Daily Buzz: Thursday, 2 May
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PropertyBuzz, your daily dose of property news.
Commercial investment stays strong in the Asia Pacific, Melbourne gets ready to top its new train stations with residential towers, and one Perth builder is helping families keep their dreams of a new home alive.
Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Thursday, the 2nd of May, and commercial real estate investment in the Asia Pacific remained strong in the first quarter of 2024, despite elevated interest rates across the world.
– Investment volumes across the region hit $30.5 billion USD, with the highest activity seen in the office sector.
– Japan was the most active market with a 29% year-on-year increase in investment, while South Korea also saw a significant 73% increase in commercial assets.
– Major economies like Australia, China, and Hong Kong have experienced a decline in investment volumes compared to 2023, but further investment activity is expected as markets adjust to the rate environment.
Down in Victoria, the state government has announced plans to build 70,000 new homes around six stations of the upcoming Suburban Rail Loop in Melbourne, with high-rise towers up to 40 stories planned above the stations.
– The 90-kilometre rail loop is expected to be operational by 2035.
– Proposed development around the stations aims for a mix of high-rise apartment and office buildings in close proximity to the stations, transitioning to townhouses and mid-rise apartments a short walk away.
And over in Western Australia, one Perth builder is addressing the construction gridlock with a new business strategy.
– Lucas Patterson originally aimed to focus on bespoke builds with his firm Patterson Construction, but he has shifted his business model to specialise in completing homes that have been left incomplete due to builder insolvencies.
– With high construction costs causing numerous large and small building firms to collapse, many customers have been left with their homes half-finished.
– Patterson Construction has already successfully completed several homes with its specialised team, with many clients calling them “lifesavers.”
That’s all for today.
See you again tomorrow, the 3rd of May, for your daily dose of Property Buzz.
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