Commercial property investor sentiment is still strong across most markets in the Asia Pacific despite the worsening economic situation in the United States of America and Europe, according to a new report from CB Richard Ellis.
Property investors in Australia, New Zealand and Taiwan are particularly upbeat while other key Asia Pacific markets continue to report a steady stream of buyer enquiry, said CBRE’s ViewPoint report.
Hong Kong and India were the exceptions though, as investors became more risk averse and demanded further discounts on property prices. “Barring any major shocks or other unforeseen events, the outlook for the next few months is positive and there is a strong pipeline of deals, particularly in Australia, Japan, Korea and Singapore,” said CBRE global research and consulting executive director Kevin Stanley.
Sustained offshore buyer demand for quality Australian offices has underpinned commercial property, representing 40 per cent of transactions in the year to date and signalling the highest share in almost two decades, said Stanley.
“Investors from overseas continue to seek exposure to the quality end of the office sector and Asian investors in particular are stepping up their presence,” said CBRE international investments senior managing director Rick Butler.
“Deals for a number of major office properties in Sydney and Melbourne have recently closed or are going through due diligence and the bulk of these involve a foreign buyer,” he said.
“Offshore groups are stealing the march on most domestic super funds and wholesale funds, which with a few exceptions have been inactive in recent months and are unlikely to enter the market until mid 2012.”
Australia has become “a safe haven” for investors away from the instability affecting the US and Europe, said Butler.
The low interest rates and aggressive lender competition for the real estate dollar have quelled any concern about debt levels, he said.
