Australian cities are leading the way when it comes to attracting real estate investment in Asia Pacific, according to results of JLL’s Investment Intensity Index. Two of the top three cities are from down under, with half of the top ten list comprising cities from Australia.
The report, which compares the volume of direct real estate investment over a three-year period relative to the economic size of a city, noted that four of the top five cities in the list are in Australasia, with Tokyo at number five being the first non-ANZ city to make the list. Sydney took top spot while Auckland in New Zealand was second. Melbourne and Brisbane finished in third and fourth places respectively.
“Australia and New Zealand are well represented in our Investment Intensity Index, as they are the most transparent real estate markets in Asia Pacific, due to attributes such as good market data availability, fair transaction processes, high standards of regulatory, accounting and corporate governance,” said Dr. Megan Walters, Research Head at Asia Pacific Capital Markets.
Myles Huang, Research Director, Asia Pacific Capital Markets, added: “In addition, prime office yields in Adelaide, Perth, Auckland and Brisbane ranged between seven and eight percent, the highest among the top ten, making these highly attractive to investors.”
The report stated that cross border investment has played a vital role in seeing cities in Australia and New Zealand move to the top of the list. “The share of cross-border investment is above the regional average in most cities in Australia, New Zealand, together with Tokyo, as they have few government restrictions relating to foreigners buying assets,” added Dr. Walters.
The highest ASEAN city on the list was Singapore, which finished in eighth place. Other cities in the top ten included Hong Kong which was sixth and Taipei which landed in seventh spot.
This article was first published on DDproperty.com, Thailand’s leading property site.
