Cushman & Wakefield has today released its Q2 2018 Investment and Retail Marketbeat research, detailing the trends in investment in the Australian commercial real estate market.
The research shows that Investment activity remained strong in Q2 with a further $8.6bn committed, totalling $15bn for the first half of the year. The office sector continued to dominate, providing much of the liquidity in Q2 with close to $5bn invested, despite the retail sector rebounding strongly to reach $2.4bn invested in major assets.
- $15bn invested over the first half of the year – a 2% increase on the $14.7bn invested in H1 2017, suggesting another robust full-year total in 2018.
- Office assets comprise 58% of the total investment volume.
- Foreign investment accounted for 23% of total investment over Q2
- However, foreign investment volume over the first six months of the year has slipped 30% year-on-year to $4.4bn.
- Pension funds were the largest net purchasers in the quarter and were behind the quarter’s two largest transactions.
- National retail investment volume rebounded from a soft Q1 to record $2.4bn worth of transactions in Q2 2018.
- Larger number of deals, and a larger average deal size than Q1. Year-on-year, Q2 2018 volume was also 55% stronger than Q2 2017 ($1.5bn).
- Victorian assets topped the list with $1.6bn (64%) of investment and featured nine of the top 15 transactions including: Werribee Plaza ($611.5m), Pacific Epping ($372.5m) and Grand Plaza Shopping Centre ($215m).
- Queensland and New South Wales each attracted volumes of $438m and $422m respectively.
- Major Regional centres dominated volume ($984m)