Australia is still seen as a growth region by international investors, in spite of a lagging property market, CBRE has claimed.
At a Market Outlook breakfast in Sydney, CBRE head of research for Asia Pacific, Nick Axford, commented that investors are still attracted to Australia's property market. Axford said international investors are particularly active in the commercial market.
"Globally, we are still seen very much as a growth region where investment capital will continue to flow, and we've continued to see this in the current quarter, with approximately 50% of all purchases having been to foreign investors," Axford said.
Prime property is driving demand both domestically and globally, Axford claimed. He said prime properties were beginning to see recovery, while other property classes still languished.
"Investors are targeting only the very best quality, prime grade property with a focus on the quality of covenants and income streams and the larger, more liquid markets. As soon as you move down the quality spectrum, investor interest tends to drop quite significantly," Axford commented.
