International Investor Activity Signals Confidence in Australian Market

There has been a significant influx of international investor activity across Victoria and more broadly since the beginning of the year.

In the first quarter of 2024, overseas investment rose by 17 per cent throughout Australia according to MSCI data.

This is a particularly important statistic, as it signalled the reversal of five consecutive quarterly declines.

This increased interest has helped to buoy transaction volumes, while putting upward pressure on local institutional and private investors by injecting extra competition into the marketplace.

Generally speaking, when you add competition into the commercial real estate sector, this can directly translate into better sales results for vendors.

More broadly, indicative figures for Q2 reported in The Australian suggest that the national commercial real estate sector is poised for a rebound, fuelled primarily by foreign investment.

The pricing correction of some commercial property classes since the pandemic is now resulting in a surge of transaction volumes, with a flurry of mid-year deals putting the local sector on a promising course for the second half of 2024.

Factors like interest rate rises and the prospect of further hikes lead to a more risk averse approach from domestic players, which is why we might see increased activity from the international sector before the year’s end.

We believe the property cycle has bottomed out, and with new taxes on non-primary houses driving mass liquidation of residential investments, a wave of new prospective commercial investors could be gearing up to enter the market in the next 12-months.

This makes now one of the most opportune times since the turn of the century to enter or further establish yourself in the market.

If you are exploring commercial property investment, or an asset owner looking to sell a commercial property, our experienced sales team has strong connections with many local and international investors based in Asia and other foreign markets.

We can also help international buyers identify and acquire commercial properties suited to different business needs.

To learn more or to make an enquiry, please reach out to us at info@jonesre.com.au.