As a financial adviser, I am often asked whether Australian property prices are expensive. I find this a difficult question to answer: like any investment, it’s hard to make broad sweeping comments on such a large sector.

The Australian property market is large with many different pockets. For example, the performance of property in Melbourne has been significantly different to that of Brisbane. Breaking it down even further, what type of property is it? It could be residential, commercial or industrial – each type of property has different characteristics and performance metrics.

Even within the same sector, there can be variations in price and performance. For example, the value of a residential property in Brighton may have performed completely differently to one on the outskirts of Melbourne. It’s like trying to compare the performance of Telstra and Commonwealth Bank on the Australian sharemarket – completely different companies.

Generally speaking, Australian property prices have performed exceptionally well over the past decade, in particular Melbourne residential property. It is no longer as easy to find a bargain as it may have been in the past. If you are considering purchasing a property, be aware that prices are historically high on several measures. However, this is not to say – with the right advice and by doing some careful research – you can’t purchase quality property in the current market.

The key to successful investing is to own quality assets across the major assets classes. This includes property, Australian shares, fixed interest, international shares and cash. I would caution anyone from investing heavily into only one asset class, in particular the Melbourne residential property market.

If you are considering purchasing a property in the Australian market, consult a financial adviser first.