Capital inflow to reach $US 1 trillion for property assets

Capital inflow to reach $US1 trillion for property sector

Source: Sydney Morning Herald

Volatile sharemarkets and low interest rates have forced cash to be redirected to bricks and mortar amid forecasts as much as $US1 trillion may flow through the property sector in the coming year.

This would be 6 per cent higher than last year, the CBR Global Investor Intentions Survey 2016 shows.

The 2016 survey, which was conducted between January and early February, captured negative sentiment from volatility in China's sharemarket.

The survey asked investors how much capital (gross acquisitions) they would deploy in real estate purchases this year.

Respondents said they expected about $US1.16 trillion of capital targeting property investment in 2016. 

CBRE executive managing director, capital markets, Pacific, Mark Granter said the survey confirmed Australian real estate remained strongly sought-after and was the top destination for Asian capital.

"Also apparent in the Australian results is that Brisbane has moved up the list of preferred destinations for capital, which may suggest that investors are looking for counter-cyclical opportunities as the market approaches the bottom of the cycle," Mr Ganter said.

Office and retail were cited as the more popular capital destinations, but in Australia, mixed-use residential was also in demand.