The Australian commercial property market continues to provide an attractive investment option for international investors, despite the challenges of the COVID-19 pandemic. Capital flows picked up strongly in 2021 as investor confidence returned to the market.
Total sales volumes across the office, retail and industrial sectors reached a record A$42.1 billion ($29.6 billion) in 2021, offsetting the weaker volumes in 2020 that were affected by the onset of COVID-19.
The office market continues to be the most affected by COVID-19. Initial uncertainty about the impact of working from home concerned the market in 2020; confidence has returned, however, as occupants moved towards a hybrid model during 2021. Institutional investors continue to dominate sales, accounting for 90 percent of the total, with CBD locations representing 69 percent of sales. About A$5.4 billion ($3.8 billion), or 41 percent of purchases, was from offshore capital, particularly the United States ($1.
