The withdrawal from sale of a Melbourne office building after market bids fell well short of its book value has raised wider questions about commercial property valuations as rising interest rates roil markets around the globe.

Upheaval across the global banking sector – from Silicon Valley to Zurich – has set alarm bells ringing on the stability of the global financial system and where the next area of weakness will emerge. Could commercial property, and in particular landmark office towers, be the next domino to fall?