APAC real estate investment hits US$204b in Q1

This represents a year-on-year increase of 15%.

Asia Pacific real estate investment across Asia Pacific reached US$204 billion in the rolling 12 months to March 2026, representing an increase of 15% year-on-year. According to Colliers, this matches the global growth rate and signals renewed momentum as capital returns to standing assets.

Colliers’ Global Capital Flows May 2026 report found investors are increasingly targeting the region’s most liquid and transparent markets despite ongoing geopolitical and macroeconomic volatility.

Here’s more from Colliers:

Over the 12 months to March 2026, Japan remained the region’s largest investment market with approximately USD$50.5billion in transactions, followed by Australia (USD$36.7billion), China (USD$36billion), South Korea (USD$35billion) and Singapore (USD$18.7billion)*.

“What we’re seeing in Asia Pacific is a more resilient and investable region, where capital is being drawn to markets with strong fundamentals and long-term growth potential,” Theo Novak, Colliers’ Managing Director of Capital Markets & Investment Services, Asia Pacific, said. “From Japan’s scale to Singapore’s macro strength and Australia’s income-driven opportunities, investors are finding compelling reasons to re-engage.”

Japan and Australia continue to attract a significant share of offshore capital, with cross-border investment accounting for around one quarter of total transaction volumes in both markets. China remains a top-tier investment market by total volume, although cross-border inflows remain limited at approximately 3.4% of activity*.

“Sector performance across APAC continues to differ from global trends,” Mr Novak said. “While multifamily dominates in North America, office has been the standout sector in APAC over the past two years, particularly in major gateway markets.

“Industrial and retail investment volumes are broadly aligned across the region, reflecting sustained demand for logistics assets alongside more selective retail strategies. This divergence underlines the importance of targeted, market-specific investment strategies in APAC.”

According to Colliers research, APAC-focused fundraising in Q1 2026 has returned to 2024 levels following a modest uptick in 2025, as investors continue to prioritise clarity and conviction in regional strategies. Globally, fundraising activity has slowed, although the time required to raise capital has reduced, suggesting that well-defined strategies are resonating more strongly with investors.

“Capital is returning to Asia Pacific with greater discipline in 2026,” Mr Novak said. “Investors are focusing on markets that offer scale, liquidity and transparency, which is why Japan, Australia and Singapore continue to attract global capital.

“While pricing remains sensitive to inflation and interest rate movements, the region is in a stronger position than in recent cycles. Positive, though narrowing, yield spreads continue to provide a basis for investment.

“APAC’s investment recovery is expected to continue, supported by the depth of core markets, improving capital deployment conditions and selective opportunities across sectors. We expect cross-border activity to build gradually, supported by improving clarity on rates and the re-entry of capital into markets where pricing opportunities are emerging.”

*Source: Colliers, MSCI Real Capital Analytics