Investors find a home in capitals

Source: Herald Sun

ASIAN investors are tipping more into real estate in Australia than into almost any other regional market. And the trend should continue next year.

Melbourne and Sydney are again rating among the best investment destinations, according to a PricewaterhouseCoopers study that says Australia's exposure to China, high-quality properties, continuing economic growth and high yields have made it one of the top real estate investment prospects for 2013.

To be released today, Emerging Trends in Real Estate Asia Pacific 2013 says that despite slipping in the ranking of top 10 Asia Pacific real estate prospects, Melbourne from 7th position to 10th, and Sydney from 3rd to 4th, both cities were still faring well.

It is the fourth consecutive year both cities have been included in the top 10 investment areas chosen from 22 potential markets.

"Given the negative impact of the high Australian dollar, this is a very solid result and indicates the extent to which Australia has positioned itself as part of Asia," PC real estate leader James Dunning said.

He said offshore interest was underpinning the local markets.

Australia has received about half the real estate capital invested by funds in Asia this year.

The report says that in the first half of the year, there were $US65.3 billion worth of commercial property sales in Asia.

Investors were increasingly seeking out markets that were liquid and transparent with high-quality assets and long-term price stability, Mr Dunning said.

"Australia ticks all the boxes in this regard."

Source: http://www.heraldsun.com.au/realestate/investing/investors-find-a-home-in-capitals/story-fndcursx-1226526319955