Foreign investors are piling back into the Australian retail and office property market, making it one of the world's most attractive investment targets.
Last year was a record year for the local commercial property market, with $34 billion in real estate sold, up 33 per cent from 2013.
Forty per cent of that activity was foreign capital, primarily from Singapore, China, the US and Canada, says investment adviser Cushman & Wakefield.
Australia is now sixth on the list of the world's most attractive commercial real estate investment markets, with Sydney ranked 11th and Melbourne 16th on the list of top cities.
"We expect this trend to continue and transaction activity to remain strong in 2015," Cushman & Wakefield Australia capital markets managing director Joshua Charles said.
Low interest rates and uncertain economic conditions have fuelled the appetite for Australian commercial property, which is offering yields of between 5.6 per cent and 8.15 per cent, the firm said.