Sydney named sixth biggest global commercial property investment locale: Cushman & Wakefield
Sydney has ranked as the sixth biggest destination for overseas commercial property investors to place their funds, according to a new global cities report from Cushman & Wakefield.
Australia’s biggest city attracted US$3.6 billion in offshore capital in the 12 months to June 2012, an increase of 47.7% on the previous 12 months, with Sydney ranking above Shanghai, Berlin, Beijing and Singapore.
Offshore investors abandoned Melbourne, with the city recording a drop of 41.8% in cross-border capital on the previous 12-month period, ranking a distant 24th, with US$1.3 billion worth of investment from offshore sources.
The top destination for global flows of cross-border capital – by some distance – is the London metropolitan market, which attracted US$19.6 billion from offshore institutions, followed by Paris, New York and Tokyo.
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According to the latest Winning in Growth Cities report, global flows of cross-border capital reached US$150 billion in the 12 months to June, a rise of 4.3% on the same period in 2011 and outperforming the market as a whole, which fell by 7.5%.
“This represents a rise in market share of 2.2%, and consensus indicates this is only to increase further in the coming year,” says the report.
Cushman & Wakefield says cross-border investment activity is focused on “those locations that are perceived to offer some level of security as investors balance potential rewards against their heightened sensitivity to risk”.
Sydney ranked as 11th biggest global office investment market (US$4.2 billion) and 10th biggest industrial investment market (US$1 billion).
Melbourne ranked as 22nd biggest global office investment market (US$2.2 billion) and 26th biggest industrial market (US$511 million).
Sydney ranked 17th overall, managing US$6.4 billion in global investment volumes over the 12 months to June 2012, up just 0.2% on the previous 12-month period.
In contrast investment in Melbourne commercial real estate fell by 38.7% to US$3.4 billion, with the Victorian capital ranking 32nd overall.
Brisbane ranked just behind Melbourne, attracting US$3.3 billion from overseas investors, an increase of 37.2%.
Top of the list was the New York metro area, which managed US$34.7 billion, an increase of 17.5%, followed by metropolitan London (US$29.3 billion), Tokyo (US$24 billion) and Paris (US$19.4 billion).
The report also names Sydney as one of the best locations for modern retailing and e-tailing.