Commercial real estate investment in the Asia Pacific region soared to a record US$92.5b in the first half of 2026, according to JLL. This marks a 35% year-over-year increase, despite challenges such as energy inflation and currency volatility. The second quarter alone saw investments of US$45.5b, a 38% rise from the previous year.
Japan led the region with US$10.6b in Q2 investments, driven by strong office sector activity. Meanwhile, Hong Kong experienced the highest growth, with a 129% increase to US$3.1b, fuelled by retail and office deals. Singapore also saw significant growth, with investment volumes rising 108% year-over-year to US$6.7b, anchored by major deals such as CICT’s acquisition of Paragon mall.
Stuart Crow, CEO of Asia Pacific Capital Markets at JLL, noted, “The sheer scale of transactions this quarter shows that capital remains abundant.” He highlighted the compelling rental growth prospects across major markets, driven by limited supply and rising replacement costs.
The report indicates a shift towards technology-supporting assets and value-add real estate, with data centres and logistics portfolios seeing strong demand. Despite geopolitical uncertainties, the appetite for Asia Pacific real estate remains robust, as investors focus on sectors with structural demand, such as data centres in Japan and logistics in Australia.
Pamela Ambler, Head of Investor Intelligence at JLL, remarked, “Investors are pivoting toward sectors with strong structural demand or targeting assets that offer immediate yield stabilisation.” As the year progresses, the focus will likely remain on defensive sectors amidst ongoing economic uncertainties.
