Foreign Investment in Commercial Property Hits Record Level 1

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Thursday, January 22nd, 2015
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Foreign investment in Australian commercial real estate has touched a new record, with overseas interests buying one in three non-residential buildings sold.

A record $28.1 billion was spent on commercial real estate last year, with most of that spent on office space, research from property group Dexus found.

The proportion of foreign investment in commercial property also hit a record in 2014, comprising 32 per cent of all transactions.

Chinese investors were behind the largest office space transactions during the December quarter, buying two properties in central Sydney for $390 million and $425 million.

Dexus’s general manager of research Peter Studley said foreigners were attracted to Australia’s stable economy.

“Foreign investors like Australian real estate due to the high income return, the quality of the assets and Australia’s relatively stable economic growth outlook,” he said.

Demand for office space was improving in Sydney and Melbourne, but the sector was slower in Brisbane and Perth, the research found.

Mr Studley forecast another good year for commercial property, which includes office, industrial and retail space.

“Transaction activity is expected to remain strong in 2015,” he said.

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  1. Kyle G.

    When will regulators intervene in this large-scale seizure of domestic assets by foreign nationals? I'm all for free trade and low tariffs, but real estate is fundamentally different from other goods and services in the economy – supply in desirable areas is constrained.