Hines, a global real estate investment manager, has identified a “scarcity advantage” in select developed Asian markets, including Tokyo, Seoul, Singapore, and Sydney, according to its 2026 Mid-Year Outlook. The report reveals that these markets are experiencing robust demand coupled with constrained future supply, creating favourable conditions for investors.
Tokyo’s office sector is highlighted as one of the strongest globally, with industrial fundamentals also improving as vacancy rates decline and rent growth accelerates. In Singapore and Sydney, necessity-led retail assets are thriving due to their strategic urban locations, limited new supply, and sustained demand, which are driving rental growth. Seoul’s living sector is also noted for its positive medium-term outlook, supported by wage growth, an increase in single-person households, and a tight housing supply, leading to above-inflation rental growth.
David Steinbach, Global Chief Investment Officer at Hines, emphasised the importance of local market dynamics over broad regional trends. “The strongest investment opportunities have become increasingly concentrated in markets where long-term demand remains durable but future supply is difficult to deliver,” he said.
The report suggests that higher construction costs, development risks, and financing costs are delaying new supply in many markets, further enhancing the scarcity advantage. As competition for well-located assets intensifies, Hines believes recognising this scarcity will be crucial for investors seeking durable returns.
