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Locals back WA property market

Australian companies and institutions are buying back some of WA’s real estate from foreign investors but at a premium because of the current strength of the property sector.

According to Colliers Jardine research manager David Cresp, foreign investors are more likely to purchase property when the market is down and sell when the economy is experiencing growth.

In the 1998/99 financial year, foreign investors sold $170 million worth of properties valued at over $2 million, compared to $81 million of purchases.

Research by Colliers Jardine suggest that foreign investors will continue to be net sellers in the local market over the next year.

“The counter-cyclical behaviour of foreign investors indicates that WA property is experiencing a period of growth,” Colliers Jardine sales director Jeff Braddock said.

“It has been a long time since sales exceeded purchases by foreign investors, but this trend will most likely continue over the next twelve months.”

Mr Cresp said that whilst foreign investors had been net sellers they still continued to be active in the WA market.

“Currently foreign investors own approximately 60 CBD office buildings.”

Purchases in the last twelve months by foreigners included a 50 per cent share in 10 William Street (purchased by an English investment company) and a large development site at Lot 50 Terrace Road, Perth.

Mr Cresp said that during the last financial year several major properties had been sold by investors including Dianella Plaza, CentreWay Arcade, Hometown Cannington, Sorrento Quay, the Holiday Inn City Centre, Park Inn International Hotel and the Lord Forrest Hotel in Bunbury.

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