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KUALA LUMPUR: The Australian real estate investment market is expected to surpass the AUS$16 billion level in transactions this year compared to 2010, according to DTZ Research in its Investment Market Update Australia 1Q2011 report on Friday, April 1.
“Despite the volatility in transaction activity, excluding the larger individual and portfolio deals, we expect to see further mergers and acquisition during the year as the larger more established listed and unlisted groups in Australia seek to capitalise on the improving commercial property market,” DTZ Research said.
Total transaction activity for property investments across Australia increased in 1Q to AUS$5.2 billion up from AUS$4.4 billion in the final quarter of 2010, a 17% increase.
“As in three of the previous four quarters, the value of transactions was boosted by large one-off deals,” said DTZ.
The key property type for investors was the office sector, although total activity inthis sector dropped slightly by AUS$1.7 billion from over AUS$2.1 billion in 4Q2010. Retail investment also reduced by over half, declining to AUS$500 million during the quarter, DTZ said.
Overseas investors purchasing activity increased to over AUS$500 million during the quarter, a 25% increase from the previous quarter.
Melbourne’s office and retail market remain high on investors’ wish list, said DTZ. Meanwhile, the Perth office market saw revival with almost AUS$400 million transacted in 1Q.
