Transactions for office, retail and industrial properties with a value of more than A$5 million ($4.8 million) fell to A$3 billion in the six months ended June 30, from A$7.5 billion a year earlier, property consultant CB Richard Ellis Pty Ltd. said in a recent e-mailed press release.

A tightening in credit has reduced the buying power of Australian real estate investment trusts, CBRE said. The nation's interest rates, which are at their highest in 12 years, have also stoked concern among investors that economic growth may weaken.

"Buyers appear reluctant to commit at this time," Kevin Stanley, a Sydney-based executive director at CBRE's research and consulting arm, said in today's release. They are "uncertain whether prices may fall further on the back of an increasing cost of borrowing."

Sales of retail properties such as shopping malls fell 84 percent during the period, the biggest drop among the three categories, according to Stanley. Industrial building transactions fell 68 percent.

Sales of office buildings fell 28 percent. The sector accounted for 74 percent of all commercial property transactions, up from 44 percent a year earlier, the release said.

"The underlying fundamentals in this sector are the brightest of all, with vacancies still very low and construction activity moderate," Stanley said.