Capital Markets ANZ Introduction Australian and New Zealand commercial past two quarters, compared to the real estate continues to outperform on preceding two quarters. In our view, the the global investment stage. reason for the steady decline in volumes Ongoing cap rate compression for is due not only to the completion of major Australian office towers in 2016 some large scale divestment programs, was the obvious combination of both but also to the development yield limited core supply and ever-increasing available to landlords. Investor demand, demand. Improved leasing conditions however, continues to remain strong. In in 2017 are a further ingredient for New Zealand, strong population growth compression in 2017 as well-capitalised - particularly in Auckland - increasing investors from all regions seek to house values and booming tourism are increase deployment into Australian and driving retail spending, keeping retailers New Zealand office markets. positive. There has been consistent performance Whilst Sydney has dominated Australian trends in industrial prime assets hote ls activity over the past two years, observed across Sydney, Melbourne recent major transactions in Melbourne and Brisbane markets with the most and Perth may indicate a return to significant drivers of demand being countercyclical buying, with considerable the infrastructure boom which will new accommodation supply slated to see NSW, VIC and QLD invest a open over the next two years. New combined $150 billion over the next four Zealand’s hotel market has witnessed years. The record levels of transport its most buoyant period of transaction infrastructure development will help activity for ten years, with 24 hotel alleviate supply constraints in the in excess of $5 million each being medium to long-run by strengthening transacted over 2015 to 2016. the connections to developable land. Please enjoy this edition of the Colliers Overall Australian ret ail transaction International Capital Markets Investment volumes have been in decline over the Highlights. 02 A Colliers International publication 00