Foreign investors hold more than two thirds of Australian CBD commercial real estate, a new survey has revealed... Abolishing commissions will erode choice, warns industry veteran...
Foreign investors make up lion's share of CBD property
Foreign investors make up more than two thirds of Australian CBD commercial real estate, a new survey has revealed.
According to research from commercial and industrial real estate network, Savills Australia, investors splashed out nearly $18 billion on Australian office property – both CBD and metropolitan – in the 12 months to June. Foreign investors in particular were behind a 48% share overall, and a massive 68% share in CBDs.
The $17.9 billion total – comprising $9.8 billion worth of CBD office transactions and $8.1 billion worth of Non-CBD – was up almost 35% on the five year average.
Sydney had the most transactions by value at $4.6 billion, or 47% of CBD office sales nationally, while Melbourne had the greatest number of transactions, with 28 commercial transactions.
According to Savills national head of research, Tony Crabb, this was the seventh consecutive year that Australian office sales had seen year on year increases, with the exception of 2012.
Abolishing commissions will erode choice, warns industry veteran
Nick Young, managing director of trail book purchaser, Trail Homes, said replacing a commission model with a fee-for-service model – which was seen in the financial planning industry – will harm consumer outcomes by limiting choice.
“Currently, whether a consumer goes to a bank or a broker, the costs and fees associated with the loan are the same. This places the differing distribution channels within the mortgage industry on an equal footing, and so encourages healthy market competition and encourages the broker to focus on the consumer’s needs,” Young said.
“With the deterrent of a fee structure, consumers will understandably bypass the broker channel and be driven to engage directly with banks and thereby may miss a complete understanding of what options were available.”
(Your Investment Property)
Foreign investors make up more than two thirds of Australian CBD commercial real estate, a new survey has revealed.
According to research from commercial and industrial real estate network, Savills Australia, investors splashed out nearly $18 billion on Australian office property – both CBD and metropolitan – in the 12 months to June. Foreign investors in particular were behind a 48% share overall, and a massive 68% share in CBDs.
The $17.9 billion total – comprising $9.8 billion worth of CBD office transactions and $8.1 billion worth of Non-CBD – was up almost 35% on the five year average.
Sydney had the most transactions by value at $4.6 billion, or 47% of CBD office sales nationally, while Melbourne had the greatest number of transactions, with 28 commercial transactions.
According to Savills national head of research, Tony Crabb, this was the seventh consecutive year that Australian office sales had seen year on year increases, with the exception of 2012.
Abolishing commissions will erode choice, warns industry veteran
Nick Young, managing director of trail book purchaser, Trail Homes, said replacing a commission model with a fee-for-service model – which was seen in the financial planning industry – will harm consumer outcomes by limiting choice.
“Currently, whether a consumer goes to a bank or a broker, the costs and fees associated with the loan are the same. This places the differing distribution channels within the mortgage industry on an equal footing, and so encourages healthy market competition and encourages the broker to focus on the consumer’s needs,” Young said.
“With the deterrent of a fee structure, consumers will understandably bypass the broker channel and be driven to engage directly with banks and thereby may miss a complete understanding of what options were available.”
(Your Investment Property)
