Singapore, India, Hong Kong drive APAC property investment growth

Property investments grew 18% to over US$46 billion in Q1.

Asia Pacific commercial real estate investment remained robust in Q1 2026, with total volumes rising 18% year-on-year to US$46.2 billion, according to CBRE.

The firm said growth was supported by strong activity across key gateway markets, particularly Singapore, India and Hong Kong SAR, as investors continued deploying capital despite a more complex geopolitical and macroeconomic backdrop.

CBRE’s latest Asia Pacific Cap Rate Survey found that while investor sentiment has eased compared with six months ago, it remains well above pandemic-era levels, underpinned by stable leasing demand and ongoing capital deployment across most markets.

Cap rates continued to reflect divergent local conditions. Australia is experiencing upward pressure on cap rates, Japan has limited scope for further compression, while mainland China is showing early signs of stabilisation. Hong Kong SAR recorded one of the strongest buying intention readings in the region, signalling renewed investor interest.

Geopolitical tensions remain the key downside risk, particularly in Korea and Pacific markets, while interest rate uncertainty continues to weigh on sentiment in Japan and Australia. Despite this, CBRE said resilient occupier fundamentals are supporting the medium-term outlook.

Grade A office assets were identified as the most attractive sector across the region, while student housing in mainland China is also gaining traction due to favourable supply-demand dynamics.

CBRE Head of Capital Markets Asia Pacific Greg Hyland said investors are re-engaging selectively, focusing on markets and assets that offer defensive income and long-term structural growth.

Investment behaviour is also diverging across markets. In mainland China, institutional investors are becoming more active buyers, supported by domestic insurers increasing direct real estate allocations. In contrast, Australia remains more cautious, with investors taking a repricing-driven approach amid macro uncertainty.

In Singapore, CBRE noted a dual dynamic, with asset owners increasingly willing to sell to capture favourable pricing while buyer demand remains healthy and improving.

CBRE Head of Research Asia Pacific Ada Choi added that sustained high construction costs are likely to constrain new development starts, tightening future supply and potentially creating a medium-term supply-demand imbalance that could benefit investors.