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Foreign capital driving property market: RCA

Offshore investment in Australian commercial property kept the market afloat last year, according to Real Capital Analytics.

Speaking at the launch of Real Capital Analytics' Sydney office, head of analytics for the Pacific region Ben Martin-Henry said foreign capital has driven the market.

"Deals like 100 Market Street in Sydney went to offshore buyers, 45 Clarence Street in Sydney went offshore, but eight of the top 10 deals in Sydney involve offshore money. So that really kept our market going," he said.

"A lot of other markets did not have that breadth of capital from offshore markets to keep their markets afloat. I think we did really well."

Martin-Henry explained RCA's liquidity scores try to use probability as a proxy for liquidity.

"Essentially the greater the depth and breadth of capital markets, the higher chance you have of achieving a good price upon exiting. If the score of is rising it means the depth of administered capital is high in the market and vice versa," he said.

"What we saw last year was that all major markets in Australia (minus Perth) managed to stay above previous lows. When you look at other markets across the world, we didn't see that because there wasn't that sheer volume of offshore capital."

RCA has launched an expanded product for Australia that offers the most comprehensive set of commercial real estate intelligence and has partnered with CoreLogic to include data on all commercial transactions above $1 million.

RCA's Investor Universe includes detailed profiles on each player in the market and provides visibility into the linkage of the true buyers and sellers.

"I am so honoured and excited to be a part of this significant milestone in RCA's 20-year history by spearheading the first location outside of the USA that exists to serve a single domestic focused market," RCA regional director for Australia David Metcalfe said.

"This represents RCA coming full circle to offer the best solutions we can to our clients for global and local data. Moreover, it is my hope that the local expertise and support offered by our team of analysts, researchers, and client relationship managers will prove an invaluable resource to our clients in Australia, both veteran and new."

Read more: RCAReal Capital AnalyticsDavid MetcalfeBen Martin-Henry