The pandemic has caused investors across the globe to be a lot more diligent with their capital, but Australia has still seen over $15 billion invested in its property market, with 40% of that coming from overseas buyers.
A new report released by CBRE has revealed who are the biggest overseas players in the Australian market so far this year, with office space making up 66% of the total offshore investment.
Offices continue to be the top pick for overseas buyers, followed by industrial (22%) and retail (8%), while Sydney and Melbourne remain the preferred cities for capital deployment, having accounted for 44% and 35% of offshore spending respectively.CBRE Head of Capital Markets Research – Ben Martin-Henry
So, which countries are the largest offshore investors?
In third position, and perhaps somewhat surprisingly so, is China. With $800 million worth of capital outlaid by Chinese investors, the country still makes up a sizeable chunk of overseas investment, but escalating tensions regarding recent trade conflicts have soured relations between the two countries.
With $1 billion invested in Australian assets, Germany come in at second place largely due to a recent hefty transaction. In September, German private investment firm Deka acquired a 22-level office tower 452 Finders Street for over $450 million, making up almost half of the total investment from the European nation in the first three quarters of 2020.
Sitting at the top of the pile however, with a whopping $3 billion invested in Australian property, was Singapore, after the Government of Singapore Investment Corporation (GIC) increased their share in Dexus’ Australian Logistics Trust to 49% in January. CBRE Head of Capital Markets, Chris O’Brien, said that similar deals will continue in 2021.
“What we have seen throughout 2020 is a significant uptick in the number of internal transfers, such as GIC investing more capital into DALT and, more recently, Logos shifting $420 million worth of assets to the Singapore listed ARA Logos Logistics Trust,” he said.