The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
2
print
Print
OfficeDinah Lewis BoucherWed 11 Mar 20

Adelaide Office Market Top Choice for Foreign Buyers

491461e0-c5f1-4392-95d9-52910a7250f1

No longer the “city of churches”, Adelaide is instead becoming the city of choice for foreign buyers, according to the latest research.

More than half the total sales in the South Australian capital last year—a record $1.04 billion worth of assets—were to foreign buyers, according to CBRE’s Market Outlook report.

Foreign buyer spending passed $1 billion for the first time, more than doubling the erstwhile record of $468 million from 2017 and the 10-year average of $450 million.

This also represented 51 per cent of the total spending in Adelaide, outweighing Australian buyers’ spend for the first time and representing a significant spike from 12.2 per cent in 2018.

Among Australia’s major markets, only Perth recorded a higher rate of spending by offshore investors (70 per cent).

The South Australian capital has become a favourite among international and interstate investors, offering affordability, attractive relative returns and a stable economic landscape.

CBRE’s capital markets director Ian Thomas said the city had found favour with both international and interstate investors thanks to its affordability, attractive relative returns and stable economic landscape.

▲ Foreign Buyer Demand - Australia. Source: CBRE Research


“Offshore and eastern seaboard investors have become more and more active in the Adelaide market,” Thomas said.

The popularity of the city’s office market shows no signs of abating either, with the number of international office buyers doubling in the past five years, now accounting for 8 per cent of sales in the past 13 years, the report shows.

With office sales in the city exceeding $800 million in 2019, Thomas said the Adelaide office sector had been attracting capital from the United States, Europe and Singapore.

And despite the shadow of coronavirus clouding the global economic outlook, Adelaide is expected to maintain the nation’s highest prime office yields through to 2022, and the strongest five-year income and capital return forecasts.

“Against the headwinds of uncertainty around global economic policy, non-core locations such as Adelaide are providing greater security,” Thomas said.

The report also indicated a boost for the broader Adelaide economy thanks to a combined federal and state infrastructure spend of $12.9 billion during the next five years.

CBRE’s senior research analyst Aiden Bresolin said the city maintained a focus on innovative industries such as space travel, including plans for Lot Fourteen—the former Royal Adelaide Hospital site—as the centrepiece for the new Australian Space Agency headquarters.

“Funding for emerging and growth industries is set to create more than 4,000 jobs in Adelaide over the next five years,” Bresolin said.

With a total of 91,500sq m worth of new industrial supply expected to hit the market this year, the report predicts underlying occupier demand will continue due to restricted supply in the city fringe.

IndustrialAustraliaReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
View All >
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
Residential

National Home Prices End Year on Record High

Lindsay Saunders
The median price for an Aussie home has topped $820,000 as values rise for the fifth month in a row...
LATEST
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Linic Property Group Saunton Jindalee
Residential

Linic Group Moves 43-Unit Jindalee Scheme Ahead

Leon Della Bosca
3 Min
Residential

National Home Prices End Year on Record High

Lindsay Saunders
3 Min
Lincoln Place Eagle Point Bowls Club and Clubhouse
Land Lease Communities

Lincoln Place Plots 209-Home Scheme on Gippsland Purchase

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/cbre-office-market-outlook-report-adelaide-international-investment