Foreign investment in the residential property market have been a common sight in the past couple of years, with many saying that they are often paying inflated prices thanks to the favourable potential for returns in Australia.
And now it seems like the situation might be the same in the commercial market, with a new study showing that overseas buyers are paying way more than market value for spaces because they feel yields are better than those they could enjoy in other nations.
Australian Unity head of property, mortgages and capital markets Mark Pratt, said of his company's new study that yields are still potentially high for investors in spite of softness in the economy, vacancy rates and relatively low confidence at the moment.
“We have an extraordinary level of cash looking to invest in Australia, domestically and offshore, driven by Australia being seen as a safe haven destination for capital but also, whilst we have historically low interest rates, they are, in a relative sense, higher than most jurisdictions," he told Property Observer.
Australian Unity said that many people are paying up to 20 per cent more than market value for property in the commercial markets.
Posted by Steve Douglas
And now it seems like the situation might be the same in the commercial market, with a new study showing that overseas buyers are paying way more than market value for spaces because they feel yields are better than those they could enjoy in other nations.
Australian Unity head of property, mortgages and capital markets Mark Pratt, said of his company's new study that yields are still potentially high for investors in spite of softness in the economy, vacancy rates and relatively low confidence at the moment.
“We have an extraordinary level of cash looking to invest in Australia, domestically and offshore, driven by Australia being seen as a safe haven destination for capital but also, whilst we have historically low interest rates, they are, in a relative sense, higher than most jurisdictions," he told Property Observer.
Australian Unity said that many people are paying up to 20 per cent more than market value for property in the commercial markets.
Posted by Steve Douglas
