Real estate market will remain attractive to foreign investors – study

The country is expected to benefit from a "portfolio re-weighting towards Asia-Pacific"

Real estate market will remain attractive to foreign investors – study

Australia’s real estate market will remain attractive to foreign investors this year, due in part to a global trend of “higher allocations to real assets and a portfolio re-weighting towards Asia-Pacific.”

According to research from global real estate services firm Jones Lang Lasalle (JLL), foreign investors expect the Asia-Pacific region to recover from the financial impact of the COVID-19 pandemic faster than Western countries – a belief that the firm says will encourage investment in the country’s real estate market.

Read more: Australia's housing market proves resilient in 2020

In fact, in a survey of top investment leaders from 38 global and regional investors on how COVID-19 is impacting their strategic investment decision-making, JLL found that 50% of investors were planning to increase their exposure to the country’s real estate market in 2021.

Meanwhile, only 7% are looking to down-weight their real estate holdings in Australia.

“The real estate investment market will provide a diverse range of opportunities across the risk spectrum in 2021,” the report said.  “Australia… [is on an] economic recovery path, with GDP forecast to rebound in 2021 and 2022. Policy measures will be supportive, with the Commonwealth of Australia outlining plans to support employment growth and commit funding to a range of infrastructure initiatives, while monetary policy will remain at very accommodative levels. Greater confidence in the economic growth trajectory will lead to an improvement in office and retail leasing enquiry and activity.”