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
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
