According to the Colliers International’s Research and Urban Economics figures, in 2018 foreign buyers purchased office buildings worth $446.3 million in Perth,Australia while domestic buyers accounted for transactions valued at $529.6 million.
The total sales reached $975.95 million in 2018, increased by 18 per cent from $823.15 million in 2017.
The research revealed that institutional investors were the biggest buyers in with purchases valued at $855.7 million compared with private investors at $120.3 million.
Colliers International Head of Investment Services Wayne Lawrence said Perth office yields, at 5.75% to 6.25% for premium-grade buildings and 6.25% to 7.0% for A-grade assets, continued to be a strong investment lure in 2018.
“With softer conditions in their respective domestic markets, offshore buyers are looking for yields in more stable markets like Australia,” Mr Lawrence said.
“For foreign buyers with an Australian mandate, Perth yields are more compelling than Sydney and Melbourne where the office markets have peaked or are close to peaking in terms of rental growth.
”Mr Lawrence said global trade tensions and credit availability were key concerns for office market investors but with commitments for new mines in the Pilbara, strengthening conditions in other parts of the resource sector and a healthy infrastructure pipeline, demand for office space was expected to increase.
“Improvements in the leasing environment are generating a good level of optimism about conditions for investment sales in 2019,” he said.