Australia recorded a subdued Q1 2012, a traditionally quiet period, according to CBRE’s Asia Pacific Capital Markets MarketView report.
Asia Pacific investment volume recorded US$11.6 billion in Q1, a 42 percent quarter-on-quarter decrease. But CBRE says Australia, China, Japan and Malaysia markets continued to see a strong level of interest for quality assets.
In Australia foreign property funds accounted for the bulk of activity, accounting for 94 percent of non-Asia Pacific based investment in the region.
Retail assets accounted for US$943 million worth of deals in Q1, representing 40 percent of total Australian sales.
A-Grade offices in Sydney, Melbourne and Brisbane continued to attract a steady flow of enquiries, the report says.
The industrial demand and supply imbalance for quality stock in Brisbane and Sydney drove capital values upward, it says.
The report says in a continuing trend, domestic superannuation funds were more active over the quarter, compared to a relatively quiet last four years.
CBRE says market activity is expected to pick up in the coming months, with several sizeable transactions moving closer to completion.
Source: CBRE
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