Commercial property in Australia has become a good reason for anyone to relocate to the country, due to the sector’s positive performance.
That’s because the market has achieved its strongest growth in the third quarter of 2016 for more than two years. Investors poured $9 billion in commercial property investments between July and September with 30 percent of that amount coming from deals worth more than $200 million, the Sentinel Property Group cites.
If you’re looking to invest in the sector, it’s good to know that average capital flowing into the market amounts to $47 million — a sign that investors are ready to spend money.
The Chinese are among the most prolific investors in Australia’s real estate. Investors from the Asian country have listed Australia as one of their target destinations for property. For the first eight months of 2016, Chinese investors splashed $23.5 billion into various markets aside from Australia, including the US, UK, Germany, and France.
That amount is set to exceed their total investments worth $25.7 billion for the entire period of 2015. It’s expected that outbound Chinese investments would increase by 37 percent in 2016 year over year, reaching $35 billion.
Sydney and Melbourne attracted most of large-scale property transactions in Australia. Total property values in Sydney also rose 33 percent over the last 12 months, which makes owning real estate a lucrative investment.
Despite a weaker office sector, industrial and retail properties emerged as the well-performing sectors in the third quarter. Logistics properties cashed in $1.8 billion from several deals, while retail transactions reached more than 70 deals worth $2.2 billion in the three-month period.
Based on these figures, living in Australia appears to be an attractive option. Be sure to consult a local expert to help you on deciding where to put your money with the lowest possible investment risk.