Asia Pacific’s commercial real estate market has experienced a significant upswing in the first half of 2026, with investment activity increasing by 27% year-on-year, according to CBRE’s latest mid-year review. The office sector played a pivotal role, with investment volumes climbing 29% compared to the previous year. Singapore led the charge, with notable improvements also seen in Hong Kong SAR and stabilisation in mainland China.
Greg Hyland, Head of Capital Markets, Asia Pacific, for CBRE, noted that the investment market is advancing beyond recovery. “Investors are focusing on markets and asset classes where they can capture income, particularly in cities such as Tokyo, Sydney, and Singapore, where rental growth remains strong,” he said.
Despite a 38% year-on-year decline in new Grade A office completions in mature markets, demand remains robust. This is largely driven by AI-related occupiers in Singapore and Global Capability Centres in India. Ada Choi, Head of Research, Asia Pacific, for CBRE, highlighted the resilience of leasing sentiment despite geopolitical tensions, with demand gravitating towards premium office spaces in major markets.
The logistics sector is also seeing concentrated demand in modern facilities, with Greater Tokyo standing out due to strong domestic demand. Meanwhile, the retail sector is benefiting from limited new supply and a shift towards experiential retail, particularly in Tokyo.
In the hotel industry, average daily rates have improved, although occupancy growth is constrained by reduced flights and higher fuel costs. Events and concerts are emerging as key performance drivers, boosting occupancy and room rates during low seasons. As construction costs rise, new supply is limited to high-end products.
