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Investment Market Update

Australia : Volumes continue to soar, yields compress - Q3 2014

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A research produced by DTZ

Australia : Volumes continue to soar, yields compress - Q3 2014

Investment in Australian commercial real estate continues to soar, with $10.7bn invested in Q3 2014. As at the end of Q3, the year-to-date investment volume of $24.7bn has already exceeded 2013’s post-GFC annual record of $22.4bn.

In a continuation from Q2 2014, the quarterly result was driven by the privatisation of another A-REIT, Australand. Accordingly, with the take-over of CPA in Q2 2014, $6.3bn of the year-to-date total has been accounted for by A-REIT privatisations. In addition there were several other major transactions of $400m or above, which together accounted for $4.8bn of the total.

Foreign investors accounted for 41% ($4.4bn) of the total volume in Q3 2014. Interestingly, the source of overseas capital flowing into Australia continues to diversify. Although Asia Pacific, and Singapore in particular, accounted for the majority of investment, North American, European and investors with a global platform all acquired Australian assets over the quarter

Source : DTZ

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Keywords : DTZ