Investors from Asia Still Prefer Australian Market

Many Asian investors are apparently still keen on putting their money in the Australian market, according to a report by DTZ Investment Management.

The said report also points out that for the first half of the 2012 calendar, direct commercial real estate investments reached $27.4 billion in the Asia-Pacific region, or what is deemed as a slight increase of 0.3 percent from the first quarter. 

The increase, according to the head of the DTZ, is due to cross-border activities and diversification, as investors also acknowledge and avoid risks. 

Analysts say that foreign investments in the country have indeed reappeared as many still see Australia as the “safe haven.” 

Further acceleration of foreign investment is to be expected from this as capitals coming from overseas come in to support investment activities in the region. 

Influenced by activities in the China region, some volumes, however, fell by 22 percent in the market, as uncertainty over the Chinese economy continue to keep investors cautious.

If Australia continues to become the safe haven, the market stands to gain high yields and fundamentals. 

One of the biggest scores for Australia happened last June, when a Singaporean investor went into a joint venture with the Public Sector Pension Investment Board of Canada to privatize the Charter Hall Office REIT. 

The investment was at $1.2 billion. 

New South Wales, meanwhile, has seen their investment portfolio also improving with 23 deals in record, totaling about $1.3 billion.