Oz appeal: Economic conditions continue to favour Australia
The Australian commercial property market continues to provide an attractive investment case for international investors, as evidenced by record transactions in the market. During 2018, approximately A$35 billion (US$25 billion) of sales were recorded across the commercial office, retail and industrial sectors, according to Colliers International (see “Australian transaction volume by property and buyer type, 2018”, page 24). The office sector dominated once again with A$21.9 billion (US$15.3 billion) of transactions, or 62 percent of sales. Within this, about half of all sales in the office sector were to foreign buyers — a trend that has been in place since 2015.
The demand for Australian commercial property has been supported by favourable economic conditions, in particular GDP and population growth. The Australian population was estimated to have increased by 1.6 percent as of June 2018, which currently ranks as one of the highest in the Western world and more than