Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Sydney posts record year of office investment

Strong demand for commercial property in Sydney’s CBD continues, with the harbourside capital posting record year-on-year growth.

According to property group Savills, Sydney office transactions totalled $5.8 billion in the 12 months to June 2015 – up 78 per cent on the previous 12 months, and up on the capital’s five-year average of $2.96 billion.

Savills revealed that institutions that consist of funds, trusts and syndicates were the most aggressive investors, purchasing $3.1 billion (54 per cent) in Sydney’s CBD, followed by foreign investors at $2.4 billion.

Advertisement
Advertisement

“The influence of overseas investors in the market continues to have a profound effect in Sydney’s CBD, as evidenced by the growing level of transactions over the last four years, with foreign investors having now purchased in excess of $6 billion in that four-year period,” Savills research analyst Houssam Yakzan said.

“Australia has two key elements that offshore investors are looking for: a stable and safe environment, coupled with higher yields than they are able to achieve in their local markets.”

Furthermore, average yields for A-grade buildings in Sydney’s CBD now average 6.50 per cent – a 13-basis-point increase over the last 12 months, according to Savills.

Sydney posts record year of office investment
mortgagebusiness

Latest News

A lender has announced the appointment of a new chief executive officer. ...

The prudential regulator has granted a restricted banking licence to a Sydney-based challenger bank. ...

Interest rate cuts and changes to mortgage serviceability guidance have not been enough to spark a quarter-on-quarter increase in home loan ...

FROM THE WEB
podcast

LATEST PODCAST: How lenders are attracting first home buyers

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.