Big rise in Australia investment

09 February 2016 by News Desk   |   SHARE  

Australia remains the place to make money, a fact borne out by a big rise in commercial investment.

There’s been a 20 per cent increase in investment in commercial property in Australia over the past two years, with 38 per cent of the money coming from foreign investors.

Over the past 12 months investors have spent a record $29 billion buying commercial property in Australia valued at $2 million or more.

This includes office, industrial and retail properties.

Investors spent $17.2 billion on buying offices, $4.8 billion buying industrial properties and $7 billion buying retail properties.

Commercial investment by foreigners in Australia increased by 70% in 2015.

Most popular cities for commercial investment were Melbourne and Sydney while investment in Perth and Brisbane has fallen slightly.

Darrell Todd, CEO of thinkingaustralia, says: “In recent years many investors put their money into residential property.

“But since the housing market has changed, investors are increasingly looking to commercial property where the returns are greater.”

While returns on new residential property have slowed, profit on commercial property remains higher – between 10 and 13 per cent.

The rise in commercial investment has been mirrored by a rise in business credit, which increased by 11 per cent in 2015.