Global Power | Local Knowledge | Uniquely Personal
中文

Foreign property investors spen...

Foreign property investors spending big in commercial market

Commercial property investors are spending more than market value thanks to favourable yields.
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

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.

Subscribe Now