This article is from the Australian Property Journal archive
AUSTRALIA’s commercial and residential property markets are now ranked second globally, ahead of Canada and the United States, further boosting the country’s appeal to foreign investors, according to JLL.
The JLL Global Real Estate Transparency Index saw Australia climb from third place in 2014 to second position and is now the UK.
Australia continues to hold the top spot as Asia Pacific’s most transparent real estate market, while New Zealand ranks No. 2in the region.
JLL’s head of Australasian research Dr. David Rees said as capital allocations to real estate grow, investors are demanding further improvements in transparency.
“Transparency is very high in Australia for a numbers of reasons. In comparison with many markets in the region, Australia also has a strong legal framework to define and protect property rights and an open and established bidding process.
“The market has a long history of transactional and time series data/information across all the major metrics, data is easily accessible to most participants. In addition, governance and the regulatory environment are high by international standards. Improvements in the coverage of alternative property sectors, such as student housing, contributed to the improvement in Australia’s ranking in this year’s survey,”
“These factors have clearly contributed to the record foreign investment was recorded into Australian commercial property in 2015, with offshore investors accounting for 42% of total transaction volumes. This is around double the ten year annual average. Additionally, Australia offers non-Asian investors a convenient gateway into Asia Pacific and the fast growing SE Asian economies,” Rees said.
Globally, the ‘Anglosphere’ continues to dominate the ‘Highly Transparent’ group that hold the top positions globally – the United Kingdom (1st), Australia (2nd), Canada (3rd), the United States (4th) and France (5th).
Australian Property Journal
