Switzerlands biggest bank enters Australias Property market with AU$10 billion

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UBS AG (UBSN) Switzerlands biggest bank, is entering Australia’s property market to invest as much as AU$10 billion over the next five years.

The Asia Pacific as a whole is a strategic priority and Australia is one of the most attractive markets in the region with investor demand for Australian property climbing and driven by relatively higher yields as home prices in the nation’s biggest cities reach records each month.

Australia was among the three most active Asia-Pacific markets for property transactions in the three months to Sept 30 after Japan and China, data from has shown.

Home prices across the nation’s biggest cities jumped 8.3 percent this year to Nov. 30, according to the RP Data-Rismark home value index.

UBS manages $8 billion of retail and industrial property in Japan through a joint venture with Mitsubishi Corp., and partners with Chinese developer Gemdale Corp. in a residential development fund on the mainland.

Switzerlands biggest bank entering Australia is obviously another sign of the huge amount of global confidence in the Australian property market as a stable, reliable, and consistent area to invest capital for long term security.