Beginning to End Logistics is pleased to report that there continues to be strong foreign demand for Australian commercial property, despite a global slowdown. In particular, Chinese property investment in Australia continues to develop despite sharemarket volatility and a weakening Yuan.
Chinese property investors have recently turned their focus from residential property to commercial property, in particular hotel investments and development. This is likely due to the increasing interest amongst Chinese seeking quality hotel and leisure based investment in Australia. Furthermore, the proposed federal government changes to foreign investment in private real estate are considered to be unlikely to deter large-scale development and investment in Australian real estate by Chinese investors.
Private Chinese money has now overtaken state-owned-enterprise investment for the first time, and it is expected that the outflow of Chinese investment into Australia will remain at steady and strong levels this year, although it will be hard to beat 2015 levels. In 2015, over $3.8 billion was pumped into the Australian commercial property market thanks to Chinese investors. This positioned Sydney and Melbourne as second only to Manhattan as the world’s top destinations for Chinese property investment. The value of Chinese developers’ total investment in Australian real estate in 2015 was estimated at around $5 billion.
Beginning to End Logistics considers that the increased foreign interest in the Australian commercial and residential property markets will be of great benefit to the national economy, particularly given the end of the Western Australian resources boom and the recent slowdown in global financial markets. In addition, the announcement of the construction and development of several new hotels in Perth, including the Crown Towers, City Lights hotel, Westin Perth and the Ritz-Carlton at the new Elizabeth Quay, will further inject much needed capital into Western Australia.
Beginning to End Logistics are experts in delivering logistics solutions to a wide range of clientele. Call us on 1800 70 67 60 to discuss how we can assist you in handling your logistics needs.