New analysis from American property experts JLL paints a bleak picture for the future of the Australian property market.
According to the firm’s research, Asian investment groups from China and Singapore are dominating the Australian commercial property market, accounting for nearly 40% of all major sales.
Former chief executive of Asia Pacific Real Estate Association and current non executive director of Emerge Capital Peter Mitchell warned that this trend is likely to continue.
“I think this is happening because since the GFC investors have become more risk averse so they are favouring more mature markets and for Asia-based investors that means Australia,” Mr Mitchell said.
Mitchell is also aware of another prospect. Even with all of the Chinese money drowning the market, like that from the state-owned China Investment Corporation, Australia should expect a new “surge of investment” from other Asian countries like Japan and Korea.
It’s not enough that China wants to take control of Australia’s vital energy and shipping infrastructure, now buyers are trying to price Australians out of the property market.