By Benjamin Chow on February 19th, 2021
Commercial real estate transaction activity in Australia tumbled by almost a half in 2020 to the lowest level in eight years as the pandemic threw up hurdles to dealmaking and cast a shadow on demand for retail and office properties, the inaugural Australia Capital Trends report from Real Capital Analytics shows.
Coming off a record 2019, investment into income-producing property in Australia fell 44%. There was no traditional end-of-year bounce: in the fourth quarter activity dropped 54% compared with a year prior. Among the core property types, annual activity fell the most in the office sector, down 59%, and retail sector, down 56%.
There were some bright spots in an otherwise torrid year. Investment in industrial properties inched up due to increased interest in data center and logistics facilities, mirroring a trend seen across major Asia Pacific markets. A few alternative sectors, notably student housing and medical offices, surged ahead. Additionally, some cross-border investors kept up their interest in Australia.
The debut edition of Australia Capital Trends is now available to RCA clients on the RCA website. Read this quarterly report for deal trends analysis, capital flows intelligence and expert insight into Australia’s commercial property market. If you’re interested in this report and not yet an RCA client, contact us.
Also on RCA Insights: