Australian commercial property is being snapped up by a fresh wave of foreign investors after figures show offshore investment up by 12 per cent in 2014.
After the surge in foreign purchases of commercial property, the total value of offshore investment last year was $6.2 billion, which accounted for 23 per cent of the entire commercial property market.
The market in 2015 looks set to continue to attract more waves of this foreign investment as the economic conditions are currently returning stronger yields in Australia than other markets.
Examples of the big moves and shakes in Australian commercial property last year included:
- Billionaire Hui Wing Mau’s Shimano Property who bought 175 Liverpool St in Sydney for over $390 million.
- The current Gold Fields House in Sydney purchase worth $425 million by Dalian Wanda.
- 628 Bourke St in Melbourne went for $129 million to the M&G Asia Property Fund.
- Invesco Real Estate’s purchase of 321 Exhibition St in Melbourne for $208 million.
- Industrial assets in NSW and Queensland going for $220 million to Logos Property.
As mentioned, the domestic economic conditions are attracting the foreign interest, with the falling Aussie dollar making offices, shops and industrial facilities cheaper for offshore investors.
CBRE’s Richard Butler told The Age that around two thirds of foreign investment now came from the Asia Pacific.
“The attraction is stronger economic growth, higher interest rates, higher yields,” he said.