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Private investors and syndicators accounted for two-thirds of all sales in the first half of 2009, market analysis from CB Richard Ellis (CBRE) has found.
More than 47 per cent of all purchases in the first half were made by domestic private investors, an increase on the 38 per cent recorded this time last year.
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Foreign investors were the other key purchasing group, accounting for 12 per cent of all activity.
“Both of these groups are using mostly equity in transactions, at a time when banks remain reluctant to lend on either commercial property investment or development," Kevin Stanley, CBRE executive director of research and consulting, said
"They are likely to remain the key purchaser groups for the balance of 2009, while purchasing competition from local institutions remains limited."
According to CBRE, just $2.4 billion of commercial property valued at over $5 million changed hands in the first half of 2009, a 45 per cent decline on the volume of sales recorded in the same period in 2008.
The number of sales above $5m declined 22 per cent over the same period, falling from 155 to 110.
Mr Stanley said despite the fall, the sales tally remained high given the effects that the global financial crisis has had on the industry.
