Commercial property transaction volumes have climbed 16 per cent in the first half of 2026, with local buyers stepping up as offshore buyers pulled back amid global uncertainty.
New data showed that the value of domestic commercial property transactions has surged in the first half of this year, jumping up to $19 billion, with domestic buyers driving sales.
According to CBRE’s Australian Capital Flows Report, which analysed office, retail, industrial and logistics (I&L), hotel, and living sector deals, the result marked a 16 per cent increase on the same period in 2025.
Across the board, retail was the most traded sector in 1H2026, with $6.1 billion in assets changing hands, an increase of 4 per cent from last year.
I&L ranked second with $5.5 billion in trades, while volumes for industrial were up by 5 per cent year on year.
Meanwhile, activity in the living and hotel sectors rose significantly from last year’s result, recording $2.0 billion in living deals, a 93 per cent boost, and $1.2 billion in hotel trades, an 85 per cent rise.
CBRE’s Pacific head of capital markets, Flint Davidson, said the figures in the report reflected a period of volatile market conditions, domestically and abroad.
“Following strong momentum and elevated transaction activity in the new year, we entered a period of disruption driven by interest rates, inflation, and conflict in the Middle East before a level of stabilisation more recently,” he said.
Davidson said that despite uncertainty this year, the 16 per cent increase year-on-year indicated the market was becoming more resilient to increasingly common shocks.
“Looking ahead, we expect a substantial pipeline of property assets to be brought to market in H2,” he said.
According to CBRE, the results also highlighted an increase in activity from domestic purchasers, with the level of offshore buying falling 8 per cent year-on-year to $4.0 billion, accounting for just 21 per cent of the total sales volume.
Overall, the report noted the United States had been the top source market for commercial sales over the past 12 months, accounting for $2.7 billion in transactions, followed by Japan ($1.5 billion) and Singapore ($1.5 billion).
CBRE’s head of capital markets research, Tom Broderick, said in 1H26, domestic institutions and fund managers had clearly become more active, while investment from offshore groups had slowed.
“Volatility at the global level often causes investors to pause and concentrate on their home markets, which is what we are seeing so far this year,” Broderick said.
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