Australian commercial property ‘safe haven’

Australian commercial property ‘safe haven’

Posted on Monday, May 14 2012 at 2:52 PM

Investors from Hong Kong, Singapore, Malaysia and China are turning to the Australian commercial property market in search of higher rental returns, according to

National sales
manager for Australia and New Zealand Corey Weekes says Australia’s steady
economy and commercial property sector, particularly in the areas connected
with the resources boom, offers Asian investors attractive yields to preserve
and grow their wealth.

cooling measures for property investment by Asian governments are also driving
many Asian investors to explore offshore options like Australia,” Weekes say.

institutions and private investors accounted for 37 per cent of Australia’s
commercial sale transactions in 2011.

City sales
director with Knight Frank, John Bowie Wilson, adds the number of offshore
investors interested in the Australian commercial market is increasing on a
daily basis, as prices rise in Singapore and as Hong Kong awaits a currency
correction against the US dollar.

“Asian investors
are typically capital-rich and have a good understanding of the requirements
when investing in Australian property,” Wilson says.

“The recent drop
in interest rates is helping local private and institutional investors to
return to commercial property investments, however it’s still a challenge for
many domestic investors to raise capital.”

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