Foreign Property Investors Splurge $11 Billion
US, Singaporean and Chinese investors dominated Australia’s off-shore commercial property investment market in 2015 with 87 per cent (China 30%,Singapore 29%, US 28%) of the more than $11 billion in foreign investment in Australia, according to Savills Australia research.
Nearly 70 per cent - $7.6 billion – was spent on office property, $1.73 billion on industrial and $1.82 billion on retail property transactions for a total of $11.18 billion, a staggering 58 per cent up on the $7.05 billion spent in 2014.
Savills’ National Head of Research, Tony Crabb said the upward trend in foreign investment in Australian commercial property began in 2005 at $1.2 billion and, with the exception of 2012, has rapidly escalated post-GFC spurred by Australia’s relatively stable economic climate. The off-shore spend has now been in record territory for three consecutive years.
Mr Crabb said collectively Asian countries accounted for more inward investment than all other regions at $7.4 billion including China $3.34bn and Singapore $3.28bn along with Japan, Hong Kong, Malaysia and Taiwan.
He said the foreign play accounted for 38 per cent (up from 22 per cent in 2014) of the more than $29 billion worth of commercial property transacted nationally in the 12 months to December.
