Despite most market conditions investors are foreign investors still have eyes on commercial real estate.
There has been much interest and focus by foreign investors in the activity in the residential sector. In fact, according to Vancouver Sun, a group of professors are proposing an implementation of a "special tax" that would curb housing speculation in Vancouver markets where housing prices continue to soar. The proposed targeted tax is aimed at addressing housing affordability for the residents of the area who pay their income taxes there, while urging those who own properties but don't live in them to pay a certain "special tax," that will then be "distributed as lump-sum payments to all Canadian tax filers in the collecting region"
Australian real estate markets are no stranger to speculation from oversees not just with the residential real estate sector but mainly the commercial real estate sector as well. According to Your Investment Property Mag, CBRE has reported a sale of commercial industrial and retail property valued at more than $5 million totaling a loft $28.4 billion over the year 2015. The figure is nearly as much as the $29.6 billion total recorded for 2014. The high level of sales was influence by a large demand from foreign investors.
According to CBRE's Australian research head Stephen McNabb said, "Rising volumes of offshore investment reflect the relative attractiveness of Australia's commercial property yields in a period when interest rates have been close to 2% points above major developed markets globally." Office spaces specifically was considered a hot destination for offshore funds, where in foreign buyers are said to be behind 54% of office deals in 2015.
Moreover the CBRE analysis also shows that 41% of the total commercial sales or $11.7 billion is accounted for by foreign investments and just like Manhattan and Metro Vancouver markets, Australia's commercial real estate market can expect to see strong interest from investors abroad.
