Global Power | Local Knowledge | Uniquely Personal

Foreign investors boost the office property market in Sydney

More foreign buyers are now putting their money into the commercial sector, it has been found.
A greater number of foreign investors are now looking to make a move away from the residential property market in Australia, turning their eye towards the commercial sector instead, it has been reported.

According to new reports from Savills, Sydney has become a hot bed of activity for those from other nations. 

It comes at a time when house prices at Australia continue to rise, and it may well be the case that office investors are seeking the chance to grab a bargain in other sectors that are not as crowded.

"Foreign investors, particularly from Asia, have for a number of years been drawn to the Australian market but it has never been as prolific as what we are now seeing," said Simon Hemphill, Savills director of NSW Research.

He added that in the past year, foreign investors accounted for 46 per cent of all commercial office sales in Sydney's CBD and Metro areas. 

Savills said that the reason many are now flocking to Australia is simple - the yields are very attractive. Whereas in the likes of Taiwan yields currently sit at around two per cent, office returns in Sydney currently sit at an average of six per cent.

Posted by Ravin Chatlani

DISCLAIMER: 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.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now