Asia Pacific commercial real estate investment activity accelerated in the first half of 2026, rising 27% year-over-year, with office transactions climbing 29% and leasing momentum improving across key markets, according to CBRE’s mid-year regional outlook released Thursday.<\/p>\n
Most sectors and markets recorded gains. Singapore led the rebound in investment volumes, while activity improved in Hong Kong and began to stabilize in mainland China.<\/p>\n
“The investment market is moving beyond recovery, with investors focusing on markets and asset classes where they can capture income, particularly in cities such as Tokyo, Sydney, and Singapore, where rental growth remains strong,” said Greg Hyland, Head of Capital Markets, Asia Pacific, for CBRE.<\/p>\n
New Grade A office completions in mature markets dropped 38% year-over-year in the first half, and supply is expected to tighten further as elevated construction costs and constrained development pipelines limit fresh stock. Demand has been resilient, supported by artificial-intelligence related occupiers in Singapore, global capability centres in India that provide technology and operational support for multinational firms, and continued flight to higher-quality space in mainland China. CBRE anticipates stronger leasing activity and rental growth through the remainder of the year.<\/p>\n
“While Middle East geopolitical tensions heightened uncertainty, leasing sentiment across Asia Pacific remained resilient,” said Ada Choi, Head of Research, Asia Pacific, for CBRE. “Demand continues to gravitate toward premium office space in major markets such as Tokyo, Hong Kong SAR, and Sydney, reflecting a sustained focus on talent attraction, workplace quality, and long-term business performance.”<\/p>\n
In logistics, leasing volumes are expected to hold up, though demand is concentrating more heavily on modern, well-located facilities, widening the performance gap with secondary assets. A shrinking development pipeline from 2027 onward should support firmer rents regionally. Greater Tokyo stands out, with improving rental growth prospects driven by broad domestic demand, while conditions in India and Australia remain more mixed amid softer expansion requirements and ongoing supply pressures.<\/p>\n
Retail is positioned to benefit from limited new supply and steady demand for prime space in the second half. New-to-market Asian brands and the rise of experiential retail concepts are supporting leasing activity. Tight availability and retailer interest should underpin rental growth in markets such as Tokyo, though softer demand for non-core locations and pressure on retailer profitability may constrain performance elsewhere. Prime assets are expected to outperform as consumer preferences continue shifting toward experience-driven environments.<\/p>\n
Hotel performance has been mixed on occupancy but stronger on rates. Reduced flights from the Middle East and higher fuel costs have limited occupancy gains in some markets, yet most locations recorded year-over-year increases in revenue per available room by lifting average daily rates. Events and concerts are emerging as important drivers, generating occupancy and rate spikes while filling low-season periods. Elevated construction costs in developed markets are restricting new supply largely to high-end product.<\/p>\n
Overall, the mid-year review portrays a market that has regained momentum, with tightening supply in several sectors and selective demand for prime assets supporting the outlook for the balance of 2026.<\/p>\n\n