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Asia Pacific real estate buying intentions have reached a four-year high for 2026, driven by stronger rental prospects, easing financing conditions and reduced supply pipelines, a CBRE survey shows. The office segment has become the most preferred asset class for the first time in six years as leasing activity improves. Tokyo continues to lead cross-border investment interest, followed by Sydney, while Hong Kong has re-entered the top rankings. Rising construction costs and geopolitical risks remain key concerns for investors across the region.
Net buying intentions for Asia Pacific real estate have risen to their highest level in four years for 2026, supported by a stronger rental outlook, a slowdown in new supply pipelines and gradually easing financing conditions, according to a survey by CBRE. The improvement marks a clear shift in sentiment after several years of cautious investment behaviour across the region. Advertisement
The office segment has emerged as the most preferred asset class for investors, reclaiming the top spot for the first time in six years. This change has been linked to improving leasing activity in key markets, reversing the weakness seen during periods of remote working adjustments and corporate downsizing.
Real estate investment in Asia Pacific had remained subdued in recent years due to high interest rates, tighter access to funding and structural changes affecting office demand. Investor confidence was also weighed down by geopolitical tensions and volatile capital markets, which encouraged a more defensive approach to acquisitions.
Looking ahead to 2026, net buying intentions, which measure the share of investors planning to buy more assets than sell, have increased to 17 percent from 13 percent a year earlier. This rise has been driven by stronger interest in South Korea, Australia and Singapore, along with steady demand for assets in Japan. Mainland China has continued to remain a net seller, although buying intentions in the market have improved by 11 percent compared to last year.
Tokyo has once again emerged as the most preferred destination for cross-border real estate investment, holding the top position for the seventh consecutive year. The city has benefited from relatively low borrowing costs and stable occupier demand. Sydney ranked second, while Singapore and Seoul shared third place. Hong Kong moved up to fifth position after dropping out of the top ten previously, supported by renewed interest from investors, particularly from mainland China, in living and hotel assets.
The survey was based on responses from 442 investors, including private equity firms, sovereign wealth funds and insurance companies. Within the office segment, Singapore joined Australia, Japan and South Korea as markets offering strong rental growth and attracting investor attention. In Greater China, corporate occupiers have also become more active buyers of office assets for their own use, with Hong Kong seeing a noticeable pickup in such transactions.
Despite the improved outlook, investors continue to flag several challenges for the year ahead. Rising construction and labour costs have emerged as the biggest concern for the first time, especially in Australia, Japan and Singapore, where commercial real estate construction costs have increased sharply since 2020. Geopolitical risks remain a key worry for investors from mainland China and India, while mainland Chinese investors have expressed heightened concerns about domestic economic conditions.
Source Reuters
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