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Asian buyers attracted by yield...

Asian buyers attracted by yields

Asian investors are increasingly being attracted to Australia because of the potential favourable returns on offer.

Asian investors are increasingly being attracted to Australia because of the potential favourable returns on offer.

CBRE's Asia-Pacific head of research Dr Henry Chin explained offshore investors are keen to look at alternative markets to the US and Japan.

He explained the average office yields in Sydney are at 6.7 per cent, while returns in Melbourne are 6.1 per cent - more favourable than other Asia Pacific markets.

Investors have also been attracted by the recent fall in interest rates, the weakening of the Australian dollar and the potential rental growth expectations.

CBRE city sales director Mark Wizel added more than $3.1 billion has been invested in the central area of Melbourne over the past two years - largely coming from Asian-based investors.

"While the pioneers have been the privates, this is giving confidence to the institutional investors to follow suit and attention is shifting to core and value-add assets," Mr Wizel said.

Posted by Steve Douglas

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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