Figures | Intelligent Investment

Q3 2025 Asia Pacific Cap Rate Survey

October 30, 2025 5 Minute Read

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CBRE professionals in Asia Pacific note an overall improvement in investment sentiment and risk appetite, with Japan, Singapore and Australia the most attractive markets for cross-border investors.

 

Investment volumes rose by 20% year-on-year in the first three quarters of 2025, led by Korea and Japan.

 

Buying intentions improved in most markets, most notably in Hong Kong SAR, and are strongest among real estate funds and private investors. Asset repricing and rental growth remain the top factors to enhance investment returns.

 

Respondents said that investors are less concerned about tariffs amid several trade deals reached with the U.S., with their top concern now shifting to overall growth headwinds.

 

In terms of investment demand by sector, multifamily, hotels and offices are the most popular, while interest in logistics has declined. Data centres and student housing remain the most attractive alternative sectors.

 

Ongoing bifurcation of cap rates is expected across Asia Pacific markets, with cap rates in Greater China remaining on an upward trend, while compression is being observed for the retail and logistics sectors in the Pacific region.

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