Global Investor Sentiment Survey, Q3 2010
After a fairly prolonged period of inactivity, property markets around the world are starting to ramp up with sales volume increasing sharply. Global real estate capital flows in the first half of 2010 surged 75% relative to the same period a year ago, with 5,600 transactions in total and a dollar volume exceeding US$230 billion. This pales in comparison with the first half of 2007, when global transactions were just under US$420 billion, but the trend is still encouraging nonetheless. In the first half of 2010, Europe, Middle East and Africa (EMEA) transactions were up 41% relative to the same period a year ago, Asia Pacific sales volume was nearly double year ago levels and for the Americas, investment volume was up 72%.
After launching our Q1 2010 Global Investor Sentiment Survey earlier this year we felt it was important to conduct a follow-up survey to gauge how investors were reacting to financial and economic events and their subsequent appetite for property – both in their home market and cross-border. As such Colliers International again undertook the task of surveying real estate investors from around the world. The result is a summary of the current sentiment and outlook for the global real estate marketplace, providing valuable insight into how property markets are expected to perform over the coming months and years. As you read this report it will become evident that investors have considerably more confidence than just six months ago, but many still feel real estate markets are “unusually uncertain” and will remain that way for some time to come.
KEY FINDINGS
- Most real estate markets around the world have passed the bottom of the cycle and are now on an upswing with the average global property clock now positioned at 8 o'clcok, well up from 5:30 in Q1 2010.
- A full 90 percent of survey participants said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
In Australia and New Zealand, the survey shows:
The property clock is now positioned at 7 o'clock with expectations it will reach 8 o'clock in 12 months time.
- 70 per cent of investors indicated a desire to purchase domestic property in the next year, with the majority keen to acquire Australian office and retail assets.
- 59 per cent are looking to sell property this quarter (up from 41 per cent in Q1 2010) reflecting better pricing conditions and a more balanced market, which should result in more transaction activity next year.
- 73 per cent believe a double-dip recession is unlikely citing the health of our local economy, the strength of our major trading partner, China, and the strong demand for our resources along with high commodity prices.
VIEW ONLINE
To view a summary of the results online, simply click here to access the e-book.
CONTACT INFORMATION;
For more information about this research or the results of this survey, please contact:
Nora Farren
Director, Research
+61 2 9257 0289