Brief
Asia Pacific Investment Trends Q3 2026
October 13, 2026 5 Minute Read
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- In Japan, the Bank of Japan has lifted its policy rate twice this year to 1.25%, taking funding costs to their highest level in years. Investment activity nonetheless has held strong, with yields broadly flat (aside from Tokyo logistics) as double-digit Grade A office rent growth offsets higher borrowing costs. Investors are prioritising under-rented assets with clear reversion potential.
- Investment activity in Singapore has picked up over the past 12 months, supported by solid economic growth and interest rates that were cut 200 bps in 2025 before stabilising. Office and mixed-use deals dominate, while retail interest is broadening beyond suburban malls. Activity is expected to persist into 2027, backed by substantial unallocated capital.
- In India, domestic capital is increasingly prominent as REITs, mutual funds and AIFs acquire built-up offices, while foreign capital favours alternatives such as data centres. October’s rate hike is bringing cap rate compression to an end, though stable occupier demand for office, warehousing and retail should keep institutional appetite intact.
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Research Contacts
Business Contacts
Greg Hyland
Head of Capital Markets, Asia Pacific
Michael Tay
Singapore Advisory Deputy Managing Director and Head of Capital Markets
Lic. CEA No.: R003860E
Nikhil Bhatia
Managing Director & Co-Head, Capital Markets & Land, India
Gaurav Kumar
Managing Director & Co-Head, Capital Markets & Land, India
Richard Orbell
Senior Director, Investment Properties, Capital Markets, Japan
