Asia Pacific’s commercial real estate market concluded 2025 on a stable note, with investment volumes totalling $182.9b, according to MSCI’s latest Asia Pacific Capital Trends report. Despite early-year macroeconomic and geopolitical uncertainties, deal activity surged in the latter half, particularly in individual property sales, which hit nearly $40b in Q4—the highest since 2022.
The office sector saw a 2% decline in Q4 transactions to $16.4b, yet recorded an 11% increase over the year. Markets like Australia, South Korea, Hong Kong, and Singapore experienced strengthened sales activity, whilst China’s investment appetite remained cautious. The industrial sector grew by 2% year-over-year, with notable interest in South Korean logistics assets. A standout transaction was Brookfield’s $700 million sale of the Cheongna Logistics Centre to KKR.
Retail investment volumes surged 29% in Q4 to $10.2b, driven by strong activity in Australia and Singapore. Conversely, the data centre sector faced an 87% decline in Q4, though 2025’s total acquisitions reached $14.1b, the second-highest annual total on record.
Benjamin Chow, Head of Private Assets Research for Asia at MSCI, highlighted optimism for 2026, citing falling long-term interest rates and a return of core investors. “The office sector is coming back into view, with growing interest in value-add opportunities amidst improved leasing sentiment,” he noted.
Looking forward, the stabilisation of financing costs and renewed investor interest suggest a positive trajectory for Asia Pacific’s real estate market in 2026.
