AUSTRALIAN COMMERCIAL property is an attractive investment choice according to Ernst & Young real estate analyst Chris Lawton.
'The Australian commercial market is highly competitive, with a substantial proportion of investment grade retail, office and industrial property already held by Listed Property Trusts and other institutional investors.
'The relative size of Australia's Listed Property Trust sector [Australia has one of the most securitised property markets in the world], while creating substantial competition for assets, also ensures there is significant analysis of all major property classes. The regulatory framework is well established and includes a well developed titles system that provides a high level of certainty for investors,' Mr Lawton said.
Despite the opportunities, Mr Lawton cautioned, however, that foreign investors needed to address carefully the risks associated with investing in the Australian market.
'It's important to partner with someone who knows the local market. In terms of tax and regulatory requirements, engaging local advisers with experience in not only the domestic Australian property market but also in dealing with cross-border transactions is an important consideration.
'Australia's property markets are subject to a number of state- based regulatory requirements and taxes that vary across the country. For example, stamp duty and land tax are levied at differing rates by different states. A number of regulatory requirements, such as zoning laws, also vary,' Mr Lawton said.