Q3 2012 investment volumes have declined by more than 50 percent quarter-on-quarter, according to the DTZ Investment Market Update Q3 2012. Q2 2012 volumes were recorded at $5.57 billion, in Q3 this figure was $2.79 billion.
Office assets accounted for 49 percent of investment activity, according to the report. Although at $1.38 billion for Q3, office assets were 30 percent below their three-year average of $2.0 billion.
The industrial sector accounted for the single largest deal over Q3; the DEXUS and NPS 13-asset portfolio joint venture accounted for $360 million.
Demand in Queensland was the highest nationally. The state recorded $731 million in transactions over the quarter. For Q3 Brisbane was also the most popular capital city, accounting for $552 million in investment activity.
DTZ’s investment outlook for Q4 2012 is “uncertain” - it says that a lack of institutional grade investment stock on the market and recent global economic trends are likely to subdue investment.
“However, with yield spreads remaining at a broadly historical high, Australia remains attractive to foreign investors and yield compression is commonly thought likely,” DTZ’s report says.