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Offshore investors to target Canberra

Offshore investors to target Canberra

The commercial property market of Australia’s capital city is expected to attract a growing number of offshore investors this year, according to one property group.

Nick Perdue, Knight Frank’s associate director of institutional sales in Canberra, says there are numerous signs pointing to a stronger commercial market and more diversified attention from investors in the nation’s capital in 2016.

“Recent positive economic signs in Canberra are expected to help underlying market fundamentals. This includes a far more stable vacancy rate, stable incentives and forecast rental growth – all signs that the Canberra commercial market has reached the lowest end of its cycle,” he said.

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Mr Perdue said Asian investors in particular are looking increasingly towards the Canberra market due to its secure, long-term government tenants.

“The current wave of Asian capital is looking to diversify away from Australia’s core markets and into higher-yielding regions, such as Canberra,” he said.

“With some volatility in global markets, Canberra is increasingly being considered as a safe haven within the context of the wider Australian marketplace. Australia remains attractive for offshore investors who are drawn by the low Australian dollar, cost-effective borrowing and government stability. And should the global volatility continue, there will be a case for the RBA to keep rates on hold, adding to the attractiveness of Canberra as a market.”

Mr Perdue noted that while Canberra’s commercial sector has not yet seen the levels of demand from Chinese investors that other capital cities have seen, this trend could change.

[Related: Offshore investors to boost commercial property market]

Offshore investors to target Canberra
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