More than $28 billion worth of commercial property - office, industrial and retail - has been transacted in the 12 months to June in Australia, up nearly $5 billion or 20 percent on last year’s figure, with foreign investors taking 24 percent, according to Savills Australia’s latest research.

Savills Australia’s National Head of Research, Tony Crabb believes it is more likely than not that the record levels of investment will continue with foreign investment, particularly from China, and institutions, the key players.

“What we have seen over the last two years has been an extraordinary investment market in terms of sales by number and value and also in terms of the relative softness of the leasing market.

“Institutional investors have been prominent - having bought and sold $26 billion worth of commercial assets in the 12 months - as have foreign investors, together representing 74 percent of all purchases.

“The marked slowdown in the Chinese real estate market, the relaxation of investment rules flowing from the Australia-China Free Trade Agreement, the Chinese Government’s encouragement for overseas investment, and the recent Chinese stock market jitters, will all contribute to further investment in Australian commercial property,” Mr Crabb said.

He said the fall in the Australian dollar, attractive commercial property yields, continued share market volatility, and record low interest rates would also be important contributors.