Australia’s major real estate markets have long been considered gateways for investors seeking to diversify their portfolios into Asia Pacific, reap asset appreciation and attain reliable income streams. But numerous recent interest-rate hikes from the Reserve Bank of Australia to tamp down inflation — which has plagued many nations since the COVID-19 pandemic — still have some investors on edge, especially as asset repricing begins to work its way through the nation’s property markets. In mid-February, Institutional Real Estate Asia Pacific senior editor Dr Jennifer Molloy spoke with two experts on Australia, and their responses are collected below. The Q&A includes Deborah Coakley, executive general manager, funds management, Dexus; and Leonie Wilkinson, senior vice president, Brookfield.

Given macroeconomic concerns, how healthy is Australia’s econ