Overseas Investment to Continue
Experts expect Australia’s strong economy to drive continued investment from overseas in the property market. Despite an uncertain international outlook, Colliers International Managing Director of Investment Services, John Marasco, said offshore investors had committed about $3.7 billion in Australian property markets in a six-month period recently.
He said local investors were also becoming more active but warned that investors would generally remain cautious, with forecasts suggesting the weight of capital chasing quality assets will lead to a further tightening of premium and A-grade yields by as much as 25 basis points in the near future.
Mr Marasco said that growth from the mining and resources sector would continue to stimulate the broader economy but said the property and mortgage sector would continue to be defined by the two-speed Australian economy in the year ahead. “This will continue to present challenges,” he said. He said retail would continue to do it tough.