With commercial property yields at record lows across the major markets and sectors, perhaps now is the appropriate time to ask the question: is Australian real estate looking frothy?
Globalisation, information technology, reduction and removal of barriers to entry have all helped facilitate investors moving offshore seeking investment opportunities. Such is the integration of global markets that barriers to entry into the property market have been all but eradicated in the majority of established markets, and the variety of financing options are more plentiful than ever before.
What this means for property is that pricing must be looked at in global context. If your mandate is to purely invest domestically then compared to historical pricing yes real estate in certain Australian markets could be said to be frothy, but relative to global competitor markets Australia still represents good value for money.