Australia Tops the List for Asia Pacific Property Investors
According to CBRE’s Investor Intentions Survey 2016, Australia has moved to the top of the list for cross border investors in the Asia Pacific region.
The report shows that overall buying intentions of APAC real estate investors remains positive, with some 80 per cent of survey respondents saying they plan to buy at a similar level to, or higher, than in 2015.
A full 25 per cent of investors surveyed viewed Australia as the most attractive destination for their capital, taking the lead ranking ahead of Japan. Sixty per cent of respondents viewed Australia, Japan and China as the top three investment markets
in the APAC region.
In a statement announcing the survey results, CBRE Head of Research, Australia, Stephen McNabb, said the findings were supportive of another strong year for investment in the Australian commercial property market.
“With APAC accounting for three quarters of the capital inflow to Australian real estate
last year, this means we can once again expect firm investment volumes in 2016,” says McNabb. “Chinese and South Korean investors both expect to remain net purchasers this year, which will ensure continued strong inflows from these particular markets.”
South Korean investors became increasingly active in Australia’s commercial property
market last year, with the total investment
from South Korea doubling in the past 12 months.
“South Korean investors are switching to higher returning investments in offshore real estate, infrastructure, equities and hedge funds,” says Mark Granter, CBR’s Pacific Executive Managing Director, Capital Markets. “This bodes well for continued investment in Australia this year, with South Korea buyers having the potential to be significant players in the Australian property market in the years ahead.”
The office sector retained its position as the most preferred sector for investment (32 per cent) with other asset types
including hotels and resorts, student housing, healthcare, retirement living, self-storage and data centres.