According to new data from Cushman & Wakefield, investments in commercial real estate reached $ 42.6 billion in transactions during the fiscal year 2019
.
Research has revealed a 22% increase in the value of transactions compared to $ 34.9 billion in 2018. The figures also show a 22.6% increase in the flow of transactions in real estate of offices, accounting for more than half of all transactions in commercial real estate.
Low vacancy rates in the Sydney and Melbourne markets boosted office transactions, leading to higher rents and higher expectations for investors. At the same time, even though they remained weak, office yields continued to attract investors relative to bond yields, which fell sharply over the past year.
Dexus' acquisition of 80 Collins Street in Melbourne for $ 1,476 billion and Scentre's sale of its towers over Westfield Sydney to Blackstone for $ 1.5 billion closed year on a positive note.
"Investment in Australian commercial real estate remains buoyant as investor demand for office assets continues across the country with rents rising and vacancies tightened. We have witnessed the recent conclusion of historic office agreements in Sydney and Melbourne, and the pipeline remains strong, "said John Sears, head of research for Australia and New Zealand at Cushman. & Wakefield.
The study also indicates that foreign investment rose in 2019, reaching a total of $ 19.3 billion, or 45% of all transaction volumes. Multinational investors have been among the main sources of foreign investment in the country, with Canada and Singapore being the main sources of foreign capital.
Top suburbs:
Marrickville
,
Millner
,
alexandria
,
Westmead
,
Goulburn
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