Record low interest rates and the rising occupancy markets of Sydney and Melbourne have ensured that the first half of 2016 has seen continued demand for commercial real estate assets in Australia, a continuation of the record highs seen in 2015, with office transaction volumes just 5 percent lower than H1 2015 at AU$6.3 billion.
While volumes remain high, market dynamics are changing as international investors respond to ongoing global volatility while domestic investors revise their strategies and compete, once again, for major assets in Sydney’s CBD.
So, what’s driving this return of the domestic investor? Why does demand remain so high in the national suburban market, and what does it mean for foreign investors looking to enter into, or expand in, the market?
Watch the video to hear from Paul Noonan, JLL’s Head of Investments, NSW and Rowan Russell, International Investments, to find out more about the outlook for the country’s office market as we enter the second half of the year.