Asian investors buying big in Sydney and Melbourne
Australian commercial properties are drawing interest from investors across Asia, property group, CBRE, reveals.
Research found that Sydney commercial assets attracted US$2.2 billion in Asian capital inflows, making it the third most popular destination globally.
Melbourne was ranked sixth on the list of preferred investment locations for Asian investors, as capital flows into the continent climbed 63 per cent on the same period last year.
CBRE reported that Asian investors placed US$19 billion of outbound capital in commercial property globally in the first six months of the year, with China representing the largest source of the funds.
While Sydney and Melbourne were popular, London (US$3.8 billion) and New York (US$3.7 billion) were the top destinations for Asian investors.
CBRE Research Asia Pacific senior director, Ada Choi, said the Australian cities were seen as "attractive investments with limited downside risk, due in part to the relative affordability of stable income assets compared to available domestic stock".
"As more Asian investors are looking abroad to diversify a growing pool of domestic wealth, overseas market dynamics such as stable fundamentals, regulatory support and market transparency will continue to drive them to pursue offshore opportunities," Choi said.
AUTHOR
Nicholas O'Donoghue
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