Singapore firms grab bulk of foreign real estate investments in Australia

Local companies have injected $6.68 billion since 2005.

The Land Down Under is a strong magnet for real estate investments, and Singaporean firms appear especially susceptible to Australia’s charms.  Singapore is now the top investor in Australia’s booming real estate market, with Singaporean firms injecting over $6.68 billion into the sector since 2005.

According to a report by CBRE, Australia has seen a flood of investments from SGX-listed property developers and even the country's sovereign wealth fund GIC.

Singapore made up 28% of total foreign investment in Australian real estate from 2005, while Germany came in second with 14%.

Around 68% of these funds directed at office property and just over 29% invested in retail assets. Singapore, the US and Germany have been the largest source of net foreign investment.

“We’re also seeing continued interest in this market from institutional investors and sovereign wealth funds with Asian developers also targeting opportunities to convert secondary office stock into residential apartments. For example, Singapore’s Far East Organisation has acquired four office assets in Sydney while China’s Greenland is building Sydney’s tallest apartment tower at 115 Bathurst Street in the CBD. Melbourne has been another target, with Singapore’s Fragrance Group acquiring 555 Collins Street, another Singapore group Aspial securing the Australia 108 site and Malaysia’s PJ Development acquiring Kavanagh Street, Southbank,” stated the report.