Asia Pacific Real Estate Investor Sentiment Soars to Four-Year High for 2026
Investor appetite for real estate across the Asia Pacific region has strengthened significantly for 2026, with net buying intentions reaching their highest level in four years, according to a comprehensive survey conducted by CBRE and published last week. The survey reveals a notable shift in market dynamics, driven by improved rental prospects, a reduction in new project launches, and more favorable financing conditions that have collectively lifted investor confidence.
Office Sector Emerges as Top Investment Choice After Six Years
For the first time in six years, office properties have become the preferred choice among investors, marking a significant recovery in leasing demand across key markets. This resurgence comes after a period of muted investment activity in the region, which was previously pressured by rising interest rates, tighter lending conditions, and ongoing transformations in office usage patterns. Additionally, heightened geopolitical risks and unstable financial markets had kept many investors cautious in recent years.
The survey indicates that for 2026, the share of investors planning to increase their purchases compared to sales has risen to 17%, up from 13% a year earlier. This positive trend reflects growing optimism about the region's real estate prospects.
Strong Buying Interest in Key Markets: South Korea, Australia, Singapore
Stronger buying interest was particularly evident in South Korea, Australia, and Singapore, while Japan continued to attract steady and consistent demand. Although mainland China remained a net seller overall, investor intentions to purchase properties there improved by 11% compared to the previous year, signaling a potential shift in sentiment.
Tokyo maintained its position as the most attractive destination for cross-border real estate investment for the seventh consecutive year, largely due to its low borrowing costs. Sydney followed closely in second place, with Singapore and Seoul sharing the third position. Hong Kong ranked fifth, returning to the top tier of investment destinations, supported by renewed interest—especially from mainland Chinese investors—in residential living and hotel assets.
Survey Methodology and Key Findings
The survey, as cited by Reuters, collected responses from 442 investors, including private equity firms, sovereign wealth funds, and insurance companies. Within the office sector, Singapore joined Australia, Japan, and South Korea as markets offering strong rental growth, making them key targets for investment. Companies in Greater China also increased their purchases of office buildings for their own use, with a particular focus on Hong Kong.
Rising Costs and Geopolitical Concerns Pose Challenges
Rising construction and labor expenses were identified as the biggest challenge for investors in 2026, marking the first time this issue has ranked at the top of concerns. Cost pressures were most noticeable in Australia, Japan, and Singapore, where commercial real estate construction costs have increased sharply since 2020.
Geopolitical risks remained a significant concern for investors from China and India, while mainland Chinese investors were most worried about domestic economic conditions. These factors highlight the complex landscape that investors must navigate as they plan their strategies for the coming year.
The overall findings suggest a cautiously optimistic outlook for the Asia Pacific real estate market in 2026, with improved fundamentals and selective opportunities driving renewed investor interest across the region.
