Australian office market most attractive in Asia-Pac region
Data from the CBRE Asia-Pacific Investor Intensions Survey 2016 found that 80 per cent of investors reported that they planned to buy at a similar level to 2015.
However, the survey noted that "buying intensions softened for the second consecutive year, mainly due to concerns over slowing regional economic growth; high asset prices; and the previous two years having been a very active period for the market".
"The increased uncertainty regarding the global economic outlook ensured core assets remained the most preferred asset type," the survey said.
"However, concerns over the high pricing of core assets and investors' desire for returns meant demand for core assets weakened compared with last year's survey.
"The survey also found a strong interest among investors for good secondary value-added assets.
"Offices remained the top sector for investors for the third consecutive year, as continued business growth in Asia Pacific.
"Investors seeking higher yields will continue to turn to alternative sectors in 2016, with the survey registering a slight increase in intentions to invest in alternative sectors such as real estate debt, student housing, retirement living and healthcare.
"Cross-border investors will continue to focus on Australia, Japan and China.
"Australia replaced China as the most attractive market this year, reflecting investors' preference for mature markets."
The survey also found that half of respondents said they planned to deploy more than US$500 million in 2016.
While the report found that buying intentions for the year ahead were down, 63 per cent of respondents said they planned to buy more than they sell.
AUTHOR
Nicholas O'Donoghue
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