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Australian property investment to strengthen in 2015

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The property investment market in Australia is likely to pick up next year as both local and foreign activity gains momentum, according to a new report.

Colliers International recently released its 2015 Property Outlook, which focused on property markets and investment in the Asia Pacific region. It found that there will be a "continued increase in investment volumes" across the whole area, thanks largely to strengthening tenant demand.

According to the report, Australia was singled out as a hive of activity, with New South Wales billed as a "growth economy".

"Ownership of Australian property continued to become concentrated amongst fewer owners. Strong flows of capital continued to enter the Australian property market both from offshore and overseas," explained John Kenny, chief executive of Colliers International - Australia & New Zealand.

"By mid-November, transaction volumes were well up on 2013 levels and although total volumes are still some way off the 2007 peak, some sectors such as the national industrial market and the Melbourne CBD office market have now exceeded volumes in that year."

Mr Kenny added that the majority of property sales are now being made to Australian investors. He backed this up with insight from the latest Colliers Global Investor Sentiment Survey, which revealed that Australian investors are among the most confident in the world.

However, foreign investment continued to be a hot topic, with a lot of activity in Asia Pacific countries coming from overseas - especially from China. 

"There is pent-up underlying demand from investors, primarily due to the lack of stock, and that will gradually be satisfied," revealed  Dennis Yeo, CEO - Asia at Colliers International.

'However, there are increasing challenges for investors looking overseas, not least the narrowing of the gap between yields in Asia and in overseas markets."

Date Published: 15 Dec 2014
Category: General News

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