Asian investors will dominate when it comes to the purchase of large office sales in Australia this year, a new report has claimed.
The report, published by real estate agent Jones Lang LaSalle, reveals that Asian private equity groups and sovereign wealth funds accounted for 40 per cent of acquisitions in 2010.
John Talbot, managing director of investors and advisory at Jones Lang LaSalle, told the Australian newspaper that the capitalisation rate for office buildings had risen by as much as 0.25 per cent by the mid point of last year.
"If the demand continues, we could see cap rates tighten by between 0.25 to 0.5 per cent in the next 12 to 18 months," he said.
Mr Talbot went on to say to the newspaper that a rise in the price of office buildings would not be "across the board" but limited to high-quality buildings in certain central business districts.
A recent report from the Australian Bureau of Statistics revealed that those living in property in Australia's major cities are less likely to die of heart failure than those who live outside of these areas.
Posted by Ravin Chatlani
