2015 Global Investor Sentiment

Confident capital moves up the risk curve

Australian investors the most assured in 2015.

Our 2015 Colliers International Global Investor Sentiment Survey Report has found sustained levels of strong economic growth and improving global conditions are the primary factors contributing to high levels of confidence among Asia Pacific investors. The report found confidence continued to accelerate among local investors. Last year 35% expected conditions to continue to improve, compared to 60% this year. Just 7% expected a deterioration of conditions. 

The 2015 report shows international property investors anticipate an increase in investment volumes across markets over the next 12 months, despite a mixed bag of economic performance worldwide. The survey results suggest that a significant proportion of investors expect higher risk markets to maintain existing levels of investment rather than to experience further significant inflows or outflows.

Over 600 global investors, from sovereign wealth to private equity firms across the United States, Canada, Latin America, Asia Pacific, Europe and the Middle East, provided their outlook at a global and regional level for 2015 and beyond.

Local trends:

  • Australian investors remain the most confident in the world. More than 60% expect investment conditions to continue to improve.
  • More Australian investors are moving into secondary office markets and showing greater interest in industrial. We are yet to see many Australian investors move offshore however we consider it likely in the next two years as competition for stock continues to intensify. 
  • Sydney remains the most attractive destination for Australian capital.

Global Trends:

  • Investors are building on the greater risk appetite that they adopted in 2014, looking at European and UK regional cities, and outside of the office sector, in order to chase yield.
  • Investment trends are often global, but capital remains primarily domestic; only 14% will invest more than 50% of their total real estate allocations outside their home region.
  • London continues to retain a special place in investors’ portfolios, along with other global gateway cities such as New York and Paris.
  • Debt is back as a driver in the market, supporting many investors’ aims to go higher up the risk/return spectrum.
  • Although survey respondents did not indicate taxation of foreign real estate ownership (e.g. FIRPTA in the US) as a material factor when evaluating their investment alternatives, Colliers’ experience has been that this factor appears to play an important role on the clients’ investment decisions.
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