With its steady growth and relatively stable market, the land down under has a well-established domestic real estate sector, and is increasingly drawing overseas players, particularly from Asia. But supply constraints and pricing are starting to make market entry difficult and may force some foreign investors to get creative with their purchases and take on additional risk.

For institutional investors, Australia’s real estate market is the tortoise to the Western world’s hare. Its growth spurts aren’t as fast, and its slowdowns aren’t as severe.

But we all know who wins the race. Having weathered a downturn during the global financial crisis, Aussie property once again looks a steady bet, with values supported by a strong, commodity-driven economy. Domestic institutional investors — whose ranks were winnowed significantly during the crisis — are returning with a vengeance. And international investors are entering the market, with Asian pension and