Finance & Mortgage

World Demand for Sydney Commercial Property Rising

Sydney, Australia has been ranked the 10th most traded commercial real investment market in the world and investment advisers are foreseeing that it's only going to grow bigger. They figure there will be big money spent on offices, malls and logistical facilities which was reported in a post in afr.com. The largest city Down Under managed to lure in over $US8.2 billion worth of investment in real estate as of June.  This is a massive jump of 16 percent from the previous year according to DTZ, a global real estate services group.

In continuation of the same afr.com report, it was also mentioned that next to Tokyo, Sydney is the second most traded real estate market in Asia Pacific besting other top commercial real estate hubs Hong Kong and Singapore. DTZ CEO for Australia and New Zealand James Patterson says "The results confirm the importance of Sydney as a major investment destination, not only in Asia Pacific but also globally." Low interest rates pushed global investment into commercial real estate and increased exposure by up to 15% in the first six monthes of 2015. A total of $US318 billion was invested by Europe and North America on London and Manhattan which are the top two most traded cities in the world.

As confirmation of this huge demand for Sydney's commercial real estate, it was reported in dailytelegraph.com.au that China's government is leading the charge in a buying spree, spending hundreds of millions of dollars on Australian property just last year. They bought prime commercial properties in Sydney's CBD and inner suburbs.

In the same dailytelegraph.com.au post, while there are many Chinese private investors buying properties in Sydney, bulk of the purchases come from their own government which amounted to $260 million in 2014 alone. Shanghai's Greenland group bought the Lucent project at North Sydney for a whopping $58 million which is just one of the major acquisitions.

 

 

 


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