The Reserve Bank of New Zealand says the country's $NZ180 billion ($A174.52 billion) commercial property sector has become less risky since the global financial crisis (GFC) because a reduced amount of debt is being used to fund new developments and purchases.

In a recent bulletin, the bank said commercial property lending was the main reason for defaults worldwide during most financial crises.  Most people link the implosion of sub-prime lending in the US residential property market to the GFC. But the Reserve Bank said commercial property prices also fell significantly in…