Global investors target Sydney
More than half of international property investors plan to expand their portfolios this year, with Sydney the fourth most popular place to purchase assets, research reveals.
Data from property group, CBRE's Global Investor Intentions Survey 2015, found that Sydney's high returns and strengthening office market, had made it a popular choice with investors.
The survey found 16 per cent of investors said they planned to invest in Sydney, while 30 per cent planned to make purchases in London, 22 per cent Tokyo and 18 per cent San Francisco.
CBRE national director, capital markets, Josh Cullen, investors were focused on the opportunities available in the Sydney market.
"This ranking is no surprise, with Australia offering some of the highest returns on a global basis across all our core sectors, with returns on secondary assets being even more attractive," he said.
"We are starting to see positive signs in the office sector in a range of Australian CBD markets, which will underpin growth expectations."
Meanwhile, CBRE global chief economist, Richard Barkham, said economic conditions had made investment in property more attractive than other asset classes.
"The ‘new normal' economic environment of moderate growth, low interest rates and compressing bond yields continue to drive investment in commercial real estate," he said.
"We also observe the continuing globalization of the investment market, reflected by the 40 percent y-o-y growth in cross-regional capital flows in 2014—a figure well above the growth rate for the market overall.
"The survey findings strengthen our view that overall volumes and cross-regional investment will increase in 2015."
AUTHOR
Nicholas O'Donoghue
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