Asian investors 'flocking' to Sydney CBD
Sydney's CBD is a popular place for Asian investors with an interest in commercial property, according to a new report from real estate consultants DZT.
During the third quarter of 2011, DZT's research recorded a "surge" of interest in the Sydney CBD office market, with four of the five largest deals made between July 1 and September 30 made in this space.
As a percentage of overall investment, foreign expenditure on Sydney CBD commercial properties increased for the fourth quarter in a row - and 90 per cent of all overseas investment originated in Asian markets.
The remaining ten per cent of foreign investment in Australia was based largely in the United States, the research showed.
Overall, foreign investment made up a total of 41 per cent of the Australian office market - an increase from the 36 per cent recorded in Q2 of 2011.
Major firms including HNA Groupm, Memcorp, K-REIT and Pembroke Real Estate all acquired office assets in the Sydney CBD during the past three months.
However, Sydney was not the only area of focus for commercial property investment, as Victoria has also proven to be a popular location for investors throughout 2011.
In the second quarter of this year, DTZ's figures indicated that while offices dominate commercial property investment, the retail sector is also proving to be a popular alternative, with the number of transactions in this space rising by 60 per cent between Q1 and Q2.