The exponential growth of Asia as a source of investment capital into Australian real estate has been remarkable. Having escaped the GFC relatively unscathed, Australia has enjoyed 102 quarters of successive economic growth and investors in our market benefiting from one of the largest yield spreads over the cost of funds of any developed nation globally.
As we enter what is widely dubbed the ‘Asian Century’ the region’s perception of Australia is evolving to become more inclusive and as such we will continue to see more cross-border capital flows into our market. This report looks at the history of this investment, and discusses the expected new entrants and new pathways in the coming years.
Five key findings from this report:
- Chinese capital has been a game changer for Australian real estate, increasing 320 times from $50 million between 2001-08 to $16 billion between 2009-16.
- Asian capital has displaced the USA and Europe as the number one source of property investment into Australia every year since 2012.
- Over 60% of Australia's trade is with Asia - 6 of our top 10 trading partners are in the Asian region.
- Sydney is the fourth most popular destination for global capital in the past five years.
- Frasers, Ascendas, GIC, China Investment Corp, Greenland have been the largest Asia-based investors in Australian real estate since 2011.
For more information about the future of Asian investment in Australian property, contact our experts today.