Asia Pacific commercial real estate investment volumes soared to a record US$47b in the first quarter of 2026, marking a 31% year-on-year increase, according to JLL’s latest report. This unprecedented growth underscores robust investor confidence and market resilience, despite geopolitical tensions in the Middle East affecting global energy markets.
Cross-border capital flows reached an all-time high of US$16.3b, an 87% increase from the previous year. Singapore led the region with a staggering 433% year-on-year growth, achieving US$11.5b in investment volumes. This was largely driven by significant asset transfers, including Hongkong Land and QIA’s transactions with SCPREF.
Japan maintained its position as the region’s top market, with US$13.2b in investments, despite a slight 4% decline year-on-year. The office sector dominated, accounting for US$24b in transactions, a 46% increase, whilst industrial and logistics investments rose by 53% to US$8.5b.
Data centre investments also surged to US$4.1b, driven by AI demand and data sovereignty needs. Hotel transactions increased by 36%, with Japan, China, and South Korea leading the activity.
Stuart Crow, CEO of Asia Pacific Capital Markets at JLL, noted the potential risks from energy shocks due to geopolitical events. However, he emphasised that mature markets like Japan and Singapore are likely to remain attractive due to their market depth and ability to mitigate energy import exposure.
Pamela Ambler, Head of Investor Intelligence at JLL, highlighted the growing focus on “Heavy Assets with Low Obsolescence,” presenting a compelling opportunity for long-term investors amidst declining new supply and favourable acquisition costs.
