Macquarie Direct Property Survey Findings

According to the survey, 30.4 per cent of advisers think the best global property growth prospects are in Europe. This is followed by 25.7 per cent in the established Asian markets of Hong Kong, Singapore and Japan, and 24.9 per cent in China.

Just 3.7 per cent of advisers believed there were strong growth prospects in the United Kingdom, while 2.6 per cent said they expected the United States to perform well.

MDP general manager Richard Stacker said Australian property funds invested approximately $7.4 billion in European real estate last year, a 350 per cent increase on 2005.

Knight Frank managing director Paul Burns said the lack of property available for sale in Australia, has resulted in more institutions looking overseas to divest the money being accumulated.

"Fund managers control an enormous amount of money, and there is only so much property in Australia to go around," said Mr Burns.

"Prices in some Australian markets are forced beyond what fundamentals suggest they are worth, overseas property may then look more attractive,” said Mr Burns. “The reality is that there are still good opportunities within Australia, you just have to pick the right markets, many institutions are broadening their investment criteria accordingly"

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco

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