PODCAST: Why international capital could return to Melbourne

The prospect of a softening Australian Dollar throughout 2025 is likely to draw overseas capital back Down Under after a glut of new development and relentless interest rises over the past two years saw key markets put ‘on the bench’ by some investors.

Melbourne, which has been the most impacted by the culmination of factors, which also includes a slow return to the office after Covid lockdowns, is set to benefit the most, especially the hotel and office sectors.

“(In 2024) we thought we would be back into the recovery but that didn’t happen at all,” said Peter Harper, head of hotel investment sales – Australasia, JLL, speaking on the Perspectives podcast. “I think most investors took stock of where the world was at, where the markets were at and where debt was going to go. But now, with the strengthening of the U.S. Dollar and what it means for the Australian Dollar, there’s going to be a positive impact on hotel trading over the course of 2025 with a flow-on effect for investment.”