2013 Australian Capital Markets Report: A Shift in Buyer Profile

The first half of 2013 has been very active for real estate investment globally.

During the first quarter of 2013, there was A$78.8 billion of real estate sales recorded globally, a 35% increase from the same time last year and the second highest quarterly volume since 2008.

With low interest rates in most developed markets, there continues to be high demand for high yielding assets such as real estate.

Improved availability of finance, lower funding costs and a re-capitalised and confident AREIT sector has also been a key driver of investment activity in Australia.

So far in 2013, offshore buyers continue to be a dominant force, continuing the high levels of investment of 2012.

Local investors – both private and institutional - are becoming increasingly active, with more re-entering the market, increasing their allocations to property or significantly adjusting their strategies.

Yield compression is occurring for quality stock, particularly in the commercial and industrial sectors, with retail expected to follow.

In the 2013 Capital Markets report, Colliers International look at the gradual shift in the buyer profile that has taken place in the last 12 months.

They also analyse foreign investment appetite for Australian property, and what macro factors will impact this in the future.

Finally, they discuss the yield ‘conundrum’ in Australia and where we see yields and asset values heading in this country.

Click here for the full Australian Capital Markets Report report

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