Comments on: How Did Australia Get Caught Up Losing Money in Commercial U.S. Real Estate? http://www.dailyreckoning.com.au/how-did-australia-get-caught-up-losing-money-in-commercial-u-s-real-estate/2009/09/01/ An independent perspective on the Australian and global investment markets Sun, 21 Mar 2010 23:29:20 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Retire Guy http://www.dailyreckoning.com.au/how-did-australia-get-caught-up-losing-money-in-commercial-u-s-real-estate/2009/09/01/comment-page-1/#comment-96748 Retire Guy Tue, 01 Sep 2009 23:56:20 +0000 http://www.dailyreckoning.com.au/?p=6895#comment-96748 It is worth noting that over 80% of the institutional-grade real estate in Australia is already locked by institutions. Compare this with around 50% in the US and lower again in Europe. Property is also tightly-held in this country. This keeps prices high and yields low, hence the move offshore to access properties at a reasonable price. It is bound to happen again - we simply have too much capital and not enough investment-grade assets. It is worth noting that over 80% of the institutional-grade real estate in Australia is already locked by institutions. Compare this with around 50% in the US and lower again in Europe. Property is also tightly-held in this country. This keeps prices high and yields low, hence the move offshore to access properties at a reasonable price.

It is bound to happen again - we simply have too much capital and not enough investment-grade assets.

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