Powered by MOMENTUM MEDIA
subscribe to our newsletter
Sydney posts record year of office investment

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

Another challenger bank has been granted a banking licence by the prudential regulator. ...

Almost half of prospective home buyers are unfamiliar with key mortgage terminology, according to new Westpac research. ...

Small businesses would be “unjustifiably disadvantaged” if limited recourse borrowing arrangements were to be abolished, the CEO of a c...

FROM THE WEB
podcast

LATEST PODCAST: The Third-Party Lending Report in summary

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?