Sydney the third most favourable market for commercial real estate
Sydney has been identified as the third most favourable Asia-Pacific market for commercial real estate investment going into 2012, a new forecast says.
Titled Emerging Trends in Real Estate: Asia Pacific 2012, the report was produced by the Urban Land Institute (ULI) andPricewaterhouseCoopers (PwC) and released today (December 2) in Sydney as part of a series of market forecast events being held by the two organisations across Asia.
A total of 360 renowned real estate experts - including investors, lenders, brokers, property company representatives and developers - were consulted as part of the research process to share their knowledge and expertise.
The report says that the strength of the Sydney market is due in large part to the resilience of the Australian economy as a whole, which stands in contrast to the economic distress in Europe and the United States.
As well as ranking well in the investment potential category, Sydney moved up from 16th to ninth place in the development prospects ranking.
According to the report, Australia's market ''ticks a number of boxes'' such as ''transparency, good yields, a positive spread between rent and debt, rental growth opportunities, a great macro story and the possibility for the story to continue''.
''This environment strongly favours large, cash-rich, offshore investors,'' it said.
Meanwhile, Sydney is looking overseas for inspiration when it comes to making the NSW capital more sustainable.
In November, Sydney lord mayor Clover Moore met with a delegation of municipal leaders from Copenhagen to learn more about how the Danish city has adopted new sustainable initiatives, including enhanced cycling networks.