Issue 55 | The Property Development Review

Investment

AUSTRALIA TO BE TOP DESTINATION IN APAC FOR CROSS- BORDER INVESTMENT VOLUMES

Knight Frank’s Horizon Report III – Look Beyond the Norm found Australia was expected to attract 36% of total cross-border flows in 2024. Japan and Singapore maintain their second and third positions, with approximately 23% and 11% shares of cross-border capital targeting these countries, respectively. Total cross-border investment into Australian commercial property is forecast to be US$10.2 billion (approximately $AU15.5 billion) over 2024, up from US$5.9 billion (roughly $AU9.01 billion in 2023). The Horizon Report III found there would be a significant rebound in cross-border real estate investments in Asia Pacific overall in the second half of 2024, with volumes expected to rise by more than 33% compared to the same period in 2023. The anticipated increase is largely driven by potential Federal Reserve rate cuts, which bode well for commercial real estate investments. This rise will primarily be driven by the office sector, which is expected to attract 30% of the cross-border investment volumes. Australia is predicted to be the number one destination for cross-border capital in the Asia Pacific commercial property market in 2024, according to the latest research from Knight Frank.

12 – August / September 2024

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