U.S. housing market is millions of homes short of buyer demand. Prices have climbed in places as varied as the eurozone, South Korea, Australia, New Zealand and Canada.

Booming prices reflect a major difference between the liftoff from the financial crisis of 2008 and the nascent post-pandemic boom. The financial crisis emanated from a fragile, undercapitalized banking sector: The obvious postcrisis response was to lend much more conservatively. But at the beginning of last year, banks were far less overextended and, with greater government support, were much more rapidly able to pass on interest rate cuts to borrowers.

At the same time, banks are far more exposed to housing markets than they once were. Across 18 advanced economies, mortgage lending has grown from around a third of total bank lending in 1960 to very nearly 60%. The financial crisis seems to have only been a brief speed bump in this secular trend.

The experience of countries that didn’t have a major banking crisis in 2008 shows what could happen on a far larger scale now. Most countries with large run-ups in household debt during the last decade—China, South Korea, Thailand, Canada and Sweden—were places where banks didn’t suffer in 2008. And rather than the brief, one-off increase in leverage of the kind many analysts expect following the pandemic today, household borrowing climbed continually over the following decade.

Many such countries have attempted to slow down rapid increases in house prices. The Korean government has enacted dozens of individual tweaks to tax and lending regulations. The latest Canadian federal budget announced a tax on vacant and underused property owned by foreigners, following existing levies in Vancouver and Toronto. So far, few measures have had an impact large enough to stall the boom.

Earlier this year, Swedish central bank governor Stefan Ingves compared the household debt situation to sitting on a volcano. The analogy is apt, given how sensitive the health of economies is to increased leverage among households in particular. Economists Atif Mian, Amir Sufi and Emil Verner have published research demonstrating that burgeoning household debt tends to slow down economic growth.

That’s not to say there’s nothing to be done. There have been a small number of successes in controlling and preventing house price booms to note. They bear much closer examination for policy makers in the rest of the world.

Japan’s case is the most obvious. The country’s lack of zoning restrictions and rent controls are regularly credited with the country’s flat home prices, particularly in Tokyo where the total population is still increasing. All the same, making fair international comparisons is difficult because interest rates have been so much lower than other parts of the world for so much longer, and overall economic growth has been so weak.

According to a study published in the Journal of Housing Economics in 2018, Singapore’s flurry of efforts to cool house prices between 2009 and 2013 also seems to have helped to stall the country’s buoyant house price growth. The measures included higher taxes on home-flipping, higher deposit requirements for second-time buyers, longer residential loan terms, and caps on the amount of a borrower’s income that could be spent on home loan repayments. But Singapore is also an example of how difficult such progress is to defend: Prices jumped to a new record in the first quarter of the year. And Singapore’s market is unique in other respects—the lion’s share of housing is publicly developed for Singaporeans to purchase, and homeownership rates are among the highest in the world.

There are other areas to look at. Outright taxes on the value of houses, the land beneath them, or both are popular with economists but have yet to find their way into public policy in most parts of the world. Even without such radical steps, fixing other positive biases housing receives in tax systems around the world would be a good start.

Dealing with an asset that is a totemic symbol of middle-class security and the main source of household wealth but is also a major financial stability risk is an unenviable task for policy makers.

But with many parts of the world already in the foothills of a new house price boom, it’s an issue that must be considered urgently if they want to avoid the mistakes of the past.

May 14, 2021

Prestige Property: 32 Becker Place, Mount Ommaney, QLD

A suspended concrete tri-level glass and stone mansion perched on the hill in Mount Ommaney, Brisbane, is one of the city’s most elevated waterfront properties.

Boasting panoramic views of Brisbane River, as well as distant mountain range views of Cunningham’s Gap, comes this 5-bedroom, 5-bathroom, 12-car parking pile spread across a secluded 2858sqm location.

Inside, a three-storey central void is reminiscent of five-star international hotels – giving an immense sense of space, further elevated by soaring panes of glass and a sweeping circular staircase. Drawing the eye in once more is a stone-clad internal lift that services all floors.

The top level – facing the river – sees the master bedroom, complete with ensuite, walk-in-robe, and nearby study or nursery. The master bedroom is surrounded by private rooftop deck.

The middle level is the core of the home, with the living, dining and kitchen space all located here. The kitchen boasts a quartz island bench and butler’s kitchen alongside a powder room. A custom-built, spacious bar – made of French Oak – which opens out onto a spacious deck is ideal for drinking in the views.

Also on the middle level is the children’s wing – featuring three bedrooms, each with individual balconies. One enjoys an ensuite, while the other two share a bathroom.

The lower level also homes a 10-seat, 3- tired French-inspired cinema, replete with a cocktail cabinet and games table area. Further, a custom-built Alpine stone bar and backs ono an enormous rumpus room with a full-sized lounge and pool table.

Also on the lower level is a bedroom which acts well as a guest room. Also here is another luxurious bathroom.

The lower level also grants access – via stacking doors – to the alfresco entertaining area complete with magnesium infinity pool, 8-seater spa and outside pool house with shower and toilet.

Located 25-minutes to Brisbane’s CBD and an hour’s drive to the Gold Coast, the grand residence enjoys the conveniences of Mount Ommaney without forgoing its relaxed lifestyle.

The listing is with NGU Real Estate Toowong’s Emil Juresic (+61 481 601 793), POA. ngurealestate.com.au

May 14, 2021May 14, 2021

20 Perth Suburbs Grow By 10% Or More This Year

As an indication of just how hot the property market is right now across Australia’s capitals; 20 Perth suburbs have recorded a median house sale price growth of 10% or more in 2021.

According to Real Estate Institute of Western Australia (REIWA) President Damian Collins, those figures have met or surpassed forecasting for 15% price growth in Perth by the end of the 2021 calendar year.

“A total of 20 suburbs have seen their median house sale price increase by 10 per cent or more since the start of the year.

“Bicton has experienced the strongest price growth in the first four months of the year, with its median house price increasing 20 per cent to $1.14 million between 31 December 2020 and 30 April 2021. This was followed by North Beach (up 17 per cent to $1.05 million), Sorrento (up 16 per cent to $1.118 million), and Applecross (up 15 per cent to $1.79 million),” Mr Collins said.

The data, courtesy of reiwa.com, reveals that growth suburbs come from both sides of the curve with nine suburbs beneath Perth median house sale price of $508,000 and 11 above – eight of those in the $1 million-plus price range.

“The recovery of the market is widespread across Greater Perth. Six to eight months ago it was mainly the higher end of the market showing strong growth, but now we are seeing movement across the board,” Mr Collins said.

See the full list of suburbs below:

SUBURB	MEDIAN HOUSE SALE PRICE DEC 2020	MEDIAN HOUSE SALE PRICE APR 2021	PERCENTAGE CHANGE
1. Bicton	$950,000	$1.14 million	20%
2. North Beach	$900,000	$1.05 million	17%
3. Sorrento	$960,000	$1.118 million	16%
4. Applecross	$1.56 million	$1.79 million	15%
5. Claremont	$1.503 million	$1.7 million	13%
6. Medina	$230,000	$260,000	13%
7. Maddington	$283,500	$320,000	13%
8. Palmyra	$635,000	$715,000	13%
9. Coodanup	$292,550	$329,000	12%
10. Attadale	$1.165 million	$1.3 million	12%
11. Parmelia	$247,000	$275,000	11%
12. City Beach	$1.8 million	$2 million	11%
13. Wembley Downs	$975,000	$1.08 million	11%
14. Como	$850,000	$940,000	11%
15. Darlington	$620,000	$685,000	10%
16. Orelia	$240,000	$265,000	10%
17. Redcliffe	$399,000	$440,000	10%
18. Bertram	$335,000	$369,000	10%
19. Brookdale	$252,000	$277,500	10%
20. Girrawheen	$300,000	$330,000	10%

May 14, 2021

Alibaba’s US$2.8 Billion Fine Isn’t its Only Problem

Chinese regulators recently slapped a US$2.8 billion fine on Alibaba. But the company actually has a larger problem: maintaining its lead over the competition.

The Chinese e-commerce giant reported an operating loss of $1.2 billion for the quarter ending in March. The loss was mostly because Alibaba booked the $2.8 billion fine for anticompetitive behaviour in that quarter. Excluding the fine, Alibaba’s operating profit would have risen 48% from a year earlier. Regulators say the company forced merchants to sell goods exclusively on its platform instead of those of its rivals, in a practice called er xuan yi, meaning “choose one out of two.”

It was a difficult year for Alibaba regulator-wise—its finance affiliate Ant Group saw its initial public offering derailed—but it has been a great year for business. Alibaba’s e-commerce and cloud businesses benefited from the pandemic. Revenue last quarter grew 64% from a year earlier. Partly that was due to the addition of Sun Art, a supermarket chain Alibaba acquired last year, but even excluding that, its sales grew 40%.

But the company needs to invest more to fend off the competition. With the latest regulatory scrutiny, it might also need to spend more to keep merchants happy. The company’s adjusted earnings before interest, taxes, depreciation and amortization, which excludes the one-off fine, grew only 18% year-over-year—implying shrinking margins. Alibaba has been putting money into food delivery and grocery e-commerce. The latter in particular faces strong competition from others as all Chinese tech giants see this as a chance to get their hands on relatively untapped rural areas. The business is unlikely to be profitable in the near future.

Apart from usual rivals JD.com and Pinduoduo, Alibaba could face competition from Tencent. Tencent’s WeChat has increasingly become a platform for shopping through its mini-programs, basically apps within the chat app. Merchants and even e-commerce platforms like JD.com can do their businesses through these mini-programs. Tencent said in January gross merchandise sales for physical goods on mini-programs last year grew 154% from a year earlier, without indicating the actual amount.

Live-streaming e-commerce is another area that is growing fast. Kuaishou and Douyin, the Chinese version of TikTok, have seen strong growth in this area, even though they are still much smaller than Alibaba.

Alibaba has managed to come out of an eventful year in a good shape. There are, however, still plenty of challenges ahead: Both regulators and the competition are hot on its tail.