FOREIGN INVESTMENT INTO AUSTRALIAN COMMERCIAL PROPERTY
Vanessa Rader | Head of Research , Ray White Group
There ’ s been much said about the current uncertainty surrounding the global banking situation and the potential impacts for the broader economy . Latest data from Treasury surrounding foreign investment into Australia has been released for the quarter , ending December 2022 , which shows a continued commitment to property investment from offshore groups . With the increased cost of finance and recent developments regarding the accessibility of funds , will we see these strong levels of foreign buyer demand continue ?
During the December 2022 quarter , commercial property was the largest industry sector requiring Foreign Investment Review Board ( FIRB ) approval . The values of approvals recorded were $ 19.3 billion ahead of “ finance and insurance ” and “ manufacturing , electricity and gas ”, both recording $ 12.9 billion , while residential property sat at just $ 1.4 billion . Office and industrial were the most active asset types transacted over this period , while investment into retail and development sites had increased on the prior quarter .
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