DLA Piper has published an interactive report — titled ‘Feeding the tiger: Asian investment in Australian real estate’ — which looks at the flow of Asian real-estate capital into Australia and examines the views of five experts within the market.
The report found that the Australian real-estate market remains one of the top destinations for global investors, particularly from Asia, who seek a safe haven for capital in a well-regulated and highly transparent market and also highlighted the importance of strategic partnerships, particularly with the re-emergence of A-REITS.
Les Koltai, head of real estate in Australia and partner at DLA Piper, said: ‘Global real-estate markets are now entering a period of accelerated growth, fuelled by an unprecedented shift to globalisation of real-estate capital, where investment is dominated by cross-border international investors.
‘This is especially true for investors from Korea, China, Malaysia and Singapore. As an example, in 2007, just 31 per cent of investment flow into Australia’s
industrial property market originated from Asia. By comparison, over the past 24 months that number has more than doubled to 79 per cent. It’s a similar story in the
office sector, where the numbers are 32 per cent in 2007 versus 65 per cent today.’
To develop the report, DLA Piper convened a panel of thought leaders from across the Australian real-estate industry, including Michael Andrews, senior director of international investments, CBRE; Nick Evans, executive director Australia, Henderson Global Investors; Jonathan Hannam, group executive — capital, Mirvac; Christian McKelvey, group head of property, Pepper Group; and Belinda Ngo, deputy executive director of international and capital markets division, Property Council of Australia.