The Australian office property market is more resilient to declines resulting from a potential European crisis, than 30 markets across the Asia Pacific region, a survey has revealed.
Research conducted by DTZ based on a double dip recession in the Euro zone found that total returns would be substantially lower in nearly all Asia Pacific office markets.
DTZ head of Australia research Dominic Brown said while the chance of European loan defaults are increasing, the study found that the ramifications for Australia would be minimal.
“Under this scenario, Australian GDP growth shoes the greatest resilience of all APAC countries with only a 0.26 basis point reduction in growth over the 2012-2016 period,” he said.
“While Australia is seen as resilient in this study, Sydney is the hardest hit due to its position as a key financial centre within the region.”
Brown said Melbourne is forecast to perform strongly while Perth and Brisbane are largely unscathed due to their mining and resources sectors.
“Under this study, the four main capital cities would still be seen as attractive markets for investment, particularly given the more adverse impacts [that] the Eurozone downside scenario would have on other major centres throughout the region.”
