(SYDNEY) Foreign investment in Australia's office market climbed to a record high in the past 12 months as the economy's resilience continued to draw investors seeking growth, property firm CBRE said yesterday.
In the 12 months to June, major office sales totalled A$2.4 billion (S$2.8 billion) of which 70 per cent was spent by offshore investors, CBRE said.
'International investors are coming to Australia with firm mandates approved and the equity to spend. They are confident about our real estate and see exceptionally good growth prospects,' CBRE regional director Rob Sewell said in a statement. 'If the assets fit the brief, they come to the table and bid.'
Around 49 per cent of buyers were from Asia with South Korean investors accounting for 28 per cent, due in part to the South Korean National Pension Service's purchase of Sydney's Aurora Place for A$685 million, CBRE said.
German investors accounted for about 15 per cent of the buys and Swiss players represented 5 per cent.
Australia's economy remained resilient with its jobless rate at 5.4 per cent, compared with 9.7 per cent in the United States and around 10 per cent for Europe.
CBRE said yields on the office buildings purchased by offshore investors ranged from 7.5 per cent to 8 per cent, and they were likely to continue to dominate the market in the second half of the year. -- Reuters
Source: Business Times, 10 Jun 2010