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Singapore is now Australia’s top foreign investor in commercial properties, recording over AU$6 billion (S$6.68 billion) net investment in the sector since 2005, a Colliers International report revealed.
Notable investments that came from the city-state includes Far East Organisation’s acquisition of four office assets in Sydney, as well as Fragrance Group’s acquisition of 555 Collins Street in Melbourne, and Aspial’s purchase of Australia 108.
According to the report, Austrialia’s foreign investors have increased their balance sheet exposure by AU$18.8 billion over the past seven and a half years, with 68 percent of these funds directed at office property and just over 29 percent invested in retail assets.
In total, 12 percent of Asian outbound capital in 2013 went to Australia, with a similar proportion of funds invested in the first half of this year.
CBRE Senior Director for International Investments, Rick Butler said this momentum was expected to continue as new capital emerged from Asia.
“We’re also seeing continued interest in this market from institutional investors and sovereign wealth funds with Asian developers also targeting opportunities to convert secondary office stock into residential apartments,” Butler added.
The US and Germany joins Singapore as the largest source of net foreign investment over the same period, while China, Malaysia, South Korea and Hong Kong completes the Asian cities on the list.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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