Our latest Savills Australian Capital Markets report provides a snapshot of current themes and trends in Australia’s commercial property investment market that are critical to our clients.

In this issue, we highlight Australia’s growing pool of superannuation capital and the potential for this to boost demand for commercial property assets and support long-term asset performance.

Focal points:

Growing pool of capital: Total superannuation assets are expected to rise from $3.5 trillion currently to between $9 trillion and $10.5 trillion by 2040 (around 185% of GDP). 

Rising allocations to property: Major institutional investors’ average target allocation to property has risen by around 200 basis points over the past decade to 10.8% of AUM.

Changing allocations within property: Rising share of industrial & logistics (33%) and multi-family residential (23%) assets in the MSCI Global Property Fund Index.