Australian Capital Flows Report – H1 2025

Key points:

• Sales activity in Australia's commercial real estate market experienced a robust resurgence in the first half of 2025, with transaction volumes rising by 13% y-o-y to $15.5 billion.
• The improvement was driven by higher volumes from the Industrial & Logistics and Retail sectors.
• Offshore investment in Australian commercial property grew in the first half of 2025, experiencing a 17% y-o-y increase and capturing 28% of total capital deployed.
• North American investors dominated, injecting $1.7 billion, benefitting from a favourable exchange rate whilst also seeking diversification in other regions of the world.
• Australia remains a safe haven in the APAC region, fuelled by robust fundamentals like population growth and a stable economy.