Chinese investors have been very active in the Australian residential
space this year, and this trend is now starting to spill into the
commercial property market according to new research from Colliers
International.
In 2013 the amount of Chinese direct investment in
commercial property stood at AUD$871.4million (to the end of November),
which represents a rapid increase from 2007 when just AUD$17million was
recorded. This is a shift from their previous focus mostly on the Australian residential property market.
This
move was boosted significantly by the sale of Centennial Plaza
(pictured) in Sydney in November which was one of several transactions
completed that month involving a Chinese purchaser.
Significant purchases by Chinese investors in 2013 have included:
Centennial
Plaza (260, 280 and 300 Elizabeth Street, Sydney): Sold on behalf of
Investa Property Group to Invesco (on behalf of Chinese Investment
Corporation), for AUD$305million. The was the largest direct property
transaction in the Sydney central business district this year, which was
brokered by Colliers International.
229-234 Franklin
Street, Melbourne: Sold for AUD$17million to a private Chinese investor
by Colliers International on behalf of Jimmy Goh.
36-40 La Trobe Street, Melbourne (GMK House): Sold for AUD$8.5million to a private Chinese investor by Colliers International.
Privately-owned
companies and private investor groups have become particularly
dominant, according to Colliers International’s research.
"We
can expect to hear more of these groups over the next decade," said
Colliers International’s head of Research, Nerida Conisbee .
"Changes
to regulations surrounding investment into property by Chinese
investors is expected to lead to significant amounts of capital entering
Australia,” Consisbee added.
Andrew
Batt, International Group Editor of PropertyGuru Group, wrote this
story. To contact him about this or other stories email andrew@propertyguru.com.sg
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