Boom run in foreign wa property ownership

Overseas ownership of commercial property in WA, and across the nation, in 2012 is poised to build on the previous two years' record-setting sales results.

According to global property experts CBRE and Jones Lang Lasalle, foreign investors bought record amounts of commercial property in 2010 and 2011. And sales data for the first quarter of 2012 suggest the trend is continuing - and may even be accelerating.

Dr David Rees, JLL's head of research and consulting in Australasia, said the global financial crisis (GFC) has proven to be a boon for the local real estate market, stimulating a major portfolio shift between countries, sectors and investment vehicles.

"During 2011 alone, offshore investors purchased $3.7 billion of Australian commercial real estate assets which is equivalent to 29.5 per cent of transactions by value (greater than $5 million), the largest percentage on record and just below the record dollar value of $3.8 billion achieved in 2010," Dr Rees said.

"The relative volume of funds seeking exposure to the Australian market from offshore - and from domestic sources - has increased substantially over the past three years."

Source: Perth Now