Graph 4  Click to view larger  As in the housing market, conditions have not been uniform across the country, and they have been noticeably firmer in Sydney and Melbourne than in other centres. But in aggregate, the major categories of commercial property have all seen downward pressure on yields over recent years.
Strong demand from foreign buyers has contributed to this, reflecting the global environment of low interest rates and “search for yield” (Graph 5). The  8  BIS central bankers’ speeches  risks appear manageable at this stage, but they underscore the need for sound lending practices and for appropriate prudence by investors.