Over the past year, offshore investors have played a lead role in driving commercial property investment in Australia during a period when many domestic asset managers were less active. While overseas investment has traditionally been dominated by buyers from within the region – particularly Singapore and Hong Kong SAR – and also from the United States, European investors have recently become far more active. The increase in European investment into Australia reflects the relatively rapid rebound in economic activity in Australia, the narrowing interest rate differential in recent years (and consequently reduced hedging costs) and a widespread desire among investors for greater geographic diversification.
3 years ago