Real estate group CBRE predicts foreign investment in commercial real estate is expected to fall this year, The Australian Financial Review reports.
According to the newspaper, the strengthening global economy is creating more competition for offshore capital, as a CBRE survey of investor intentions found Australia ranked second behind China.
CBRE Australia head of research Stephen McNabb told the AFR he expects a slowing in capital inflows, but not an exodus, as Australia starts to compete with China and other growth regions for global capital.
"This is consistent with our view demand for Australian assets falls relative to improving growth stories globally, the outcome of which has been reflected in a lower Australian dollar over the past six months or so," Mr McNabb said.