Sydney ranks #10 - most popular commercial real estate city
Global real estate agency DTZ has released figures which show that Sydney is the tenth most popular commercial real estate investment city in the world. During the last financial year, Sydney attracted $11.2 billion worth of real estate investment, which is up by 16% on the previous financial year. In terms of the Asia Pacific region, Sydney is now ranked second in commercial property investment, only ranking behind Tokyo. Sydney is now above both Hong Kong and Singapore.
According to DTZ, the main driver behind this influx of commercial real estate investment is the low interest rates in Australia. Whilst investment in the overall Australian market dipped over the last financial year, this was not the case in Sydney, where activity rose steadily, helped along by the acquisition of Gold Fields House near Circular Quay for $450 million, together with the China Investment Corporation purchase of four iconic Sydney office towers.
Sydney has a similar appeal to that of New York in the United States, in that Sydney is seen as the gateway to Australia. The other reason as to why overseas investors are buying property in Sydney is because of the high yields in rental. DTZ has said that if you are looking to buy a commercial property in New York, the average yield is 3.5% or below, while in Sydney the average yield is 6%.
According to the data supplied by DTZ, the influx of overseas investors into the commercial real estate sector in Sydney is on the up and only looks set to increase in the foreseeable future.