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Commercial property agents have dismissed suggestions made by RBA Govenor, Glenn Stevens, that there is a pending slump in the sector.
In the RBA's semi-annual financial stability review, Mr Stevens warned that "the risk of a large repricing and associated market dislocation in the commercial property sector has increased".
"The total value of office, industrial and retail property transactions has risen sharply recently, with a notable increase in the share of transactions involving foreign purchasers, particularly in Sydney," the RBA review says.
Josh Cullen, national director of capital markets at CBRE said Australia was one of the more attractive investment markets globally.
"The RBA is disconnected with the market," Mr Cullen said.
"On the world stage, Australia is very attractive as a low debt but with higher returns investment market. The weight of money coming into office, retail and industrial property is testament to that. There was about $20 billion of transactions last year for properties worth more than $5 million individually, and we expect that to be higher in 2015."
Mr Cullen said that fundamentals could only trend upwards.
DEXUS chief executive Darren Steinberg forecast the office leasing market, particularly in Sydney and Melbourne, would show strong signs of improvement.
He predicted that in Sydney, office vacancy would fall to about 6.5 per cent, from the current 8 per cent, by 2017, based on demand for space by the financial, legal and technology sectors, and the conversion of older offices into apartments.
DEXUS general manager of research Peter Studley said: "The Sydney CBD office market is well into its recovery phase after recording four quarters of positive net absorption in 2014".
"The market is well prepared to handle new supply and the consequent availability of backfill space in financial year 2016-17 assuming demand remains positive," Mr Studley said.
"As a result, we anticipate that vacancy will decrease sharply after 2017 to around 6.5 per cent."
Nerida Conisbee, the national director, research at Colliers International said yields are getting tight globally for commercial property, back to 2007 levels in many countries.
"Easy monetary policy is part of it. But there are two other factors. The first is the entry of China as major buyers globally," Ms Conisbee said.
"Currently 50 per cent of investment in commercial property by Chinese is moving out of Asia. We have never seen such high levels. At the same time we are not seeing a drop off by traditional cross border buyers such as Singapore.
"The second issue is that pension funds, insurers and sovereign wealth funds globally have increased their allocations to direct property. This is also driving up the amount of capital chasing assets."
