Sydney ranked number 10 among the world's most traded commercial property markets. The city is now expecting surge of investors into their malls, offices and logistic services.
According to global real estate services group DTZ, Sydney has earned $8.2 million USD for the past year. It was also the second most traded city in Asia Pacific just right after Tokyo. Sydney has been attracting investors more than Singapore and Hong Kong.
In a report by afr.com [Australian Financial Review], DTZ's CEO for Australia and New Zealand, James Patterson, said that "The results [Sydney as part of the Top 10 most traded commercial property markets] confirm the importance of Sydney as a major investment destination, not only in Asia Pacific but also globally."
Low interest rates also attracted global investors which caused a 15 percent increase over the first half of the year reaching $318 million USD led by Europe and North America. Despite of drop in transactions in Asia Pacific, Sydney's increase due to in part of deals like Dalian Wanda's purchase of Gold Fields House near Circular Quay last January for $415 million.
Andrew Cannane, Perpetual Trustee's head of corporate client services, said that the potential for growth is vast when you consider the offshore institutions and sovereign funds that have not yet invested into Sydney. He also added, "By my estimates, only nine of the top 30 global sovereign wealth and pension funds by equity invested in real estate have invested in Australia so far. And only nine of the top 50 real estate investment managers (by equity raised since 2009) have invested into Australian real estate."
Mr. Cannane said "For those investors making their first acquisition in Australia, it has the appeal of New York in the US or London in the UK. It's the financial capital and the biggest city." The city was believed to be seen as the gateway into the country.
According to domain.com.au, homeowners are also rushing to sell their properties due to booming of the real estate market in the country, both for commercial and housing. Sellers around Sydney are getting high dollar at auctions while the number of homeowners putting their homes into auction doubled this August compared to last year's figures. It was also reported that almost 3000 properties will be put into auction this coming winter.
