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Foreign investment in Australian property soars as Sydney CBD stars
- From: Dow Jones Newswires
- September 28, 2011
Australia's commercial property is pulling in the foreign investment crowd. Picture: Glenn Barnes Source: The Courier-Mail
FOREIGN investment in Australia's commercial property market surged 41 per cent in the third quarter of 2011, driven largely by increased interest in Sydney's central business district, according to real estate consultants DTZ Holdings.
The increased interest in Australia's commercial property comes despite a robust local currency that - prior to a slide in the last two weeks - sat at levels not seen in 30 years against the US dollar.For the third quarter, commercial real estate investment in Australia declined 27 per cent overall to $2.5 billion, but foreign investment into Australia marked its fourth consecutive quarterly rise, with four of the five largest deals in the quarter for offshore investors coming in Sydney.
The latest deal was the sale of 1 York Street, Sydney to Chinese firm HNA Group for $117.7 million.
Overall, 90 per cent of all foreign investment came from Asia, with companies such as K-REIT, HNA Group, Memcorp and Pembroke Real Estate all purchasing Sydney central business district property during the quarter.
The interest in Sydney comes as the city's residential property has so far side-stepped a broader decline in Australian home prices. Housing prices across the country are off 3 per cent this year, according to RP Data-Rismark, as affordability and cost of living constraints weigh on buying appetite.
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