Powered by MOMENTUM MEDIA
realestatebusiness logo

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.

“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.”

Advertisement
Advertisement

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

Discover some of the top news stories impacting the mortgages space in this weekly wrap-up. ...

The central bank should have raised the official cash rate earlier than May given rising inflation, according to economist Stephen Koukoul...

In the face of ever-increasing competition from fintechs in the buy now, pay later space, NAB has nabbed its share by launching its first BN...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

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