Australia's largest institutions have joined other global investors in hunting for bargains in the world's largest office market, Tokyo, leading property consultant Reid Mackay says.

Mackay, head of the capital market and institutional property division of CB Richard Ellis Asia, said potential Australian investors included the Future Fund, QIC and AMP Capital Investors.

He said the first major transaction of a prime Tokyo office block since the onset of the global financial crisis was last month when Shinsei bank sold Pacific Century Tower in central Tokyo for $US1.5 billion.

Mackay said daVinci Holdings had bought the building from Richard Li -- son of the Hong Kong tycoon Li Ka-shing -- in 2006 for $US2bn.

The Australian