Real estate investment in the Asia Pacific (APAC) region has risen by 15% year-on-year, reaching US$204b by March 2026, according to Colliers’ latest Global Capital Flows report. This growth aligns with the global rate, indicating a resurgence in capital directed towards standing assets despite geopolitical and economic challenges.
The report identifies Japan as the largest investment market in the region, with transactions totalling US$50.5b, followed by Australia, China, South Korea, and Singapore. Theo Novak, Managing Director of Capital Markets & Investment Services at Colliers, noted, “Asia Pacific is becoming more resilient and investable, attracting capital to markets with strong fundamentals and long-term growth potential.”
Japan and Australia are particularly appealing to offshore investors, with cross-border investments making up about 25% of their total transaction volumes. In contrast, China’s cross-border inflows remain limited at 3.4% of activity. The office sector has been the standout performer in APAC over the past two years, diverging from global trends where multifamily investments dominate.
Colliers’ research also indicates that APAC-focused fundraising in Q1 2026 has returned to 2024 levels, suggesting that investors are prioritising clear and focused regional strategies. Novak added, “Capital is returning to Asia Pacific with greater discipline in 2026, focusing on markets that offer scale, liquidity, and transparency.”
As the region’s investment recovery continues, supported by core market depth and improving capital deployment conditions, cross-border activity is expected to gradually increase, driven by clearer interest rate trends and emerging pricing opportunities.
