The United States continued to be the most active source of investment capital into Australia , growing 45.2 per cent compared to the prior quarter . Historically , the US is the largest investor of commercial property into Australia , last year ( 2021 / 22 ) purchasing $ 118.9 billion worth up from $ 57 billion in 2020 / 21 . Canada is also a strong investor into Australian property , with a strong appetite for quality , trophy CBD office assets . Given the weight of funds available via Canadian pension funds and listed vehicles , we ’ ve seen fluctuating results inline with the larger sales Canadian funds are known to be involved in . It ’ s anticipated that financing will become a stumbling block for some larger institutional vehicles , which may see a stabilisation of investment out of North America .
Singapore has picked up their investment over the last 18 months , particularly in the hotel and leisure sector . Over the September and December quarters , investment remained stable , totalling $ 10 billion , after $ 24 billion in sales during the prior financial year . China / Hong Kong ’ s investment into commercial has decreased over the past few years , however , this current quarter has shown strong results with retail and hotel being the asset type of interest .
Also in Asia , South Korea is a market which has been increasing its holdings into Australia , across all asset classes . This period , we ’ ve seen $ 4.2 billion in investment already , approaching the full 2021 / 22 results of $ 4.5 billion . These markets are anticipated to continue to seek out investment opportunities this year and may favour the Australian market to the North American and European markets given banking uncertainty . Japan may continue its quiet start to the financial year , with just $ 1.4 billion changing hands in 2022 / 23 after achieving $ 7.1 billion the year prior .
Across the residential market , China and Hong Kong are the greatest investors into property , with this tipped to increase during the first half of this year given the change in online student learning in China , which has already seen an uptick in foreign student numbers and demand to purchase increase .
Europe has been reducing their investment into Australia more recently , which is expected to continue during this year as the banking crisis unfolds . The United Kingdom has only recorded $ 700 million in sales during the December quarter , with full year results anticipated well behind the $ 6.5 billion recorded in 2021 / 22 . Markets such as Germany have been quiet this financial year with Spain and Czech Republic showing some increase in investment across various smaller assets .
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