The GFC Lesson Shaping Niecon’s Third Generation

When the GFC hit his family’s projects, Con Nikiforides made sure every subbie got paid. The family almost lost everything. Now his three sons are running Niecon their own way, building on the company’s people-first property legacy. The brothers behind Niecon did not always plan to be developers. Their father trained as a gemologist and only came into the business when his own father, Bill, fell ill and called him home to take over the shop. Con went on to build residential towers among the Gold Coast’s best-known, including Aqua at Labrador and the Oracle at Broadbeach. When the global financial crisis hit, his sons say, what he protected was not the balance sheet but the name. “He made sure every subbie got paid and every person that worked on those projects, especially the Oracle, was paid,” John says. “And there was no one ... picketing outside the house.” It is a lesson the third generation carries into Reflections on the Broadwater at Biggera Waters, Niecon’s 24th project. The GFC lesson: people first Con, John says, was adamant about doing the right thing by his subcontractors because he wanted his sons to have a future in the town. His rule was simple: “You’re only as good as the people you work with.” “You’ve got to operate with integrity,” John says. “And ... to remain focused, diligent and disciplined in your approach. No matter what the obstacles are, you’ve just got to keep moving forward.” ▲ The Nikiforides brothers say they want to build their projects at an attainable price for Gold Coast residents. Does the experience make them risk averse? “A little bit of both,” James says. It stops them going “gung-ho into a tsunami”, but gives them confidence once they are under way, he says. From Canberra to the Coast The family’s development story starts with grandfather Bill, who began in Canberra in 1969 with small-format commercial and retail work. He moved to the Gold Coast in 1978 and switched to residential. James remembers a “very large, charismatic man” who mentored young developers who came to the Coast. His grandmother’s house had the same open-door policy: “a very Greek way of people coming over: let’s have a meal, drop by any time, talk about the market, talk about life”. Con took the business upmarket. He pushed into higher-end residential product with big, well-finished apartments and up-spec facilities, aimed at the population he believed the Coast would one day have. “It was a bit ahead of time,” James says. His Coolangatta projects, Reflections on the Sea and Nevada by the Sea, now sit in markets “about 150 per cent more expensive than they were back then”. The Oracle and the fall The Oracle was the high point for Niecon—and the breaking point. The $850 million Broadbeach scheme, developed by Niecon subsidiary South Sky Investments had twin towers, 505 luxury apartments, a resort, retail and commercial office space. It was the first truly residential mixed-use project in the beachside suburb and revamped it as the upmarket heart of the Glitter Strip. ▲ The Oracle at Broadbeach: The high point for Niecon was almost its swan song. Image: DBI Architects During construction in 2010, the subsidiary vehicle entered receivership as the GFC wrought havoc on property prices. At the time, KordaMentha’s Mark Mentha and Mark Korda took charge of the Oracle, saying the vast majority of apartments were pre-sold and the financiers had funded the project to completion. The Oracle and Niecon ultimately survived the turmoil, but it would be some time before the third generation of Nikiforides donned the hard hats. Taking control of their destiny The brothers, William, James and John, have brought their expertise into different facets of the business. John says William is the “spearhead” as the development director. James heads sales and marketing and is the “resident funny man”, while John is deeply involved in running the business. “We weren’t all joining a business to try and do the same thing, because that is always going to end in disaster,” John says. And while the brothers may have robust conversations, they all acknowledge it is a privilege to continue their family’s legacy together. But the Nikiforides family is not resting on its laurels. For about 20 years, Niecon used third-party builders because it “made commercial sense,” John says. The market dynamics have shifted. The brothers have set up their own construction arm, 3N Construct, and are delivering Reflections themselves. “For us to be able to take control of our own destiny and to really deliver what we want to deliver, and the level that we want to deliver it, bringing the construction team in-house is the way to go,” John says. ▲ Niecon’s construction arm will get to work on Reflections Biggera Waters early next year, with completion slated for end of 2028. It reflects a shift in what keeps developers awake. “The biggest challenge used to be, is the market going to hold up?” James says. “Now it feels much more like, are we going to be able to deliver in this market?” Building for locals Reflections is aimed at Gold Coasters, and especially at the friends who left school and left town to find work. “We build and develop for local markets,” James says. “You never cater development for interstate or overseas purchasers, because they stop coming.” The brothers say they spent “an inordinate amount of time agonising over the smallest things”, redesigning the floorplates repeatedly. They could have gone to three or four apartments a floor, but “trying to sell those things at five million is not really trying to cater to these local Gold Coasters”. The goal for two-bedders: “We’d love to get under one, but at least not more than two.” About 20 per cent is sold and unconditional. Settlements have been slower, and “not closing in two or three weeks”, James says. But interest has been strong, and two buyers from their previous project have already bought again. The developer is pushing more attainable prices, starting from $1.165 million for a two-bedroom apartment. “[The market has] definitely matured, and I think that the industry that’s here now is far more diverse, far more mature. It’s not just people saying well that’s a holiday home, these are people who are making their lives here. “But the biggest benefit to the Gold Coast is the internet, I’d say. Because of the internet, people can now have the lifestyle that they’ve always dreamed of and still make a living on the coast.” The tortoise and the hare approach When the brothers assess a site, the test is personal, according to James. “Is this somewhere we would want to live? And is this somewhere that we would want mum to be living?” James credits his Greek upbringing for the guiding metaphor. “We read a lot of Aesop’s fables growing up and the fable that sticks with us the most is the tortoise and the hare. We don’t mind being the tortoise. Slow and steady wins the race.” They do not claim to have beaten the cycle. “No market is beyond a boom-bust,” James says, “but the bust is nowhere near what it used to be.” And what would Con, who died in 2017 aged just 56, make of Reflections? “I’d love to hear his opinion, I’ll tell you that,” John says. “But he probably has some notes.” Then, more seriously: he would be “pleasantly surprised and quite proud”. Working with family is not for the faint-hearted, the brothers add, but it is easier “as long as we’ve eaten”.

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Taryn Paris
Mon 12 Oct 26

The GFC Lesson Shaping Niecon’s Third Generation

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