Foreign buyers and investment funds have begun to return to the Australian office market, with the sector contributing 25 per cent of the total transactions for the year. Business Day reports that a total of USD 481 million has been invested in the asset class by overseas buyers over the course of the year.
While in Victoria alone, an estimated USD 2 billion worth of office property was bought by November in total, an 80 percent increase compared to the same period last year.
According to Jones Lang LaSalle's managing director for Victoria, Andrew Wood, buyers last year were mainly counter-cyclical private investors, with some large acquisitions by offshore groups.
''As the market recovery gained traction in late 2009 and 2010, we recorded increased activity from offshore groups, superannuation funds and Australian real estate investment trusts,'' he said.
Meanwhile, Mr Wood told the news provider that investors were viewing Australian equities and commercial property as a way to gain exposure to China in a low risk environment.