RCA Insights

Domestic Buyers, Logistics Megadeal Boost Australia’s Q2

By on July 29th, 2021

Australian commercial real estate sales rose in the second quarter, fueled by increased deal appetite among domestic investors and a multibillion-dollar logistics deal, the latest Australia Capital Trends report shows. Sales of income-producing properties priced A$1 million and greater totaled A$13.4 billion (US$9.9 billion) in Q2 2021, a 15% improvement on deal levels of a year ago.

The biggest boost for the quarter was Blackstone’s sale of the 45-property Milestone Industrial Portfolio. The transaction was the largest portfolio deal on record in Australia. Enthusiasm for the industrial sector was widespread in the quarter, with more than 550 industrial assets changing hands.

After a lackluster first quarter, investors headquartered in Australia spent just under A$9.9 billion in the second quarter, a 60% increase from the year prior. For the year to date, domestic investors have acquired assets evenly across the office, industrial and retail sectors.

Retail transaction activity blossomed further in the second quarter of 2021, with total sales for the year so far of A$5.0 billion.

==

© Real Capital Analytics

Clients of Real Capital Analytics <<click here>> to download the latest Australia Capital Trends report from the RCA website. To learn more about how RCA’s reports, data and tools can inform your investment decisions, contact us.

Benjamin Martin-Henry

Head of Analytics, Pacific
bmartin-henry@rcanalytics.com

Benjamin Martin-Henry is the Head of Analytics in the Pacific region and an experienced market commentator, working in commercial real estate research for over a decade. Based in Sydney, his particular focus in recent years has been in the capital markets space and the nascent build-to-rent sector.