Uneven buying activity Down Under

Commercial real estate

THE Australian commercial real estate investment market has been a standout performer within the Asia- Pacific region in 2014, ranking second behind Japan in total volume.

After an orderly start to the year, investment volumes surged in the second quarter and were sustained for the remainder of the year to post an annual total of A$32.6 billion (S$35.1 billion), with yields falling across most asset classes.

The result for 2014 sets another post-global financial crisis peak, following from the A$22.4 billion recorded in 2013. Volumes have doubled since 2012 in which A$15.6 billion of direct investment in Australian commercial real estate was recorded.

Offices have traditionally been Australia's most liquid asset class as it offers investors the greatest quantum of investable stock, and so it proved…