Asia-Pacific real estate investment activity has seen a significant resurgence in the first quarter of 2026, with total investment volumes reaching $64.6b. This marks a 13% increase from the previous quarter and a 64.7% rise year-on-year, according to Knight Frank’s latest Asia-Pacific Capital Markets Insights. The uptick indicates a shift from price discovery to active deployment as investor confidence returns.
The office sector led the charge, with investments totalling $23.5b, a 46.7% increase from the previous year. This growth is attributed to a strategic reallocation of capital into prime assets in developed markets. Notable transactions include Mirae Asset’s acquisition of G1 Seoul Buildings A and B in South Korea for $1.05b. Additionally, 18 out of 24 Asia-Pacific cities reported stable or rising rents, highlighting a broader recovery.
Cross-border investment also gained momentum, more than doubling year-on-year to $22.4b. Japan emerged as the top destination for cross-border capital, attracting $6b in investments. Singapore recorded a historic surge, with volumes rising to $5.7b, driven by significant portfolio deals such as Hongkong Land’s spin-off of office assets into a private fund.
Looking ahead, Knight Frank anticipates steady but selective investment activity in Q2 2026. Geopolitical risks, particularly in the Middle East, could impact inflation and financing conditions. However, well-located core assets in safe-haven markets are expected to continue attracting strong interest.
