Globally commercial property markets are beginning to return to health. As the economic situation improves in countries around the world confidence is being reinstated in both office and retail units.
Numerous indices have drawn attention to rising property values and growing rental yields. According to the latest figures from CB Richard Ellis (CBRE), one country that has benefitted from this steady improvement is Australia.
Nationally, sales more than doubled to AUD2.6 billion for the third quarter of this year, the real estate agent said. The figures, based on transactions larger than AUD5 million, are 268 per cent higher than the previous quarter and 75 per cent above the same quarter last year.
The CBRE report noted that the majority of this demand was coming from overseas investors, including buyers from Malaysia and South Africa.
"This type of stock is ready to sell, with a large number of new office buildings featuring long leases and attractive depreciation benefits available for incoming investors," Kevin Stanley, executive director for global research and consulting at CBRE, said. Investors are drawn by the "bright prospects for income and capital growth in the office sector" driven by recent employment growth.