Interest rises in Australian commercial sector

Interest rises in Australian commercial sector

New research by JLL has revealed that the number of foreign investment groups that are currently active in the Australian commercial property market has increased by 80 in the past 11 years.

In 2006 there we only seven foreign investment groups active in commercial property in Australia. Today there are 87 groups, and groups from the USA, China, and Singapore are the most dominant.

UBS forecasts end of Australian bubble

“The proportion of office acquisitions by offshore capital sources has steadily increased post the financial crisis in 2007 and reached an all-time high of 52 per cent in 2015,” commented Simon Storry, JLL’s head of international investments – Australia.

“Offshore capital sources were also a large seller of office assets in 2016. So strong activity on both sides of the ledger highlights divergent views on the outlook for capital values and the potential of investors to generate higher returns in certain markets across Australia.”

However, while the most interest currently comes from China, it has been predicted that a new surge of investment from other Asian countries, such as Japan and Korea, is on the cards.

Australia demands property sales

“We will soon see a greater spread from Asia and south-east Asia,” commented Peter Mitchell, former chief executive of Asia Pacific Real Estate Association and current non executive director of Emerge Capital. “Since the GFC investors have become more risk averse so they are favouring more mature markets and, for Asia-based investors, that means Australia.”

According to JLL, the size of the investment pool in the Australian office sector alone is AUS $223.5 billion.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT